A home warranty is a form of insurance that pays for the cost of repairing or replacing home appliances and systems that break down due to regular use and age. It’s not the same as homeowners insurance, which pays you if your house and belongings are damaged by things like fire, theft, or a natural disaster.
Homeowners, homebuyers, or sellers can acquire home warranties, and the terms are usually one year with the option to renew annually. The price of a home warranty will change based on factors such as the level of coverage desired, the home’s location, and the home warranty company itself. However, the typical annual cost of a basic home warranty is $350 to $600.
A home warranty’s primary function is to ease homeowners’ minds by shielding them from the financial burden of sudden appliance or system failure. Home warranties often cover heating, ventilation, air conditioning, electrical, plumbing, and water heater systems, as well as kitchen equipment like ranges, ovens, refrigerators, and dishwashers.
A home warranty’s principal advantage is the money it can help homeowners save over time. If a homeowner’s covered appliance or system goes down, all they have to do is pay a small service fee (often $85 to $100) and the specialist will come out and fix it or replace it. The homeowner would be responsible for the entire price of the repair or replacement without a home warranty, which can add up to a significant sum.
A home warranty can help homeowners save both time and money. If a covered appliance or system breaks down, all the homeowner has to do is call their home warranty service. The service provider will then dispatch a skilled technician to investigate the issue and provide guidance on how to fix it. The homeowner doesn’t have to go through the hassle and inconvenience of trying to find a reliable expert on their own.
Everyone wants to know…
An added bonus of home warranties is the rise in property value. Providing a home warranty might increase interest in your home from potential buyers. It helps reassure purchasers that they won’t have to shell out money for sudden repairs or replacements of the house’s systems and equipment. Offering a home warranty can be a great way to attract buyers and perhaps increase the selling price of a house.
In addition to covering the expense of repairs and replacements, a home warranty may also provide the owner with other benefits. Some companies that issue home warranties, for instance, make themselves available for homeowners at all hours of the night and day. Some may assist homeowners save money on new purchases by providing discounts on appliances and other home systems such as A/C, furnace, water heaters and the like. Homeowners may keep their properties in good shape and avoid costly repairs by following the advice of these service providers, who also offer suggestions and guidance on house maintenance.
Selling on your own?
But keep in mind that home warranties only cover certain things. Common limits and exclusions include not covering certain appliances and systems. Some home warranties, for instance, won’t pay for repairs on defective appliances or systems that previously existed before the warranty was acquired. Some home warranty plans further stipulate that only authorized service personnel be called in to make repairs, and that only certain makes and models of appliances and systems be purchased for replacement.
In conclusion, a home warranty can give homeowners some much-needed relief by covering the cost of unforeseen damages to their house’s appliances and systems. In addition to increasing a home’s resale value, they can save homeowners money, time, and hassle. Homeowners should do their homework on home warranty companies and plans to be sure they are adequately covered and that there are no unpleasant surprises or hidden fees.
Time to talk to a REALTOR?
