What Is a Home Service Contract, or "Warranty?"
The National Home Service Contract Association (NHSCA) defines home service contracts, or “warranties,” as contracts offering repair, replacement or service for major appliances and systems that break down as a result of “normal” use. Home service contracts, according to the Association, are a significant means of savings for homeowners, with coverage ranging from disposals and ovens to HVAC systems.
“The wholesale value of these contracts easily exceeds $1 billion in savings to consumers annually,” said Mike Bartosch, president of the NHSCA, in a recent statement.
“If a system or appliance stops working, contact your home service contract provider,” Bartosch added in the statement. “If a home system or appliance is damaged by a falling tree, catches fire, or is subject to vandalism, contact your insurance agent.”
Real estate professionals often offer home service contracts—in this case, “warranties”—to home buyers and/or sellers. The term “warranty,” according to the NHSCA, refers to the seller’s action of purchasing a service contract for the buyer should issues arise during the first year of ownership. If you’re a buyer or seller, consult with your real estate agent or broker to learn more about the options available to you.
Home Service Contracts are not commonly used in Florida particularly Fort Lauderdale or Broward County in general. But if you are buying a foreclosure or short sale or any distressed property it might be something you want to look at, specially for the first 2 to 3 years of ownership. That's typically when things starting to show up that you, your inspector or your agent can't anticipate at the time of purchase.
For more information, Call Marina or Kathleen at 954-914-8056.
Source: National Home Service Contract Association (NHSCA)
Reprinted with permission from RISMedia. ©2016. All rights reserved.
5 Maintenance Skills Every Homeowner Should Know
Home Flipping Hits Six-Year High
New Construction: How Building a Home Can Save You Money
Gen X and Homebuying
What is My Home Worth?