Keeping Your Home Sweet Home Sweet: Why You Need a Home Warranty

Are you thinking of buying a new home or condo? Have you been offered home warranty insurance by the seller? Home repairs cost an average of 4% of the price of your home, but what can you do to avoid costly service calls?

Instead of paying full price when an appliance breaks, you have the option to get a home warranty. It’s a lot like a warranty for a car, providing low-cost repair and replacement options for homeowners. 

If you’re considering buying home warranty insurance, this article is for you. We’ll explain the ins and outs of getting a home warranty, and help you get started finding a warranty provider. 

What is a Home Warranty?

A home warranty is a policy that covers the cost of major appliance repair. It also typically covers plumbing and HVAC systems. Homeowners can purchase additional coverage for swimming pools and hot tubs, if necessary.

The thing to remember about a home warranty is that it’s not the same as home insurance. Home insurance is designed to cover major catastrophes like flooding, theft, and fire. 

Home warranties, on the other hand, are meant to cover the appliances and systems of the home. The coverage can vary according to the policy, so you should try to find a warranty with complete home coverage. 

A home warranty typically gives homeowners one year of coverage on appliances and two to ten years of coverage on HVAC, electrical, and plumbing systems.

If you’re thinking of buying a home warranty, check to see if you already have coverage. Some credit cards actually extend the manufacturer’s warranty for customers who buy major appliances. 

Is a Home Warranty Worth It?

In addition to buying home insurance coverage, you should include a comprehensive home warranty. You never know what’s going to break, and you will kick yourself if you don’t have adequate coverage. 

Companies like Select Home Warranty will send a repair person to your home if any appliances or home systems break down. You can expect rapid response times from certified and screened home repair companies. 

You may have to pay a small deductible to have the repair done. The cost, even with paying the deductible, would still be less than what you’d have to pay without the home warranty.

If you’re buying a new home, your appliances should have their original warranties. It’s still a good idea to get a home warranty because even new appliances can break down. 

Home warranties are good ideas for homeowners who are buying condos and homes that are more than 10 years old. If you’re offered a home warranty policy by the seller, it’s probably a good idea to accept.

The Risks of Skipping a New Home Warranty

If you don’t get a home warranty, you could be setting yourself up for large repair bills. It’s worth taking the time to find a reputable home warranty company in order to get the best deals.

When you get your home or condo inspected before purchase, make sure that you’re inspecting for mold. A home warranty or homeowner’s insurance may not cover mold infestations.

If you can smell mold or see it in your walls, you might want to reconsider buying that property. Mold remediation can be expensive, and the mold could affect your HVAC and plumbing systems. 

Overall, it’s a good idea to make sure that you’re covered with a home warranty. The money that you save on repairs can be used for investments, vacations, or expanding your home. 

It’s important to find a home warranty company that has a good rating with the Better Business Bureau. Take your time and search for a company with good reviews and a low rate of customer complaints.

How to Find the Best Home Warranty Company

When you’re searching for the best home warranty company, make sure to ask for the most coverage possible. Some home warranties don’t include washers and dryers. Others don’t cover refrigerators and HVAC systems.

Chances are, your appliances will not break down, but what if they do? You could opt for the lowest-cost coverage, but make sure that you know what your warranty covers. 

Most home warranties will cover repairs to ovens, microwaves, toilets, and water heaters. However, they may not cover septic systems, water pumps, and outdoor irrigation systems. 

To get started on finding a home warranty company, you can just do an internet search for companies in your area. If you don’t find a local warranty company, look into larger companies with good reputations. 

Keep in mind, you may not be able to pick the contractor who does your repairs. The company that issues the warranty policies will probably have their own preferred service providers. 

How Much Home Warranty Insurance is Enough?

Home warranty insurance starts at around $300 and could go as high as $500 per year. Make sure that you’re buying a policy that will cover as many appliances and home systems as possible. 

It may seem expensive to carry a home warranty policy, but the cost of home repairs can be prohibitive. To fix your home’s plumbing, you could be looking at a final bill of more than $10,000. That’s without a home warranty. 

If you’re on the fence about purchasing a home warranty, talk to your local warranty company. Ask them about response times, overall cost, and who they use for contractors.

Is It Time to Buy a Home Warranty Policy?

It’s important to have comprehensive insurance and warranty plans. Everyone’s excited to buy their own home, but maintenance costs can break the bank.

The best time to buy home warranty insurance is before you move into your new home or condo. That way, you have coverage from the moment you start living in your new digs.

If you’re buying a home and the seller is paying for the home warranty, you might want to see if you can expand your coverage before the sale is final.

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