Home warranties provide peace of mind for homeowners that protect against unexpected repair and replacement costs. They can also make a home more attractive to potential buyers who are wary of costly surprises after closing.
Investing in an emergency fund is not always feasible but having a home warranty protection plan greatly reduces the repair and maintenance expenses. But is a home warranty really worth it?
Peace of Mind
Home warranties provide peace of mind to homeowners by reducing stress, saving money and providing financial protection. Typically, the cost of a home warranty is far less than the total repair costs for appliances and systems that break down from normal wear and tear.
The home warranty provider takes the burden of paying for expensive repairs off the homeowner and handles all the details of arranging for a qualified service professional to visit your home and address the issue. This helps alleviate the stress of unexpected expenses and lets you use your emergency fund for other priorities.
When shopping for a home warranty, make sure to compare plans from multiple providers and choose the one that offers comprehensive coverage and a one-stop shop for repairs and replacements. It is also important to talk with a representative of each provider to learn more about the terms and conditions of their home warranty plan. In addition, many new homeowners can negotiate a free home warranty from the seller as part of the purchase process.
No Waiting Period
The process for filing a claim is different with each home warranty company, but most will allow homeowners to file claims 24/7 via a call center or online portal. Once the claim has been filed, a service contractor from the provider’s network will be sent out to address the issue.
However, before purchasing a plan, shoppers should review the coverage inclusions and limitations carefully. They should also ask each home warranty provider questions about their claims and service processes to find the right fit for them.
In addition, it’s important for borrowers to note that home warranties do not cover pre-existing issues or damage from natural disasters or theft (that’s what homeowner’s insurance is for). Buyers should also make sure to get a customized quote from each company they consider, as coverage inclusions and limits might differ. For example, some home warranty companies have annual coverage limits or caps for each appliance and system that will limit how much a homeowner can be reimbursed for repair or replacement.
Unlimited Service Calls
A home warranty allows you to pay only a flat service call fee and the deductible when something goes wrong, instead of worrying about how much a repair or replacement might cost. This is a huge benefit for homeowners who want to avoid expensive surprises and save money in the long run.
It can also help you plan your budget more effectively, as most home warranties cover a large number of systems and appliances that commonly go wrong due to normal use. But be sure to get a custom quote from each provider before signing on the dotted line, as coverage inclusions, limitations and terms can vary greatly.
For real estate pros, a home warranty can be a great tool for Sellers who need to sell their property, or Buyers who are new to the area and are unsure how to deal with unexpected issues that might arise. It can also be a valuable addition to a new homeowner’s emergency fund, providing them with a safety net and access to vetted contractors they might not otherwise have.
Saves You Time
Home warranties save homeowners time by giving them a single point of contact to call when something breaks. When a home warranty company receives a call, they send a technician to the property to assess the issue and take care of it. This means homeowners don’t have to spend time getting recommendations and finding the right contractor to do the work.
A home warranty also saves people time by handling all the necessary paperwork for them. In addition, most home warranties provide coverage for appliances and systems that are already out of their manufacturer’s warranty. This is helpful for older homes where most of the appliances and systems are already in need of replacement or repair.
A home warranty can be a great investment for new buyers and sellers, especially for those who are not handy. However, it’s important to carefully review the contract and compare costs for any additional add-ons or coverage inclusions. Also, be sure to consider other hidden fees like deductibles and service calls charges when deciding whether or not a home warranty is worth it for you