There can be a lot of unknowns when it comes to the process of buying a home. By the time you get through the finding and closing processes, the last thing you want is unexpected issues with your new investment. Unfortunately, there are times when this can’t be avoided, and these are the times a home warranty can be indispensable.
Obtaining a home warranty can put a new homeowner’s mind at ease by financially protecting them from unforeseen repairs that may be needed after he or she purchases a home. A home warranty covers the cost of repairing or replacing broken mechanical systems and appliances within the first year of owning a home.
What You Should Know About Home Warranties
What it costs: The price of a home warranty depends on the level of coverage you select. Generally, home warranties begin at around $300, but they can go upwards of $800. This amount can be paid up front or broken into monthly payments.
There is also a deductible that must be paid any time the home warranty company sends out a person to inspect an item that needs to be repaired. This typically ranges from $50 to $100.
What it covers: Home warranties cover repairs to and replacements of systems and appliances that have suffered from the usual wear and tear. Home warranty plans can cover just appliances, just mechanical systems, or they can cover both.
A home warranty can include electrical, plumbing, heating and cooling systems, as well as kitchen and laundry room appliances. This will all depend on the level of coverage you select. Make sure to see a copy of the policy before you commit so you know what exactly is included.
Who pays: A buyer or a seller can pay for a home warranty. Oftentimes, home sellers will provide a home warranty to make their home more attractive to potential buyers.
What’s the benefit: For home buyers, a home warranty provides you with peace of mind that you’ll have financial support if something breaks after moving in. It can be a benefit for home sellers, too, as it’s seen as a bonus to home buyers.
How it differs from homeowner’s insurance: Mortgage lenders require a home buyer to purchase homeowner’s insurance, which provides coverage to help replace or repair a home if it is damaged. A home warranty, on the other hand, is optional, and it only provides coverage to appliances or mechanical systems that break because of normal wear and tear.
Buying a home is a big investment, and the last thing you need is to spend more money on repairing and replacing appliances. Home warranties provide the financial protection necessary to give you peace of mind in case these unexpected repairs are needed within your first year of owning a home. And as they say – it’s better to be safe than sorry!
With years of experience in the real estate business, Bittinger Team, REALTORS is equipped with the knowledge and expertise to help you through every step of buying or selling your home. Contact us today!