Home Warranty
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Benefits of a Home Warranty
When you buy a home, it may come with a home warranty or you may have to buy one. If the home comes with one, it will most likely be good for a year. From then on, you will need to make the decision of whether or not you want to keep making payments on it.
Either way, at some point you will need to ask yourself, “Is a home warranty right for me?”
This article will discuss what a home warranty is and the benefits it can offer helping you make an informed decision.
What is a Home Warranty?
A home warranty is a warranty that covers your home’s systems. It typically covers kitchen appliances, water heaters, plumbing, heating and electrical systems, sump pumps, whirlpool tubs and ceiling and exhaust fans and costs $350 to $500 a year.
Extended plans can include things like a washer and dryer, an air conditioner system, a refrigerator, garage doors, pools and septic systems. This will add $100 to $300 to the premium.
Insurance will not fully cover the cost of the repair. Homeowners are likely to pay a service fee of $50 to $75, but for the most part, it will still be worth it considering it will cover an otherwise expensive repair.
Benefits of a Home Warranty
A home warranty provides several benefits. Beyond saving buyers a considerable amount of money on repair expenses, it also saves them the time and hassle of finding a reliable repair person. The insurance company takes care of that.
The service provided also tends to be round the clock and flexible to work around the homeowner’s schedule.
Beyond benefitting the buyer, a home warranty can also benefit the seller. A seller can include the warranty in the purchase to make the home look more attractive. The buyer will feel like they are getting more of a deal and they will feel confident knowing the home has been taken care of.
The insurance will also cover any repairs that may come up during the process of the sale. This way, new damage will not postpone the sale or reduce the asking price. This makes the sale run more smoothly overall making the buyer’s and seller’s agents happy as well.
Cons of a Home Warranty
For the most part, a home warranty is beneficial. However, there are some things a homeowner will want to be aware of.
For instance, there may be circumstances where the insurance company may decide the warranty doesn’t cover damage. They may try to say the appliance wasn’t properly maintained, wasn’t installed correctly or is just too old to qualify for service.
Homeowners may also want to hold off on a warranty if they have newer appliances that are not likely to break down and are still covered by their manufacturer’s warranty.
A home warranty isn’t perfect but it’s a good option for most people, especially those buying older homes.