For many homeowners, getting a home warranty is one of the best ways to get peace of mind. Unfortunately, not all home systems and appliances are durable, so if you want to avoid paying for costly repairs from time to time, you may want to consider investing in a home warranty plan.
A home warranty policy covers a variety of appliances and home systems, and is very useful especially for first-time home buyers who don’t have that much experience with taking care of a home.
Thinking about getting homeowner’s warranty insurance? Here are a few important things you need to know.
Purchasing home warranty
Depending on local customs, it is either the home buyer or seller who will be required to pay for home warranty coverage. In most areas, it is the seller who usually pays for the coverage, as it’s something that works to their benefit – after closing, the buyer won’t bother the seller in case something breaks. Some real estate agents also provide buyers with a home warranty plan at closing.
Benefits of having a home warranty
Like other types of warranties, a home warranty serves as your protection against expensive and unexpected repair fees, giving you peace of mind. It acts as a buffer for homeowners who do not have an emergency fund. Getting a home warranty is a smart move especially for people who don’t consider themselves to be handy or those who don’t want to be go through asking assistance from a contractor in case of a problem. A home warranty is also ideal for homeowners who purchase very expensive high-end appliances.
For home sellers, offering an already paid one-year home warranty along with the purchase gives them protection against any issues or complaints a buyer may have in the future after closing the sale. However, sellers who offer a home warranty aren’t exempted from the legal requirement to disclose any existing problems with the property.
The cost of home warranty
Depending on what the plan covers, a home warranty usually costs somewhere between $300 to $500. There are some companies that hold special sales, with plans offered at discounted rates or additional coverage at standard prices.
A policy is prepaid for a single year and will need to be renewed by the homeowner, often for a slightly higher fee.
There are many different plans available, so you’ll need to find out about what each specific plan covers. Consult your agent in case you want to avail of upgrades. Take note of whether a home warranty company covers repairs to make certain appliances or types of systems compliant with any new regulations in your area.
Keep in mind that not all home warranties are all-inclusive. While most policies cover electrical, plumbing, and HVAC, some plans might not include coverage for items you may consider an appliance or system. Some basic policies for example, cover septic systems while others do not.
Talk to the home warranty company to make sure you get the type of coverage for everything you need, and make sure to read the entire policy thoroughly before you sign up.
Replacement or repair
In most home warranties, items that are considered too expensive to repair can instead be replaced by the provider. In this type of situation, the home warranty company might offer only a percentage of the total value of the item in question, requiring you to spend more to replace the same model you owned.
How a home warranty works
While different home warranty plans have specific types of coverage, most plans operate in a similar manner overall, with slightly different terms and conditions.
- The homeowner calls the home warranty company in situations where an appliance or system malfunctions or ceases to operate.
- The company gets in touch with an associated provider.
- The provider calls the homeowner to schedule an appointment.
- The provider finds a solution to the issue. In case the system or appliance cannot be repaired, depending on the plan’s coverage, the warranty company will provide compensation for the replacement and installation of the item.
- The homeowner pays a service fee, which usually costs less than $100.
In some cases, a service provider might find a reason to deny a claim. In this type of situation (or if you’re disappointed with the service), you can ask for assistance from your real estate agent, who can work towards a resolution with the home warranty company.
Need more information on getting a home warranty plan? Get in touch with the top Pierce County real estate resource! Call Lori Lewandowski today at 253-617-5922.
Important Things to Consider Before Buying a Home Warranty
When you purchase a home, there’s a good chance that you’ll be offered a home warranty, which covers you from the expense of repairing or replacing important appliances and systems in your home. You may not actually need a home warranty but it could be highly beneficial. Before purchasing a policy, however, it’s best to know exactly what you’re getting from one. In this blog post, we list down the most essential things you need to know about a home warranty, including what it covers, its limits and exclusions, the costs you can expect, and the pros and cons of getting one. Read more…
The difference between home warranty and home insurance
Every homeowner wants to protect their home in the best way they can. One of the most common ways to do that is by getting a home insurance policy. Aside from being a requirement by many lenders, a home insurance policy offers protection in the event of damages to or loss of your property. Another way to protect your home is by getting a home warranty. Unlike home insurance, home warranties offer repairs or replacements for home systems (HVAC, plumbing, electrical wiring) and major appliances. In this article, we discuss the difference between a home insurance policy and a home warranty policy, and how these can be beneficial to you. Read more…
Myth Busters: Home Warranty Edition
Your home is your castle, and as a homeowner, you are obliged to protect it through any and all means. One of the most popular ways to do that is by getting a home warranty. However, negative stereotypes and common misconceptions of this document have brought about fear and suspicion among many sectors. With the refusal of some to get home warranties, their homes become vulnerable the moment any appliance or feature breaks down. It is during that moment when the home warranty should step up and move in to remedy the situation.
In this article, we help set the record straight and discuss the truth about the muchattacked home warranty. Read more…
How to know if you need a home warranty or not
Home warranties provide a veil of protection to your home systems and appliances. Should they break down due to old age or continued use, your home warranty policy can cover the costs for repairing or replacing them. While these may give many benefits to a homeowner, there are several instances when a home warranty does not merit much use.
In this article, we go over the best situations when getting a home warranty becomes a wise decision. This could be if you’re buying an old home or you simply want peace of mind. We also discuss circumstances when a home warranty may not be ideal, examples of which include buying new construction or having the freedom to choose a contractor. Read more…
How to pick the best home warranty for you
In homeownership, the house itself isn’t the only investment you will make. The appliances you purchase as well as the systems you install also become a part of it, which is why it makes sense for most people to get a home warranty plan or two. It protects homeowners and their families from shouldering unexpected expenses in case your appliances break or malfunction. The challenge, however, lies in finding the right home warranty plan and the right provider for you. Click here to learn about five things you need to carefully consider as you look into home warranty plans available in your area. Read more…
Repairs that are covered by your home warranty
The whole point of a home warranty policy is to give you peace of mind that repairs can be made in case anything breaks down. However, warranty policies can differ in their specific wording, which means you must choose a top-rated company. In general, you can expect to be covered for HVAC, plumbing, appliances, electrical work, and rekeying services. The advantage of having a well-rated home warranty policy is the money you’ll save on repair work. Therefore, it is vital to take out a home warranty policy you understand and the coverage that goes with it. In this article, you can learn about which specific repairs can be done with a home warranty. Read more…