When you buy a new home, there are many things to think about. One of the most important is whether or not you need a home warranty. A home warranty can protect you from costly repairs down the road, but it’s not always required. This blog post will discuss what a home warranty is and whether or not you need one to protect your investment.
What Is a Home Warranty?
A home warranty refers to an annually renewable contract between a home warranty company and a homeowner where the company repairs and replaces major home appliances at a discount. Home warranties help reduce the cost of replacing or repairing home appliances or systems in case of a breakdown, which is otherwise not covered in home insurance. When a machine or system covered in the warranty contract breaks down, the homeowner contacts the home warranty company. The company repairs or replaces the device through its service providers on a small service fee.
Why Are Home Warranties Important to New Homeowners?
Unless it’s a newly built home (which comes with a builder’s warranty), new homeowners need to consider purchasing home warranties. That’s why you should check out this link to help provide more information on home warranty plans and price ranges. This way, you can make an informed decision on whether or not a home warranty is right for you. Home warranties can be beneficial in several ways:
Provide Convenience
If the homeowner has moved into a new area, most likely they are unaware or haven’t established relationships with local mechanics or contractors to assist with repairs. Searching for mechanics in an unfamiliar place may prove to be an uphill task. This is where warranties for new homes come in. They find and hire a trusted professional. However, some companies require the homeowner to hire a contractor and reimburse or pay the contractor directly.
They Are Fairly Priced
Home warranties are pretty priced, considering the cost of repairing or replacing appliances from scratch. Many warranties range between $500 and $1000 yearly, depending on the company and appliances covered. After one year, the warranty expires and needs to be renewed.
Gives Peace of Mind If the House Has Older Systems and Used Appliances
Moving to a new house with older systems and used appliances may be challenging. The furnace may go out in winter, AC may not function in summers, or the boiler may break down. This can be financially devastating as it may mean putting aside cash for detaching/removing the old boiler and buying and installing a new one, which sometimes may involve a lot of money. But with a warranty, systems and appliances can be easily fixed at a small fee.
No Need for DIY Skills to Handle Repairs
When it comes to appliances and home systems, repair and maintenance are expected to wear and tear with time. A simple repair like fixing a leaky pipe or replacing the washing machine’s drain may be a small task for someone who has knowledge and experience about these projects. However, if the homeowner is gray on these matters, they may need to learn a few skills to get things done, which can be challenging and time-consuming. But with a home warranty, items can be pretty straightforward. The homeowner needs to call the company, which handles replacements or repairs at a small discounted fee.
New homeowners should consider getting home warranties. They can provide peace of mind and save time and money if a home appliance or system breaks down. However, homeowners should do their due diligence and learn the contract’s rules, limitations, and exclusions before making the big decision.