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When you are looking to sell your home, you try to add as much value as you can to the sale without spending too much. A home warranty can be one of those features you add to sell your home.
Identification
A home warranty is an insurance policy you can purchase that will cover repairs primarily to major appliances, the home heating and cooling system, plumbing and to the home's electrical system as well. The policy is normally transferable, which makes it a popular addition to a home sale.
Size
According to HomeLibertyProtection.com, the average cost of a home warranty can range from $160 to $180 per year depending on the insurance company. In addition to the cost of the policy, some companies will add an additional co-pay for each claim filed that can range anywhere from $50 to $100 per repair.
Features
Home warranty work is traditionally done by local contractors that are hired by the insurance company.
Benefits
According to Hometips.com, some insurance companies offer additional home warranty riders that can cover swimming pools, hot tubs and an outdoor jacuzzi.
Considerations
Once a home warranty is transferred, the new home owner will enjoy the benefits of the policy for the remainder of its one year term. The new homeowner will have the option of renewing the policy each year, or allowing it to lapse.
Source:
WalletPop.com: Do Home Warranties Really Save You Money?
LibertyHomeProtection.com: What Does Your Basic Home Warranty Cover?
Hometips.com: What Does a Home Warranty Cover?
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