Home Protection Policies

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Home Protection Policies

Dear Phyllis,

We have worked with the same real estate agent several times over the last two decades. On our most recent purchase, he asked the seller to offer a home protection policy. Before closing escrow, he explained that often these companies don’t cover much. He also told us that when they do offer coverage, the tradespeople they send out are typically subpar. We followed his advice and accepted the seller’s $750 credit instead of this insurance. After we closed, we learned the pool skimmer was leaking and needed replacement. The cost to demolish the existing skimmer and replace it is over two thousand dollars, well above the $750 credit. I am not angry with our agent, but I feel he gave us some really bad advice. What do you think our next move should be?

No pool envy here

Dear No Envy,

Home protection plans, also known as home warranty plans, typically cover the cost of repair or replacement of the working parts (mechanical and nonstructural components) of a home during the first year of home ownership. Limited coverage of the plumbing, electrical, and heating systems is generally offered. Basic coverage typically includes built-in kitchen appliances and garage door openers. Roof, pool, and spa equipment and central air conditioning coverage are also available for an additional charge. When the company’s repair person makes a service call, a service fee of approximately $75.00 applies, for which the new buyer is responsible.

Home protection plans can be an asset as they enable the buyer to keep their first year’s out-of-pocket expenses to a minimum. However, I agree with your Realtor that many of these tradespeople are subpar. I recently had a client whose wife was afraid to be alone in the home with the repairman, as he was angry and yelling. My client came home from work to ask him to leave. He told me they would never use this insurance policy again. I asked the home protection company to cancel the policy and to refund the buyer, which they did.

I had another buyer who, after her first experience with an inexperienced repairman, would ask the name or company name of the repairman. She would “Yelp” them before they came to the home and refuse them if they had fewer than four stars. Finally, the home protection company allowed her to select her own tradespeople for repairs.

I checked with a home protection company I often use, and they told me that the pool skimmer is not covered. Typically, the Home Protection Company only covers items above ground, such as the filter, heater, motor, and pump. So, it seems that your Realtor gave you some good advice.

Once you get the pool taken care of, I am confident you will derive many years of enjoyment from it. Congratulations on your new home.

Related Post: 8 Reasons Your Home Warranty May Be Denied