If you’ve just negotiated a contract, you may have heard the term, “Residential Service Company (RSC).” An RSC (formerly referred to as a home warranty) is also known as a Home Protection Plan. This is completely different than the Homeowner’s Insurance your lender is probably asking you for.
HOMEOWNER’S INSURANCE: Homeowners insurance covers major perils such as fires, hail, property crimes, and certain types of water damage that could affect the entire structure and/or the homeowner’s personal possessions. A home protection plan/home warranty does not cover these perils.
HOME PROTECTION PLAN/HOME WARRANTY: These are available to home buyers and current homeowners to help cover the repair and/or replacement of some key elements in a home. If you’ve just closed on your new home or are about to close on a home, the last thing you’ll want to worry about is fixing anything for a while.
Home warranty companies have agreements with approved service providers (contractors). When something that is covered by a home warranty breaks down, the homeowner calls the home warranty company, and the home warranty company sends one of its service providers to examine the problem. If the provider determines that the needed repair or replacement is covered by the warranty, he/she completes the work. The homeowner only pays a small service fee (you will usually have an out-of-pocket charge of $50-$100 per service call).
Basic coverage typically covers the maintenance, repair, and/or replacement of appliances, A/C and Heat, Electrical, and Plumbing.
Additional coverage may include re-key service, pool equipment, refrigerator, washer/dryer, lawn treatment, carpet cleaning, etc… Each company offers different coverage, so it’s important to shop and ask questions. Determine what’s most important to you in a Home Protection Plan and select a company that suits your needs and your budget.
If you’re involved in a Real Estate Transaction and have an awesome REALTOR®, chances are he/she negotiated an allowance for you to select a Residential Service Company of your choice! If you choose a plan and/or an upgrade that’s priced above the negotiated allowance the difference can be added to your closing costs on closing day.
HOME PROTECTION PLANS
- If you want the flexibility of hiring your own contractor, you may want to look into America’s Preferred Home Warranty (APHW). This unique way of offering service works well for properties that are outside city limits and/or for homeowners who already have their favorite service contractors.
- If you’re looking for rekey service and garage remote re-programming you may want to look at OneGuard. They also cover lawn treatment, carpet cleaning, and window cleaning! Check out their website for more details: ONEGUARD HOME WARRANTY.
- Looking for peace of mind? Take a look at “Super Home Warranty”
“Super is subscription care for the home that covers our members’ repair or replacement of appliances or systems. Pick your plan, sign-up, and rest easy knowing that we’ve got it from here. After all, the last thing you need when something breaks is a bunch of drama.”
- Landmark Home Warranty also offers rekey service and is known for its customer service.
- Here are a few more customer favorites: Home Warranty Options 2018
- For an expanded list of Residential Service Companies licensed by the Texas Real Estate Commission, please visit the RSC list in Texas.
*PLEASE NOTE: Sometimes real estate brokers will receive compensation from Residential Service Contract/Home Warranty companies in exchange for marketing their programs*
The Residential Service Contract providers provided on this blog are a resource for Texas consumers. Plans, prices, and business statuses may change without notice. It is up to the consumer to shop plan options, verify information, and select an appropriate plan.
BLOG PAGE UPDATED: 11/16/2022
Val J Aranda, REALTOR® & Certified eXp University Mentor
“Coaching Texas Home Buyers and Sellers since 1998”
A Wonderful Life Real Estate Group
Brokered by eXp Realty, LLC
Call/Text: 210-378-5987
Perfecthomefinder@gmail.com
http://www.aWonderfulLifeRealEstateGroup.com
If you still have questions about the home buying process, I am at your service SEVEN DAYS A WEEK! I keep my phone on after 5:00 pm to help accommodate your busy work schedule. I’m “on-call”, even after everyone else clocks out!
Texas law requires all real estate license holders to provide the Information About Brokerage Services to all prospective clients. TREC’s Consumer Protection Notice.
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