Decide If a Home Warranty Is Right for You
If you’re in the market for a new home, you may have heard about home warranties or been asked if you’d like to purchase one. Among all the home-buying jargon you’ll be faced with on your real estate journey, “home warranty” is certainly a term you’ll want to research and learn more about before making a decision. Read on for more information about what a home warranty is, what it’s designed to do and how it may (or may not) be helpful for you in the future as a homeowner.
What is a home warranty?
A home warranty is a contract between a homeowner and a warranty company that provides discounted repair or replacement services on home components like plumbing, electrical systems, HVAC and furnaces. A home warranty can also cover home appliances and add-ons like swimming pools, dishwashers, refrigerators, stoves, garbage disposals and washers/dryers. A home warranty does not cover windows, flooring, walls or sprinkler systems.
It’s possible that the seller of a home may offer to purchase a home warranty on your behalf to provide assurance that if any home component breaks down, it can be fixed at an affordable price.
A home warranty can cost several hundred dollars per year, and its purpose is to cover items that aren’t usually covered by homeowner’s insurance. Pay close attention to the language in your home warranty contract: most home warranty plans will not cover repairs or replacements for components that have not been properly maintained.
How is a home warranty different from homeowner’s insurance?
Homeowner’s insurance provides financial protection for you, your home and your belongings in the case of extreme events, like fire, wind or snow, as well as property crimes like vandalism or theft. This kind of insurance provides coverage if you must repair your home’s structure, or sometimes other structures on your property, like a shed or guest house. It can also help repair or replace personal belongings.
What are the benefits of a home warranty?
The primary benefits of a home warranty are peace of mind and cost savings. You know that broken appliances or home components can be repaired at a reasonable price.
A home buyer may also feel reassured by a home warranty if they’re not familiar with how a home’s appliances or components have been maintained. A home warranty can be a good idea if you’re trying to keep costs low and if you’re not too handy with repairs.
What are the drawbacks of a home warranty?
One of the main drawbacks of a home warranty is the issue of improperly maintained appliances or components. When a home warranty company sends a repair technician to fix an appliance or system, it’s up to the technician to decide if that appliance or system has been properly maintained. If the technician determines that the item was not properly maintained, no repairs will be done. This can sometimes be an excuse to deny valid claims.
No matter which route you choose with your home warranty decision, you can be sure that South Sound Inspections will be there to provide transparent, unbiased assessments of your home’s structure and components.