Home warranties from reputable companies provide peace of mind and save homeowners time and money. They cover repairs to major appliances and systems when they break down.
They also offer a curated selection of coverage options to fit every home. Homeowners can even negotiate with the seller to include a year-long plan in the sale price of their new home.
- Peace of Mind
The home warranty industry’s marketing is based on the idea that it gives homeowners peace of mind. While there’s nothing wrong with that, buyers should assess their own ability to handle potential repair costs before they decide on a home warranty.
In Western thought, the concept of peace of mind relates to feelings of tranquility and contentment. It’s also a common term used in meditation practices and in discussions of psychological well-being.
For new homeowners, the home warranty offers the reassurance that most appliances and systems will be covered for at least a year. The home warranty company also typically handles the process of finding qualified service providers for repair or replacements. “Does the home warranty cover the roof?” The reassurance is one reason why many people find it worth the investment.
- Convenience
Home warranties offer homeowners peace of mind when appliances and systems break down. They also save them the hassle of collecting contractor quotes or tinkering with repairs themselves.
Generally, for a flat rate decided in the contract, the warranty company will handle all of the work. This means that a repair that could cost hundreds or thousands will only cost you the amount set in your plan.
Additionally, some home warranty providers offer extra savings opportunities for their clients like appliance discounts or air filters. This can help to keep the annual cost of the plan down, which makes it even more affordable for many. However, make sure to choose a provider that offers transparent contracts with clearly defined terms and conditions, clauses, and exclusions.
- Financial Stability
For new homeowners, or for those that have recently purchased an older home with out-of-date appliances and systems, home warranties can help soften the blow of unforeseen costly repair bills. However, a consumer should perform their research and read through the contract thoroughly before choosing a plan to ensure that it is
right for them.
Purchasing a home warranty can also act as a financial buffer for those that don’t have an emergency fund or prefer to reserve it for other uses. It can also provide peace of mind for those who aren’t handy and don’t want to be on the hook for expensive DIY repair or replacement costs. Home warranties may not make sense for those that are diligent with their appliance and system maintenance, however.
- Flexibility
Home warranties can be a smart option for homeowners who don’t have a large emergency fund or want to reserve those funds for other uses. However, it’s important that consumers perform thorough research into the companies they are working with and that the terms of their plan are clearly understood. It’s also helpful for people to look into extra benefits that might be offered by their chosen home warranty provider, such as discounted air filters or upgrades to name-brand appliances.
Home warranty offers a financial safety net to buyers, sellers and real estate agents. But it’s important to read your contract carefully and ask questions about the yearly premium, service call fee and deductibles.
A home warranty might make sense for homeowners who aren’t handy or who want to avoid draining their emergency fund on repair costs. It might also help new homeowners avoid unexpected expenses right after moving in.
It is important to note that homeowners need to look into every warranty company and understand that coverages are different across the board. Buying a home comes with a lot of responsibilities so understanding the difference between home insurance vs home warranty is very beneficial.
Home warranties are a great buy for new homeowners, as they can help soften the blow of unexpected repair or replacement costs. They are also worth it for existing owners whose appliances and systems may be nearing the end of their lifespans. And, for sellers, having an active warranty during the listing period can make a property more attractive to potential buyers.
