New home repair policy?

[khardy57]

I moved into my house in May, and at the time I bought an insurance policy that is supposed to fix anything that goes wrong for a $55.00 charge (per event)

Today, I had an electrician come out and for $55.00 repair an electrical outlet on my back deck.

Then, I had to call the company again because of a leak in my bathroom. They didn't have a plumber in this area and told me to call one to come out and look at the situation and call them for authorization to make the repair. The plumber came, looked things over, called the company and was told that the policy would not cover the leak because the previous owner installed a drain gasket incorrectly.

I'm going to have to pay the plumber (I don't mind because this is a good guy who did work for me and my husband at the other house and I know he does good work)

But I don't understand why the policy won't pay. They said they won't do repairs if something was installed wrong. How am I supposed to know if it's right or wrong? All I know is it leaks!

This is not a new house, so I can't call the builder.

[Janet]

I've never heard of a "new home repair policy" is this something new? Only for new homes, new buyers or what?:)

[Gina]

I am a realtor and Janet what she is refering to is called a Home Protection Plan, it is offered through my company, and I guess every state or company has their own package. With my company if the seller buys this protection to offer it to their buyers it is a nice feature. The costs of this varies, for a basic plan they charge a little over $400 and is paid at closing by the seller. This covers all major applicances , furnace, a.c. unit etc. If the applicance or furnace cannot be replaced they change it free of charge. If you want to broaden the selection you pay more. This plan is what the sellers usually buy, and its a plus for it covers the sellers until they close,meaning if anything breaks or needs repairing they will come out, and the buyers get it at closing for a year from date. The buyers do have to pay a service fee of about $50.00 when they call someone in. If the sellers don't offer it, we ask if the buyers would like this plan. I personally don't push it, it has its ups and downs. But I have to offer it and they can waiver it.

As far as new construction out here, the builder usually gives a 10 yrs. guarantee on furnace..etc. appliances come with the standard year guarantee. I hope this helped you understand the process ...

[Janet]

I am a realtor and Janet what she is refering to is called a Home Protection Plan, it is offered through my company, and I guess every state or company has their own package. With my company if the seller buys this protection to offer it to their buyers it is a nice feature. The costs of this varies, for a basic plan they charge a little over $400 and is paid at closing by the seller. This covers all major applicances , furnace, a.c. unit etc. If the applicance or furnace cannot be replaced they change it free of charge. If you want to broaden the selection you pay more. This plan is what the sellers usually buy, and its a plus for it covers the sellers until they close,meaning if anything breaks or needs repairing they will come out, and the buyers get it at closing for a year from date. The buyers do have to pay a service fee of about $50.00 when they call someone in. If the sellers don't offer it, we ask if the buyers would like this plan. I personally don't push it, it has its ups and downs. But I have to offer it and they can waiver it.

As far as new construction out here, the builder usually gives a 10 yrs. guarantee on furnace..etc. appliances come with the standard year guarantee. I hope this helped you understand the process ...

Yes it helped, thanks. Always learning something new..LOL

[Ponyup]

The sellers paid for it when we bought our home. It covered all the major appliences & furnace I think for a year.