When purchasing a home, most buyers must make a down payment, remit insurance premiums upfront, and pay closing costs. Those expenses frequently drain the buyers’ finances and make paying for routine expenses difficult. That’s when home warranties provide the most value. However, even buyers with plenty of extra cash available often find that a home warranty provides peace of mind. Having adequate protection in place allows property owners to rest easy knowing they won’t face significant repair or replacement expenses for covered appliances and systems.
What Is a Home Warranty?
Before shopping for a home warranty or blindly accepting the recommendations of a real estate agent, understanding what a home warranty is and how it protects a property owner is always essential. First, a home warranty is a contract between a service provider and the homeowner where the provider agrees to provide specific repairs or replacements of home appliances and systems. Coverages vary depending on the company providing the coverage, which means property owners need to read the contract to ensure the appliances or systems in their homes are covered. If you’re considering a homeowners warranty, reading the fine print of a contract is crucial.
What Appliances or Systems are Covered?
Virtually every service provider covers basic kitchen appliances with their basic plans, but it’s essential to see exactly which ones are covered or excluded. As a rule, policy upgrades allow property owners to obtain coverage for all appliances. Advanced protection plans also cover heating and cooling systems, plumbing, and electrical systems. Review a provider’s offerings before deciding which option best meets a specific owner’s needs.
How Much Do Homeowners Warranties Cost?
Again, the costs vary depending on the provider, the age and location of the home, and the appliances and systems covered. Basic plans often start at under $20 per month, but adding coverage boosts that cost significantly. However, homeowners can customize their protection plan to meet their needs without overpaying for the coverage. Most plans offer convenient monthly payment plans to ensure property owners have better control over their budgets.
What Advantages do Home Warranties Provide?
As already noted, having adequate protection in place allows homeowners to enjoy peace of mind and security knowing they won’t need to pay the high cost of repairing or replacing covered appliances and systems. However, there are other advantages property owners enjoy when they have a home warranty. For example, they won’t need to shop for a repair specialist if a problem develops. The home warranty provider handles locating and screening repair experts, so homeowners won’t face that issue.
In addition, homeowners without repair skills won’t try fixing non-functioning appliances and systems themselves. That removes the need to buy tools and parts only to find out the problem isn’t repaired properly after time and money are invested. Repair experts already have the equipment and expertise to complete repairs correctly and quickly, which reduces downtime for household members needing to use the appliance or system.
Who Should Have a Home Warranty?
First-time homeowners are often encouraged to purchase a home warranty, as that protection ensures they won’t need to pay for costly repairs or replacements during their first year of ownership. However, even people who’ve owned other properties frequently opt for a home warranty when they want peace of mind knowing any issues will be handled quickly and professionally.
