Home warranties are worth the investment for a variety of reasons. They provide reassurance to first-time home buyers who may not be familiar with the history of systems and appliances in their new homes, as well as those who lack extensive knowledge of reliable contractors.
However, it is important to carefully review a contract’s terms and conditions, exclusions and dollar limits per appliance/system and year before purchasing.
1. Peace of Mind
Home warranties provide peace of mind for homeowners, knowing that the systems and appliances in their house will be covered in case of an emergency. It is also a good idea for first-time home buyers who may not have an emergency fund saved, as it provides a safeguard against expensive repair bills.
Moreover, the process of filing claims and finding professional service providers is handled by the warranty company, which can save a lot of time and hassle. However, it is important for homeowners to note that the home warranty will not cover everything. Hence, it is crucial to weigh the benefits and drawbacks before purchasing a home warranty. It is best to choose a plan that is curated for the individual’s needs. Otherwise, it might end up being a waste of money.
2. Convenience
After spending earnest money on a home, paying closing costs and depositing your mortgage funds, the last thing a new homeowner wants is to pay for a repair bill that they didn’t expect. A home warranty is a great way to cover these expenses in the event of a breakdown, giving the homeowner peace of mind and saving them time and energy by having professionals take care of the repairs for them.
However, if you don’t like the selection of contractors your home warranty provider works with, it can be difficult to find a service professional that meets your needs. It’s also important to read the contract carefully as premiums, terms and conditions, clauses and exclusions can vary greatly from one plan to the next.
3. Reliability
Home warranties offer a level of reliability that can help homeowners feel more at ease. They can help prevent the frustration that often comes with trying to find a reliable service provider, as well as help avoid overpaying for repair services.
Additionally, a home warranty can provide added confidence to potential buyers of a house. However, it’s important to note that these policies typically don’t cover acts of nature or natural disasters.
Whether you’re hearing weird noises coming from your fridge or your heater is stalled in the middle of a heatwave, having a home warranty can be a lifesaver.
However, it’s also important to evaluate your risk tolerance and budget before purchasing one. And be sure to review the plan’s premium, deductible and coverage options.
4. Time Saving
Home warranties can save you money in the long run by avoiding costly repairs and replacing your appliances. They also reduce the time and hassle involved with locating service providers, scheduling appointments, and waiting around for a technician to arrive.
While you can certainly set aside funds for emergencies in a rainy day fund, many homeowners prefer the convenience of a home warranty and the peace of mind it brings. Having an active warranty can also make your house more appealing to potential buyers if you plan to sell it in the future.
It’s important to shop for a home warranty that provides curated coverage options for your specific appliances and systems. Premiums, deductibles and exclusions can vary greatly. Be sure to review the terms and conditions carefully before signing a contract.
5. Unlimited Service Calls
If a home warranty company’s service technicians are able to fix the problem, it may only cost a flat-rate service call fee, rather than thousands of dollars in repairs or replacement costs. This is a big benefit for older homeowners in particular who may struggle to find reliable and trustworthy repair technicians on their own. Appliances warranties are often used because the kitchen is the most used area in the home. Getting service done or under warranty is a lot less expensive and stressful with coverage.
While a home warranty may cost more upfront, millions of homeowners believe that it is worth the investment. However, be sure to review the contract carefully before buying a home warranty to ensure you understand the scope of coverage and what’s excluded (it’s also a good idea to keep an emergency fund set aside in case something goes wrong). Aside from the annual premium and day-of-service service fees, home warranties are generally inexpensive compared to repairing or replacing essential appliances and systems.
