Today we talk with American Home Shield Warranty expert Kristee Golan about home warranties, coverage & how they can be beneficial. Can having this warranty help offset the cost of a major furnace repair? Yes. Listen for more details.
Today we are going to talk home warranties with local expert Kristee Golan of American Home Shield. Welcome Kristee.
Thank you. Thanks for having me.
Glad to have you. So tell us a little bit about home warranties. How they work and how they can be of a benefit to somebody who may be purchasing a home or thinking about selling a home.
Absolutely. Well, a home warranty is a one year service agreement that clients can sign up for, which protects their major systems and appliances in their home for normal breakdowns that'll happen due to normal wear and tear. With us, we really talk about warranty as a benefit to the client in terms of that budget protection and really ensuring that they have that peace of mind down the road. Especially with first time home buyers really looking at the amount of money that they're putting into the home upfront and not having that expense down the line and having that peace of mind with a home warranty. So that's really the budget and the peace of mind is the number one.
Well, Tony didn't we talk about that back, I want to say maybe a five or six podcasts ago, we were talking about one of the major things that buyers didn't anticipate when they purchased their home or maintenance and repair costs. They were way more than they anticipated. I think this goes exactly to that. It's peace of mind so that you don't have to worry if the furnace quits on you, you're not going to spend $500 or a $1,000 to get it back up and running.
Right. Absolutely. Home warranty doesn't cover everything out there. I mean, really gives that, that buffer for those large expenses that'll happen down the road when you're talking about your HVAC giving out or your water heater giving out. Really giving that peace of mind to know that they're protected to have that coverage.
Yeah, we did talk about that. I'm sorry. Our industry is partially blamed. One of the things we do is we get folks so laser focused on the money needed for a down payment, money needed for closing costs and that check that they're bringing to the closing that all those other very real things they kind of lose focus on that. And next thing you know that home buyer is purchasing that unexpected water heater or furnace repair or whatever.
Mm-hmm (affirmative) With us, I always say to my clients when I'm dealing with the homeowners, when I'm dealing with the realtors, I always talk about it's not if it's going to happen, it's when going to happen. And while we don't know that variable, an average of two claims happen within that first year of home ownership. And I know I think back to when I purchased my first home 15 years ago with my husband, we put all of our savings, everything that we had built up into that down payment for our home. The home that we purchased, there was a home warranty offered on it. And having that peace of mind, I believe we had three or four service claims the first year of homeownership.
The funny thing about that is looking back at that story now, working for American Home Shield, I had an American Home Shield warranty 15 years ago on my home. So kind of crazy how it all comes back into play.
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