Let me tell you about a trade secret known as a home warranty. Purchasing a home warranty can help reduce the financial burden when something goes wrong in the house. And yes, you have to pay for a warranty upfront but the benefits are worth every cent.
As a homeowner, costly repairs are one probably of your greatest worries when you move into a home. But what if I told you that there is a way you could avoid those fears? If something breaks or needs replacing, it can be done with a simple service fee.
Let me tell you about a trade secret known as a home warranty. Purchasing a home warranty can help reduce the financial burden when something goes wrong in the house. And yes, you have to pay for a warranty upfront but the benefits are worth every cent. Here’s a link to my personal experience with home warranties.
With that said, here is an overview of what a home warranty is, how it works, and if it’s worth your time.
What is a Home Warranty?
A home warranty is a contract made between a homeowner and a home warranty company, where the company agrees to provide repairs and replacement services at a discounted rate. Unlike home insurance, this home warranty covers a home’s major components like HVAC units, electrical systems and plumbing.
In some cases, the home warranty can stretch to home appliances like refrigerators, swimming pools, washers and even dryers.
The best part of buying a home warranty is that you can customize your plan to cover additional basic items in your home. Ultimately, your home warranty will only cover what is listed.
How do Home Warranties Work?
When something covered by the home warranty breaks, a homeowner is required to call the home warranty company right away. After the initial contact, the home warranty company sends one of their service providers to do a thorough check of the problem.
If the provider deducts that the needed replacements or repairs are covered by the warranty, they finish the work. As a homeowner, you are only required to pay a small service fee which is very little compared to the overall repair or replacement cost.
What Does a Home Warranty Cost?
According to the NHSCA, the average cost of a home warranty is $ 550. However, as with many products and services, the price may vary depending on you. For example, listing fewer items on your home warranty might reduce the price, while more items might mean more cash.
In addition to the annual premiums, home warranty companies also charge a service fee which can vary between $ 75 to $ 125 depending on the company. Some companies might charge even more.
Who Should Buy a Home Warranty?
Ideally, most homes come with home warranties already purchased by the seller. The seller might be kind enough to buy you one before closing the deal for your new home. However, if your home does not have a plan, expect to receive numerous solicitation calls and emails urging you to buy a home warranty.
But here’s the good news. You don’t have to buy it immediately. A home warranty can be purchased at any time within your stay in your new home.
However, if you are moving into a previously owned home, you should consider purchasing a home warranty especially if a home inspection shows that most of the home appliances are over five years old.
Is a Home Warranty Worth it?
As discussed above, home warranties provide homeowners peace of mind at very affordable prices. Home warranties save many homeowners money on costly repairs, specifically on old appliances.
If extra assurance and peace of mind are valuable to you, then a home warranty is the best option for you.
Not only will the home warranty protect your biggest investment, but it will help you to manage the expected.
If you are looking to move into a home in Idaho, there is no reason why you should move into a sub-standard house without a reliable home warranty. As a veteran in the real estate industry, George Tallabas is here to ensure that you get the most out of any real estate deal.
Contact us today to find your dream home in Idaho.