5 Benefits of Opting For Home Warranties
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Home warranties can be a great investment for new homeowners who don't want to set aside money for appliances and systems that could break down. But before you sign up, take a close look at the contracts to understand exclusions, coverage limits and premiums.
Also, keep in mind that many credit cards offer extended manufacturer warranties. This may make a warranty less necessary for new homeowners.
- No Waiting Period
A home warranty plan provides a strong layer of financial protection for homeowners or new home buyers. These plans cover repair or replacement costs for appliances and systems that break down due to normal wear and tear. They also provide a network of in-network contractors who can make repairs quickly and efficiently.
The yearly or monthly premium homeowners pay essentially serves as an emergency savings account, helping them save up for costly repairs and replacements. However, if a homeowner never has to use their home warranty, they may feel like their money was wasted.
Many home warranty companies have waiting periods to help prevent abuse of their policies. Typically, the waiting period lasts 1 to 30 days. This helps to protect the home warranty company from bogus claims that can cause them to lose revenue.
- Comprehensive Coverage
Home warranties, also known as home protection plans, cover the costs of repairing and replacing major appliances and crucial systems in the house. They are designed to protect homeowners from paying out-of-pocket expenses for repairs and replacements that occur due to normal wear and tear, or due to unforeseen events like severe weather or a burglary.
However, the decision to purchase a home warranty is ultimately dependent on your financial situation and risk tolerance. If you already have new appliances with manufacturer warranties in place and a robust emergency savings account, a home warranty may not be worth it for you.
Additionally, the cost of home warranty plans is typically based on the deductibles you choose and your service provider’s network. This could make it difficult for you to work with your preferred repairman.
- Convenience
Home warranties give homeowners and new buyers a financial buffer against expensive repairs or replacements of major appliances and systems. They also make it easier to find trusted service technicians.
It’s worth noting that, much like some health care policies, home warranties don’t
cover pre-existing conditions. The warranty company determines which local repair companies are in its network, so if you have a favorite repairman, you may not be able to use him.
Some people wonder whether a home warranty is worth the upfront premium and service fees, especially if they already have other insurance or warranty options. For example, most new homes come with manufacturer warranties on appliances and some credit cards offer additional coverage for systems like plumbing or HVAC. However, for many people, the peace of mind a home warranty provides is worth the upfront costs.
- Flexibility
A home warranty provides a financial buffer in case a big-ticket appliance or system breaks down. It can also extend manufacturers' warranties that might otherwise expire. Additionally, a reputable home warranty company connects homeowners with affiliated contractors so they don't have to find their own.
For new homeowners who might not have a robust emergency savings fund, home warranties can provide peace of mind. They can also add value to a property and make it more appealing to potential buyers. A reputable home warranty provider will offer a flexible plan with no waiting periods, giving homeowners the best options for their homes and wallets. They will also have a curated selection of coverage options for every home. This flexibility will benefit everyone involved in the process, including real estate agents.
- Peace of Mind
Home warranties are a great investment for new homeowners. They protect against the financially devastating costs of appliance and system repair and replacement. They also offer access to reputable service technicians.
If you’re a landlord, a home warranty may be a good investment to help you keep your tenants happy. Tenants are more likely to renew their lease if they know their appliances and systems will be covered by the home warranty. For more information, read more on Cinch Home Services`s official blog which can answer many of your questions regarding home warranty.
