Purchase a home warranty cost and coverage
Do you know how to purchase a home warranty? Do you know the cost and coverage of a home warranty? Let's begin with what it is. In a nutshell, it's a policy you pay for that covers the cost of repairing many home appliances if they break down. After all, lots of things you buy come with a warranty in case they break down, from cars to smartphones. But what about homes? It turns out you can get a home warranty, too.
How much does a home warranty cost?
While home buyers are often required to get homeowners insurance along with their mortgage, home warranties are a fully optional purchase. Basic coverage starts at about $300 and goes up to $600 for more comprehensive plans, says Bell. A homeowner can add extras if needed, such as coverage for a swimming pool or an external well.
Although many companies offer home warranties to homeowners at any point, the best deals can often be snagged if purchased at the same time you buy the home.
“The warranty plans offered at the time of the real estate transaction typically offer the most comprehensive coverage and price points, so that’s why it’s the ideal time to lock it in,” Bell says. At the end of the first year, you usually have the option to renew your plan or bail.
What does a home warranty cover?
Don't mistake a home warranty for homeowners insurance, which covers your home's structure and belongings in the event of a fire, storm, flood, or other accident. A home warranty, in comparison, will cover repairs and replacements on systems and appliances due to normal wear and tear—no calamities required.
A home warranty generally covers these items:
- Electrical systems
- Plumbing systems
- Heating and cooling systems
- Washer and dryer
- Kitchen appliances such as the oven, range, and garbage disposal
Benefits of home warranties for home buyers and sellers
A home warranty benefits home buyers by providing reassurance that they can move in without worrying about shelling out even more for surprise repairs.
A home warranty can also benefit home sellers (if they don't have it already), since it can cover these elements during the listing period; some companies even offer free seller’s coverage during this time with the hopes that the buyer will decide to continue the coverage. Oftentimes, home sellers will offer to pay for the first year of a buyer's home warranty to entice buyers to bite.
But not everyone thinks home warranties are worth the cost. Typically they aren't necessary with new homes, since most of the appliances are already covered under manufacturers' warranties. But in general, the older your home, the greater the odds are that something's bound to break, and the wiser it is to get a home warranty. Best of all? Many companies don't differentiate between newer and older homes in terms of cost, making a warranty an especially cost-effective option if you are purchasing an older home.
What to do if something breaks
If something covered under your home warranty breaks, you just call your provider and it will connect you with a qualified contractor in your area. One thing to remember is that a home warranty does not mean you're off scot-free; typically you'll have to pay for a service call or a certain amount of the bill up to your deductible first.
While not everyone will think a home warranty is worth it, it is a good idea for people who lean toward the "better safe than sorry" approach when buying a home.
Category: Real Estate General Information
- how to balance your mind and achieve greater happiness
- Cultivating Resilience and Mental Toughness - Keys to Thriving Amidst Lifes Challenges
- 50 positive affirmations to be read every day
- Why Mind Balance is so important for everyone
- Teenagers are rushing to MindBalance rather than wasting time on TikTok
- Take the Wheel-Navigating Life Beyond the Screen
- Mind Balance - A Comprehensive Solution for Navigating Modern Mental Health Challenges
- Unlocking Potential - The Power of Personality Assessment in Overcoming Obstacles
- Embracing Faith and Self - A Christian Guide to Personal Strengths and Weaknesses
- Uniting in Universal Love - Embracing Commonalities Across Faiths
- Bridging Divides - Understanding Barriers to Unity and Happiness in World Religions
- Overcoming Ego and Self-Centeredness - Lessons from World Religions
- Overcoming Prejudice and Intolerance - Guidance from Global Faiths
- Cultivation and Improvement of Personality Traits to Deepen Ones Relationship with God
- A Tapestry of Faiths - Exploring the Common Threads in World Religions
- Fostering Harmony Among Christianity Islam Buddhism Hinduism and Judaism
- Preparing Kids for Adulthood - 15 Vital Skills They Wont Learn in School
- Cultivating Key Skills to Overcome Anti-Semitism and Hate
- Navigating Diversity - Jerusalem's Tactical Approach to Interfaith Harmony
- Living the Teachings of Jesus - 100 Lessons for a Compassionate and Faithful Life