Whether you’re buying a new or an old real estate property, its care and maintenance should become your priority. That’s why it’s vital that you get a home warranty to ensure that all appliances and security systems are properly taken care of.
A home warranty ensures the new home-buyer’s safety of their finances. In the same way, it gives the seller protection from complaints once they close the deal.
Though warranties are a great way to ensure financial protection, are they really the insurance all homeowners need?
Here’s everything you need to know about a home warranty to help you make an informed decision.
What Is a Home Warranty?
Before we delve into the benefits and disadvantages of home warranties, we need to unpack what home warranties are.
If you think home warranties are like homeowners insurance, think again! In fact, these two are completely separate terms with different meanings to them.
That’s because home warranties are a policy that provides discounted repair and replacement for systems and appliances. These include but aren’t always limited to the HVAC systems, plumbing, electrical systems, furnace, etc.
It means that home warranties don’t cover fires, crimes on the property, and extreme weather conditions like hail, and water damage that can damage your possessions.
So, what are the pros and cons of getting a home warranty?
Pros: Peace of Mind
Peace of mind is definitely the biggest advantage of getting a home warranty. You can rest easy knowing that you won’t have to drain your savings to make repairs. Instead, a professional will show up and fix things at a discounted rate when something breaks. That way, home warranties are perfect for people who aren’t exactly handy or don’t want to fork up money for repairs.
Cons: Not Everything Is Covered
The biggest obvious disadvantage of getting a home warranty is that it won’t cover everything. For example, some warranties will only cover some part of a system or an appliance’s components. Moreover, these policies don’t cover any damages from a natural disaster and only natural wear and tear.
It’s important that you read through the specific terms and conditions of your warranty. That’s because they’ll help you understand what the individual exclusions are.
However, if you get homeowners’ insurance with your home warranty, you’ll have complete coverage for a majority of possible damages.
Pros: Budgeting Becomes Easy
Home warranties are a clever way to save money if you need to budget carefully or have to stay ahead of financial planning.
Think about it, your home is full of expensive systems and appliances that you don’t know when they’ll break down. Unless you get a home warranty, you’ll have to fork up a large amount of money to pay for the repairs or replacements. Sometimes, you’d even have to waste hundreds and thousands of dollars on a single problem. Unfortunately, not everyone can spend all that money.
Getting a home warranty can help make budgeting a problem of the past with fewer surprise costs. That’s because you’ll know your premium costs from the start and what is covered in the warranty. Moreover, you’ll also know what your deductible is for any repairs or replacements.
Cons: You Might Not Get to Choose the Repair Technician
Though there are many warranty companies that enable you to select your repair technician, it’s not always the case. The company might instead choose from the list of its providers.
However, this isn’t something to worry about as warranty companies tend to rely on licensed and industry expert contractors with years of experience. That way, you can expect top-quality contractors to help with repairs.
Pros: Getting Services Is Swift and Easy
Even if you can’t select your technician, you’ll easily schedule the repairs. All you have to do is contact the company, and they’ll send a technician to repair your home systems and appliances.
So, you can say goodbye to spending your afternoon tracking down a repair technician with experience in your specific system!
If you’re looking to invest in a new or old home, hire a professional real estate agent to ensure your rights are protected.
When it comes to leading real estate agencies in North Carolina, Phillip Fehler Realtor Northgroup has helped numerous home-buyers buy the home of their dreams.
Take a look at their website today if you want to make a safe investment in the residential real estate market.
About the Author
The author is an expert real estate agent with more than two decades of experience in providing excellent real estate services. They perfectly understand the different types of insurances and warranties and are always ready to guide home-buyers with related issues and guidance.
