Some of the most expensive neighborhoods, 2008, suddenly got discounted with the housing crash. Discounts as much as 50% weren’t unheard of, with an added bonus of a Federal Stimulus package that promised a tax credit for buying before April 2010. It was a sweet deal and tons of people took the government up on their offer. What they may not have realized is that buying a discounted house is just the start of getting a good home deal. If they want to really keep costs down, they should consider some insurance on the major appliances and systems within their home, in addition to their regular mortgage insurance policies.

Home Maintenance Insurance

The average homeowner can easily spend several hundred dollars in home maintenance costs. The bigger the house, usually the more expensive the systems, and the larger the repair bills. Home inspections can help you determine any faulty systems, but once the closing is over, those systems become your responsibility. Even if they worked fine the day before the closing and failed the day after, you get to foot the bill – unless you opted for a home maintenance insurance plan.

These plans are available before you buy the house. You can request that the home seller buy the policy to cover the house for the first year, and that way there is no gap between the time the house transfers into your name. Just make sure that the policy will transfer with the house, so that should the furnace kick out the day after the closing, you won’t be stuck with the entire bill.

What These Policies Cover

It depends on the type of policy you get, but many cover major systems like the furnace, the water heater, the air conditioner, and your major appliances, like a refrigerator, laundry, or stove. Others will cover the wiring in your home, in case there is a short. Additional coverage can be requested if you have special systems on the grounds, like a swimming pool. Many insurers will allow you to roll the policy into your mortgage payment so that when you pay the mortgage, you also pay for the policy too.

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