Home warranties are often discussed when buying or selling a home, but for those who haven’t owned a home before, it may not be obvious why having a home warranty is a good idea.
Home warranties cover the fixtures inside the home, such as the plumbing and electrical components, as well as the appliances. If anything breaks down or stops working, it can be repaired or replaced without a huge cost to the homeowner.
Some of the reasons why having a home warranty is important will include the following.
Save on Replacing Appliances
When a refrigerator stops working, repairing or replacing it can get expensive. Yet, the appliance is vital in homes today, so it needs to be repaired or replaced fast. With a home warranty, the homeowner doesn’t have to worry about paying the full cost of the repair or replacement on their own. This helps them save money and make sure the refrigerator is working again as soon as possible.
Save on Home Repairs
A plumbing leak can be disastrous and lead to water damage that can be costly to fix. An electrical emergency can be risky as well, as there is the potential for a fire. With a home warranty, these issues can be repaired fast, so the homeowner doesn’t have as much to worry about. This means the home warranty cost is well worth it, as the cost is much lower than handling major plumbing or electrical issues in the home.
Covers What Insurance Doesn’t
Homeowner’s insurance is important to have, but it only covers certain things in specific situations. If something breaks due to wear and tear, it’s not going to be covered by the homeowner’s insurance policy. It will, however, be covered under the home warranty. Both the insurance and warranty can work together to help homeowners deal with disasters, as well. If there is a plumbing leak, insurance will cover the water damage, and the warranty will cover the pipe repairs.
No Surprises for Buyer After Closing
When it comes to buying a home, getting a home warranty is a good deal. Often, the seller will offer to pay for a year of the home warranty. For buyers, this gives them peace of mind that they won’t have to spend a ton of cash on repairs or replacements if something goes wrong within the first year after they purchase the property. They can always renew the home warranty, as well, to continue using it.
Help When Selling the Home
For sellers, offering a home warranty can help to sell the home. Since it’s worthwhile for buyers, this is something they may look for when they’re deciding which home to purchase. Some studies have also suggested that adding in a home warranty for the first year can help raise the value of the home, so the seller gets more money.
Home warranties, whether they’re purchased by the homeowner or during the sale of a property, are a great way to make sure everything in the home continues to work as expected. By purchasing one, it’s possible to save money in the long run, and there’s no need to worry about any major appliances or fixtures breaking down.
