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88 in my pocket of every dollar—$888 of every $1,000 that I would’ve spent on warranties and $12 in savings, and on average, I’m going to cover the breakdown that those warranties would’ve covered.

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I just bought a home and have had a 2 10 warranty that came with the home.

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It is best to review your home warranty contract to understand specific coverage and limitations for the broken item.

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You will be very glad you did the moment that you need it.

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Have you been Bamboozled?Reach Karin Price Mueller at . Follow her on Twitter @KPMueller. Find Bamboozled on Facebook. Mueller is also the founder of NJMoneyHelp. com. Stay informed and sign up for NJMoneyHelp. com's weekly e newsletter. But the long standing relationship between real estate brokerages and home warranty providers—with regard to how compensation can be offered to practitioners—was called into question in 2008 in an informal letter from the U. S. Department of Housing and Urban Development. The letter suggested that brokers and agents could be violating the Real Estate Settlement Procedures Act if they accepted a fee for selling home warranties.

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A home warranty company will pay for the cost to repair or replace the system or appliance, as long as it has broken down from normal wear and tear.

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