Why and When to Buy a Home Warranty

Why and When to Buy a Home Warranty

When buying a home, no one ever tells you the cost of the repairs. Half the time, the agent will offer you a home warranty. The seller may be kind enough to purchase such a plan to reduce your liability when some of the figures go bust. A home warranty is a safety net to ensure that the repairs don’t catch you unawares. A home warranty is different from home insurance.

The benefits of a home warranty

A home warranty comes in to help you where you need some repairs. It works as a replacement contract for the defective fittings in your house. When a component of the heating system is faulty, a home warranty will help you either repair or replace the whole system with consideration to the extent of the damage. A home warranty covers various aspects of the house including the fancy things you have installed. Doing those repairs out of pocket can be very costly. Most home warranties cover the essential equipment and gear around the house.

Professional services

Home warranty providers have accredited service providers on call and can fix your damaged systems almost immediately. They provide peace of mind as you won’t have to deal with incompetent repair companies that are only after your money. This is very important for homeowners who do not have an emergency kitty. It connects you with the right professional service personnel who will repair your faulty system.

When buying a house

Home warranties play a big role in a sale agreement for a house. It acts as an assurance to the buyer that even though they don’t know if the appliances will work efficiently, the repair costs will not be theirs to shoulder. It is also instrumental for buyers who have spent every penny in their coffers buying the new house. Once you have spent all your money buying a new house, any new home improvement projects are likely to leave a sour taste in the mouth. Before closing the sale, a home warranty paid up by the seller ensures your stress-free living for the warranty period.

Most sellers fail to make any disclosures when selling you a house and some of the ‘minor ‘repairs you choose to undertake may blow up and become significant projects.

Limitations of home warranties

The limitations of home warranties are that the providers cannot cover items that have been neglected. When the item is not maintained correctly, it means that if they have a propensity to break down and thus, the company would assume that it is intentional. Some fishy companies will use this loophole to deny valid repair jobs. Some come with various limitations on how many repairs can be done in a year and therefore may refuse to cover some items after the limit expires.

Home warranties are relatively cheap and cannot be commensurate with the cost of repairs without such a contract. However, with proper maintenance and reasonable use and if nothing goes wrong for a long while, the value of the contract cumulatively exceeds the value of the repair. The home warranty money can be saved and put into an emergency fund for a rainy day.

When to get a home warranty

You need to be introspective and see whether you need it or not. If:

  • You are clumsy and have the resources
  • Your appliances are becoming aged
  • You live in an old house
  • You do not know how to deal with repairs
  • You are a first-time homebuyer
  • You do not have enough savings

It is advisable to get one of the best home warranties money can buy to secure your appliances and peace of mind.


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