Tuesday, February 14, 2017 / by John Murdock -- CityScapeMetroGroup
Home Warranties and Why Buyers Want Them!
Lots of things you buy come with a warranty in case they break down, from cars to smartphones. But what about homes? It turns out you can get a home warranty, too.
So what the heck is a home warranty, anyway? In a nutshell, it’s a policy you pay for that covers the cost of repairing many of your home appliances if they break down.
“Home warranties provide financial protection for homeowners who might be faced with unexpected problems with their appliances,” explains Shawna Bell of Landmark Home Warranty.
Many people buy a home warranty right when they close on a
What does a home warranty cover?
Don’t mistake a home warranty for homeowners insurance, which covers your home’s structure and belongings in the event of a fire, storm, flood, or other accident. A home warranty, in comparison, will cover repairs and replacements on systems and appliances due to normal wear and tear—no calamities required.
A home warranty generally covers these items:
- Electrical systems
- Plumbing systems
- Heating and cooling systems
- Washer and dryer
- Kitchen appliances such as the oven, range, and garbage disposal
How much does a home warranty cost?
While home buyers are often required to get homeowners insurance along with their mortgage, home warranties are a fully optional purchase. Basic coverage starts at about $300 and goes up to $600 for more comprehensive plans, says Bell. A homeowner can add extras if needed, such as coverage for a swimming pool or an external well.
Although many companies offer home warranties to homeowners at any point, the best deals can often be snagged if purchased at the same time you buy the home.
“The warranty plans offered at the time of the real estate transaction typically offer the most comprehensive coverage and price points, so that’s why it’s the ideal time to lock it in,” Bell says. At the end of the first year, you usually have the option to renew your plan or bail.
Benefits for home buyers and sellers
A home warranty
A home warranty can also benefit home sellers (if they don’t have it
But not everyone thinks home warranties are worth the cost. Typically they aren’t necessary with new
What to do if something breaks
If something covered under your home warranty breaks, you just call your provider and it will connect you with a qualified contractor in your area. One thing to remember is that a home warranty does not mean you’re off scot-free; typically you’ll have to pay for a service call or a certain amount of the bill up to your deductible first.
While not everyone will think a home warranty is worth it, it is a good idea for people who lean toward the “better safe than sorry” approach when buying a home.