Home is, without a shadow of the doubt, single largest investment for almost every homeowner. It takes more than a suitcase full of cash to buy one of the basic necessities to protect your loved ones. But, it is a fact that, responsibilities of a homeowner is never limited to buying a home. Proper home maintenance, daily and monthly expenses and a lot more responsibilities are associated with a home. So, if you are one of those individuals who is looking forward to buying a home, then you must be aware of facilities of which you can reap benefits. One such helpful facility is a home warranty that can save a great deal of your hard earned money.
Let’s know more about home warranties
A legal agreement takes place between the homeowner and the company offering the warranty for a home in which company agrees to repair a certain type of systems or home appliances for the time mentioned in the agreement. When any of the agreed appliance or systems break down, the company is responsible for repairing/replacing the appliance. If any breakdown takes place, homeowners can put the claim online or through a call, the service provider then visits and does the needful repair. Depending on the policies or the agreement, homeowners can pay the cost up front and get reimbursed by the company later. Remember, the company pays only for the stuff covered by the policy.
Should you buy a home warranty?
For homeowners with a newly constructed home or those having their own home for long, the home warranty is beneficial in many ways. Depending on some circumstances, you need to analyze whether a home warranty is beneficial for you or not. People with a newly constructed home and newly equipped appliances and systems can consider buying home warranty later as most of the appliances come with a warranty of a year or two. So, better opt for new warranty after existing one expires.
But, if your home is old and equipment in your home being used for more than a year, buying a home warranty is something that makes absolute sense. Of course, you may have to bear plenty of expenses on maintenance of different kinds of appliances, and hence, a home warranty can prevent your bank balance from getting reduced.
What is covered and what isn’t:
A typical home warranty company offers more than one tier of coverage, depending upon price. A basic home warranty will cover a very specific list of appliances and systems such as the plumbing and electrical systems, heating and duct work, water heater, refrigerator, dishwasher, range or oven, built-in microwave, trash compactor and garbage disposal.
Some policies also cover the doorbell, burglar or fire alarm, ceiling fans, exhaust fans, central vacuum, washer, dryer and garage door openers. An upgrade on your coverage, costing an additional $100 to $300, might include exterior pools and spas, septic tank pumps, sprinkler systems and well pumps.
Conditions apply, and you must be aware of these conditions. You need to read the fine print when considering a home warranty – the devil is in the details and those small fonts may have something big. A home warranty probably won’t cover anything that isn’t specified in your contract. And it may not pay for some of the covered items if certain conditions are not met. For instance, most of the home warranties will never cover repairs for appliances that exist before the policy; most of them have a 30-day waiting period. If you buy a house and something goes wrong with an appliance in the first 30 days, the warranty probably won’t cover it. Also, a company offering home warranty may not provide coverage for appliances that are not installed properly or any appliance on which repair work has already been done. Consult the facility provider about the appliances covered in the policy before making any final decision.
Is home warranty worth buying?
Homeowners may find home warranty companies varying in quality, but many are notorious for balking at service. If you work with any wrong company, it may drag its feet when you need a repair. If your home is without hot water, air conditioning, heat or electrical power, delaying repairs may force you to handle the problem on your own which may be exactly what the warranty company is hoping for. Homeowners need to ensure that the home warranty company they choose is actually a company, not a local affiliate or lead-generation site. Search the company name online and make sure it has a real address, and note the contact information you’ll need if you have a problem.
Home warranty makes the most sense when you have moved into a new home and the systems and appliances have been used previously. Or when you’ve had your own items for two or more years, home warranty makes absolute sense.
Summing it up, there are more than just a few things that you need to take into account before buying a home warranty. Moreover, you need to understand things on your own whether the home warranty will prove to be beneficial for you or not. To do so, you can check the number of appliances equipped in your home so as the time you have been using them. Home warranty, in general, is a real estate transaction and mostly takes place while buying a home, but homeowners just like you have got the freedom to opt for home warranty at any stage.
So, if you are one of those homeowners who never want to compromise with the functionality and comfort of home, then nothing can be better than buying a home warranty from one of the reputable companies. To make things easy, you can take a look at the reviews about the companies to ensure whether you are choosing the right company or not. Instead of waiting and wasting more of your precious time, Google up for one of the best companies and secure your home appliances and systems for long period.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.