I get monthly newsletters from several of the home warranty companies that we use in our real estate business. Each one of our traditional transactions includes a home warranty as part of the sale process, which usually benefits the buyer the most, but we purchase them even as a listing broker to keep the property running smoothly while on market, and during the sale. It also to help minimize issues that come up on inspections and after the sale allowing us to help a seller maximize their sale proceeds.
Here is a letter from Old Republic Home Warranty and their local sales rep about what “normal wear and tear” is defined as and how it’s handled in a claim:
Dear Rebecca,
As you well know, a real estate professional is also an educator. Teaching clients about home ownership and managing their expectations may lead to greater client satisfaction, and in order to take full advantage of the budget protection provided by a home warranty, they need to understand what’s covered… and what’s not.
Our Plan clearly lists our limitations of coverage””no magnifying glass required! Home warranties are designed to cover systems and appliances that become inoperable due to normal wear and use, and while this isn’t the only limitation, it’s an important one.*
What does “normal wear and use” mean for your clients? Let’s say your client pours Plaster of Paris down the bath sink drain and it hardens in the pipes, causing a stoppage. This is not an example of normal wear and use, and a Home Warranty Plan would not cover the plumbing repair. The same holds true for garbage disposal blades jammed by paper clips or bobby pins, or a dog urinating on an air conditioner condenser, damaging the coils and causing them to leak (bad Fido… no biscuit!).
Old Republic Home Protection’s Service Agents ask Plan Holders questions about their service request to determine whether a system or appliance became inoperable due to normal wear and use before dispatching a Service Provider. Our goal is to help Plan Holders avoid paying a Trade Call Fee on an item that isn’t covered by the Plan, and offer solutions, when appropriate, to save them time and money, so they can get back to their busy lives.
Helping your clients understand how a home warranty works, what it covers, and the limitations to coverage, may lead to greater client satisfaction””and more repeat and referral business for you!
*Please see Plan for complete coverage details.
Wishing you continued success,
Joe Rivas
