The Importance of Getting a Home Warranty When Buying a House


If you are buying a home there are so many benefits as to why you want to get a home warranty. Or if you are a seller you can get sellers coverage while your home is listed for sale as protection for certain items that may break.

I just had a situation where the AC could not be fixed and 2-10 Home Warranty replace the entire heating and cooling unit. Saved me huge amounts of money… so glad I had a home warranty in place!

You never know when something is going to break and need fixing when it comes to your home. People carry all types of insurance like car insurance, health insurance, home owners insurance which protects you from catastrophic events so you do not get wiped out financially. So why not get a home warranty when buying a house. It could save you thousands of dollars.

When you buy a home you don’t get familiar with the home until you move in. It is then, you figure out all the little things that were missed during the home inspection or inspections. Home inspectors are not perfect and things will be missed during inspections.

Getting a home warranty especially during the 1st year of owning the house is a smart thing to do!

Below is the video transcription: 

The Importance of Getting a Home Warranty When Buying a House

Tyler- Hi everyone, this is Tyler Ford, Keller Williams, and I’m here with Heather Chumbler-Rich, she is the account executive for 2-10 Home Warranty.

Heather- Hello.

Tyler- And I wanna thank you, we’re in my office right now but I’ve always wanted to do this interview because of how important getting a home warranty is

Heather- It is.

Tyler- Especially when you’re the buyer, but even as the seller, offering up, because it takes some of the liability away. It’s probably been about six months ago, we had a property that we had bought, it was an investment property that we were gonna fix and flip, and it had an older AC unit on it, and Heather recommended that we get it certified when we bought it, and it was actually working in good condition, but when the buyer went and bought the property, it wasn’t working effectively, and they found that there was a part that needed to be fixed.

Tyler- Well, long and short, that part couldn’t be replaced, so 2-10 actually put a brand-new unit on the roof, probably, I don’t know, 5, 6 thousand dollars in terms of an expense, if I were to have had to have done that, so the buyer of the property that we bought got a brand-new AC unit because we put a home warranty in place. Heather was a big part of getting that done, so thank you.

Heather- Well, thanks. It was a good hurrah for all of us.

Tyler- So, talk a little bit about how important, like whenever I represent a buyer or seller, especially a buyer, it’s really important in the contract always write that there’s a home warranty asking the seller to pay, we don’t always get that. If they don’t pay for it, I always recommend still getting it, but just talk a little bit about how important it is.

Heather- Sure! This is my home service agreement, and ultimately a home warranty protects the major systems and appliances of the home, due to a breakdown of normal wear and tear. So, like Tyler said, we have coverage for the seller, and then coverage for the buyer. For the buyer plan, it is definitely more inclusive, and we really offset the liability to the new buyer, because they don’t know the working condition of the systems and appliances.

Heather-So, our coverage will cover the air conditioning, heating, electrical, plumbing, garage door openers, appliances, even lock re-key, subterranean and termite spot treatment, washer and dryer, the list seems like it goes on and on. We have a lot of inclusive coverage with 2-10 Homebuyers’ Warranty, but ultimately the intent is so that the homeowner doesn’t have to really pay a whole lot of money out of their pocket. There’s a *$60 deductible, which is the driving fee for the service provider to have them come out, so we diagnose it, and as long as it’s a breakdown of normal wear and tear, then it would be repaired first, and if we can’t repair it, then we replace it.

Tyler- So we paid $60 to get it brand-new.

Heather- Yeah. It was great.

Tyler- It was an HVAC, so heating and cooling in one. So for $60, we got a brand-new unit out there.

Heather- Yeah yeah. And for the seller, too, we have more limited coverage, but it’s a gift for the seller, basically, saying, if you include our plan for the buyer, because studies show homes sell faster when a buyer plan is purchased for the buyer, because the buyer obviously doesn’t know the history of the systems and appliances, we do have coverage up to $6,000 for our seller, too, for electrical, plumbing, appliances. They can also, for an extra cost, they can get some air conditioning coverage, too.

Tyler- The AC being in Arizona, when it’s hot, I mean, the AC is always the big question, and if agents, I think a lot of times agents don’t know this, in terms of how to properly do it, because if a unit’s not certified, it can cause some problems, and I’ve learned this lesson the hard way, so when you’re representing the buyer, you always want to make sure that the unit’s certified, so if something goes wrong, it’s covered, so talk a little bit about that, because that’s a step that’s actually missed.

Heather- I would love to. Yeah, and this all comes down to this page right here, which is the terms and conditions of any home warranty company. We all say, regarding the working condition of the system, it all has to be in good and safe working order, and in order for this home warranty to work properly for the homeowners, or for the seller, or for the buyer.

Tyler- And that’s also to protect 2-10, because there’s always people who wanna try to trick the system, so I get why that’s to be done.

Heather- If we didn’t have limitations, then we’d be a home rehab company, and then we wouldn’t be in business.

Tyler- Exactly.

Heather- And I’ll put this flier up on the link where this video’s gonna go so you can read through that.

Heather- The biggest failure, the most expensive failure, is air conditioning. So we found that we wanted to be the only home warranty company that came forward with a program to help protect all parties involved in the transaction, whether it’s the sellers’ side or the buyers’ side. And so what this is, it’s ultimately regarding the air conditioning, and it’s called an HVAC Certification, or an HVAC Inspection, if you will, and so what we do is we send out a company to do a 59-point inspection, a thorough inspection, to just make sure that all is in good and safe working order. We need our inspectors, they’re very important, but if they’re not a licensed HVAC professional, they’re not allowed to open up the system and look in, like an HVAC professional would, so that’s why we needed this.

Tyler- As the buyer’s agent, it’s really important to do this, too, because when you’re negotiating repairs, it’s not covered under the home warranty unless it’s working.

Heather- Exactly.

Tyler- So we just had one where the coils were dirty and it needed about a thousand dollars’ worth of work. Well, the home warranty’s no good unless the seller would’ve done all that stuff. So we were able to negotiate to get everything done, so we had a unit that was actually certified so the home warranty could cover it. So there’s a lot of cool things as to why to put a home warranty in the contract, because when it comes inspection time and asking for those repairs, it’s an easier way to get things done, so.

Tyler-Anyway, we wanted to keep this short and sweet, I just wanted to bring Heather in here. She’s got a service agreement right here and I’ll link it down below, on this video, so if you’re a buyer, you definitely want a home warranty, and as a seller, it’s nice to put one in place just so you’re covered during the sales process.

Heather- And call me, if you have any questions and you want to know about how it works. I’ve been doing this for six years here in our area, and we’ve just had great success, very robust coverage, so I wanna make sure that my homeowners are happy, whether they’re sellers or buyers.

Tyler- She’s great, she’s always available, and if there’s something, over the weekend, I had a client that, her fridge went out, and Heather was on top of it and got it done.

Tyler-  Anyway, thanks for watching, and get a home warranty!

Heather- Thank you.

Click Here: Service Agreement

*$60 deductible was at the time of this video and subject to change.

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