These days you can get warranties on just about anything you buy, so why not a house? When people purchase a house, they expect everything to work as planned but this not always the case. Buying a house is a huge financial investment and it is always better to be safe than to be sorry later.
Whether you are a buyer or a seller, there are several benefits in investing in a special home warranty plan for your home. In this article, we will cover what home warranty is all about and the benefits of purchasing a home warranty even as a home buyer.
What is a Home Warranty?
Also known as Home Service Contract, a home warranty provides guarantees to protect home owners from unexpected repair or replacement costs for the major appliances or systems in a home. While the level of coverage varies across plans, home warranty plans typically cover major home appliances like refrigerators, washing machines, HVAC equipment, electrical systems, and home security systems.
While both home warranty and home insurance offers homeowners a level of protection, they are entirely two different entities. Home insurance is designed to offer homeowners financial protection in the event of an unforeseen massive damage or liability not caused by wear or tear. Home warranty on the other hand, is a protection policy that covers your home’s major appliances or systems as a result of wear and tear.
More importantly, the average cost of purchasing a home warranty plan for your home can start from $300 to $700 per year depending on the type of coverage and location. While most home warranty plans are purchased by sellers as an add-on during a home sale, it is also common for home buyers to purchase their own warranty plan.
Benefits of Purchasing a Home Warranty as a Home Buyer
Below are some benefits that comes with purchasing a home warranty for your home even as a home buyer.
- Peace of Mind
This is one of the major benefits of purchasing a home warranty as a buyer. Home warranty offers you the peace of mind knowing that your home is protected against expensive appliance repair issue. If one or more of your home appliances breaks down, you are rest assured that the cost of repair or replacement is covered by the home warranty provider.
- Saves You Money
Regardless of how well you maintain your home appliances, you are bound to run into one repair issue or the other. As a result, you may have to spend thousands of dollars to have these issues fixed. Unless you have an emergency savings for such issues, this is likely going to affect your finances. Having a home warranty plan will definitely save you from such unplanned expenses. This is because repair issues relating to your home appliances are largely covered by the home warranty provider.
- Provides an Easy, Time-Saving Way to Find Service Providers
Having to search online and run through multiple phone calls to find the right handyman for your broken refrigeration can be a nightmare. Sometimes, before you find the right service provider, the problem may have escalated beyond a simple repair issue. With a home warranty, you don’t have to go out of your way to fix the problem. You simply reach out to the provider and hand them the necessary details. They will take over and make it a point to fix the problem immediately.
- Long-Term Protection
It is common for home warranty providers to offer annual-based home warranty plans. Knowing that your home appliances and systems are covered for a year and more after closing is sure to give you peace of mind. Having home warranty as a buyer protects your home appliances for a longer term and help you save money that should have been spent unplanned expenses.
Getting a home warranty as a buyer comes with a lot of benefits. Typically, home warranties are often negotiated as part of an offer and paid for by the seller out of closing. It’s a good idea to let your real estate agent know that you’d like to include this as part of the terms of an offer upfront.
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