When you buy a home, regardless of whether it’s old or new, you’ll probably be offered a home warranty. In some cases, the seller may offer you one as an an extra level of protection, just in case something in the home breaks down and can’t be repaired inexpensively. If this isn’t the case, you’ll most likely start receiving direct mail solicitations offering you a home warranty.
While a home warranty sounds like a great way to protect your investment, some homeowners may be skeptical about its value.
Read on the learn what a home warranty is and five reasons why you should have one:
What is Home Warranty?
It’s easy to see why some homeowners get home warranties and homeowner’s insurance confused. However, they are quite different. Homeowners insurance protects you against natural disasters like fire and hail as well as theft and structural damage.
A home warranty is a contract between a homeowner and the home warranty company, which provides a discounted rate for repair or replacement of the home’s major systems like the plumbing, electricity and heating and air conditioning. A home warranty can also cover repair or replacement of major appliances.
Just like the rest of your home, your appliances are a major investment. When they malfunction or stop working completely, repairs or replacement can be costly. Having a home warranty can cover the repairs and in the worst case scenario, even cover replacement of appliances and major systems within the home. In addition, when you have a home warranty program, you have comprehensive coverage with little to no out-of-pocket expense.
Increase Resale Value
Whether you’re looking to sell your home or you’re in the market to buy, having a home warranty in place adds value to your home and gives homebuyers an extra level of protection. Buyers are protected from malfunctioning systems and faulty appliances. As a seller, you’re able to leverage your home warranty to prospects worried about unexpected repairs.
As a responsible homeowner, you need to budget for just about everything. From paying the utilities to saving for unexpected repairs, home warranties can actually help you budget your finances. When you know what’s covered under your home warranty, you no longer have to worry about having enough money to cover unexpected repairs or replacement of your home’s appliances or systems.
Home warranties also help you save time. When home systems break down or appliances stop working, homeowners are often left scrambling to find a reputable contractor. When you have a home warranty in place, you already have a reliable serviceman at your
Peace of Mind
As a homeowner, you never know when something is going to stop working or completely break down. With the right home warranty in effect, you have the peace of mind that regardless of what goes awry, it can be repaired without making a dent in your savings.