Friday, 29 May 2020

Everything You Need to Know About Home Warranties

Written by Posted On Monday, 24 June 2019 06:43

Buying a home is not a choice to make lightly. It is an expensive investment that you of course want to protect. Beyond just being a huge investment, it is also the place where you and your family will be living. Of course, it is even more than that it is the place you and your family will call home.

Protecting your new purchase is a no brainer. But what is the best way to do that? Buy a home warranty? What about homeowner’s insurance? Doesn't that cover enough?

Keep reading to learn everything you need to know about home warranties, their benefits, what they cover, and who they really help out in the end. 

What Is a Home Warranty?

Obviously, a home buyers warranty is different than homeowner’s insurance but how much? Well for starters insurance will cover most major catastrophic events like fires, floods, property crimes, and water damage. However, when it comes to fixing your dishwasher because it stopped working, that's where you'll need a warranty. 

Coverage

A home buyers warranty will cover most major appliances as well as the home's air conditioning, plumbing, and electrical systems. When one of these items is damaged, the homeowner calls the warranty company and the warranty company provides discount repair, or low-cost or free replacements.

Plans will differ from provider to provider, so it is important to look at what each has to offer to choose the best coverage for your needs.

Benefits of a Home Warranty

There are many benefits to purchasing a home buyers’ warranty beyond simply replacing or repairing your damaged items at a discount though this is usually benefited.

One of the worst fears of moving into a new home is finding surprise repairs that were overlooked (or maybe created after) during the previous showings. After having spent all that money on closing costs no one really wants to spend more on repairs. 

Especially when those extra costs come as a surprise after you've already moved in or while moving in, in some cases. Home warranties can even benefit sellers in this respect. 

It is possible for a seller to obtain a warranty during the sale of the home to ensure that any surprises that come up can be handled. This will also help to increase the chances of selling your home as most warranties are transferable to the new owner. 

Who Really Benefits from a Home Warranty?

Home warranties can come in handy when surprises come up for both the buyer and the seller during the buying process. But who really benefits from home warranties, the buyer, seller, Warranty Company or banks? 

The truth is everyone benefits in some way really. Banks are happy knowing that should something happen after the sale you are protected beyond the insurance and will be more inclined to approve your home loan. And even the seller's and buyer's agents can benefit.

Having a home with a warranty makes listing the house easier and makes the agents’ jobs easier in both selling the home and helping potential buyers make the decision. 

Filing a Claim

The exact process for filing a claim will vary depending on the provider you choose. So be sure to look into exactly what that process entails.

But generally, the process for most companies is similar. If you discover one of the covered items in your home is damaged the first step is to take pictures. The next step is to contact the warranty company.

Inform them of the problem and they will provide you with directions from there. Some companies will require a fee for each claim regardless of the damage before a contractor comes out while others will require payment afterwards. In some cases, no deductible is necessary. 

The Bottom Line

When it comes to protecting your investment and the home of your family and lived ones it is always a good idea to get a home warranty. They can ease the pain of any surprises that come up after moving in and spending all that money on closing costs. 

Choosing a home warranty will come down to the type of coverage you want and the premiums and deductibles you are willing to pay. If you're selling your home, a warranty could make your house more appealing to potential buyers.

Whatever your choice, you can't go wrong with ensuring your family will always be safe and comfortable in your new home. 

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tracy handy

Tracy is a full-time real estate advisor and blogger. she specializing in real estate technology .and she would like to write real estate,  home improvement topics.

https://myrealestate.com/
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