Every Thing Home Warranty With Russel Frans of Old Republic Home Protection

Home Warranty, Spokane, Home Buyer, Home Buying Tips, Real Estate Tips,

Every Thing Home Warranty With Russel Frans of Old Republic Home Protection

In this episode of Asking for a Friend I interview Russel Frans of Old Republic Home Protection. We discuss everything having to do with a Home Warranty. Russel has been in the Home Warranty business for 13 years and moved to Spokane in 2016 to help open up the Spokane market for his company.

Here is what we discussed.

 

What is a Home Warranty?

A one year budget protection plan to protect against the high cost of repairs and replacement of the homes major systems and appliances. With a $75 fee per occurrence.

 

How do they differ from Homeowners Insurance?

Homeowners insurance is required if you are getting a loan.

Home Warranty is optional.

Home Warranty is meant to compliment what Homeowners insurance does. 

Homeowners insurance is meant to cover the structure of the home from accidents or flooding or fires, etc. and a Home Warranty is designed for when a major system or an appliance ie. heater, dishwasher or hot water heater breaks down because it is old. So, if your hot water heater bursts and it floods your basement; the Homeowners Insurance company may be involved for the water damage, but they wouldn’t pay to replace the hot water heater, that would be on the homeowner unless you had a Home Warranty.

Would issues on a home inspection affect a Home Warranty? 

Example: You get the home inspection back from the inspector and it says the furnace has reached its life expectancy. It could last another week or 20 more years. That does not affect the warranty at all. The cost wouldn’t change. You can also renew your Home Warranty every year.

How much does it cost to get a one?

The most basic version costs $280. The average coverage costs is about $590. However, there are optional costs for different systems like air conditioners, well pumps, septic systems, spas and pools.

When would you purchase a Home Warranty?

The sooner the better because it can also cover the Seller before closing in case something were to happen before closing. The Buyer has up to 30 days after closing to purchase the Home Warranty and it would back date to the closing date.

Can someone who bought a home 3 years ago purchase one?

Yes, however instead of the closing date being the effective date it would go into effect 30 days after the payment is made with one full year of coverage.

Does it cover sewers?

A Home Warranty is designed to cover all of the systems and appliances within the parameter of the main foundation of the house so any of the sewer lines that are within the main foundation of the house are covered along with blockages within those lines. There is extended pipe leak coverage which would cover outside the main foundation of the house.

Who pays for a Home Warranty? 

They are designed to work for the buyer to make an offer that includes a home warranty. This can help the seller with after sale liability. However, in this market with the sellers having choices as to which buyers they choose. Russell is seeing a lot of realtors paying for then for the buyers. He is even seeing cases in which 2 or more of the parties in the transaction split the cost. 

What don’t they cover? 

In general it covers systems and appliances from normal wear and tear. At the end of the day things that break will have to be broken from normal usage. One thing to keep in mind is that all systems and appliances have to be in place and working when the warranty goes into effect. 

Why do only 20% of transactions include a home warranty in the Spokane area. 

There was a time before the recession in California that 96% of transactions included a home warranty. Russell thinks there is a lack of understanding of their value in relation to the cost. We as an industry need to do a better job of making sure home buyers know more about them.

How does Old Republic know a system has failed during the time of the home warranty? 

Home Warranty companies use local contractors instead of adjustors like an insurance company might use. Most home warranty companies view the transaction as a good faith process and will err on the side of the customer. However, if it is an obvious breakdown.

Where is your favorite place to eat or drink in Spokane. 

He mentioned to places that he really enjoys as a vegetarian. The first was Mizuna. While they have options for non-vegetarians he loves they options they provide. He also loves the newly opened RÜT Bar & Kitchen and mentioned the burger as his go to meal.

 

How Much Home Can you Afford? 

Tony

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