Sound Off:

Are home warrenties worth it?

A: In 2020, I discovered that many home warranty plans offer a rekeying service, allowing the buyer to have the locks changed. Locksmiths can charge between $ 100 and $ 200 to rekey a house, nearly half of the typical $ 400 home warranty policy.

Since we believe that the rekeying service combined with the other provisions in the home warranty plan are so useful, my team now pays for the home warranty as a closing gift.

Typical homeowners policies cover the structure, but they may not cover appliances and components such as plumbing, ducting, electrical, hot water and heating systems. Home warranty policies are useful because they cover these items and they provide a lowcost way to avoid an unplanned expense, such as the replacement of a broken appliance. The most common scenario involves either a dishwasher or a dryer that breaks down after the buyer moves in.

For the $ 75 cost of a diagnostic house call by a prescreened technician, one can have the appliance either repaired or replaced.

A home warranty policy may not be needed on a fixer upper that will be extensively renovated with all new systems or a newly constructed home that already has the builder’s 10year structural warranty, appliances with oneyear manufacturer warranties and a fit and finish warranty from the builder.

John Solaegui, Compass, 4159990673, John@havengroupsf.com.

A: Buying a home is a major investment and many buyers use most of their available cash to complete the purchase. Plumbing, electrical and heating issues, including breakdowns of the hot water heater, furnace and appliances, can be costly at a time when significant assets have been invested in your home.

A home warranty can make your life less stressful at a relatively low cost. It is important to realize that the package is not actually a warranty, but rather a service contract that promises to repair or replace covered damaged appliances and systems with a small deductible. Various packages of coverage are available. Sellers can also purchase coverage for issues that may arise from the listing to closing dates, in addition to one year of coverage for the buyer commencing at closing. We usually recommend that buyers consider purchasing a home warranty with the exception of new construction, when appliances, and often the property itself, are covered by warranties. We always review the importance of a home warranty with our buyers and sellers and, as a general rule, you cannot go wrong by purchasing a warranty to give an extra sense of comfort and security.

Bernie Katzmann, Vanguard Properties, 4159066000, bernie@vanguardsf.com; Mike Shaw, Vanguard Properties, 4153084281, mikeshaw@vanguardsf.com.

A: It is customary in the Bay Area for home sellers to provide a home warranty to the buyers. A home warranty is not the same as homeowner’s insurance. A warranty covers most appliances or major home systems. Coverage will vary according to the type of warranty plan provided.

A basic home warranty covers and insures the functionality of heating and cooling, plumbing and electrical systems and appliances, such as water heaters, dishwashers, stoves, garbage disposals or builtin microwave ovens. Coverage may be upgraded to cover other appliances like washers, dryers, refrigerators and even garage door openers.

Buying a home warranty provides peace of mind to sellers that once their home is sold, they don’t have to worry about potential disputes with buyers concerning the functionality of fixtures. As a buyer, the policy ensures that if covered appliances fail to function at any time within the coverage period ( typically one year) they will be repaired.

A home warranty is equally beneficial for both seller and buyer in a real estate transaction.

Jane Smith, Dudum Real Estate Group, 9259981914,

janesmith@dudum.com.