Home Warranties – Not Just a Buyer’s Peace of Mind
Home warranties have been growing in popularity in recent years – giving peace of mind to both sellers and buyers. Warranties, which are transferrable from seller to buyer, eliminate worries about unforeseeable problems for everyone involved. They also sweeten the deal on sales and may alleviate any trepidation on the buyer’s part.
What most people may not realize, however, is that home warranties aren’t just of value during transactions and the first year of home ownership. Warranties can be renewed year after year, for as long as you own the home.
The benefits of investing in a warranty usually outweigh those of not having one. They generally cover major appliances and systems, including heating and air, ductwork, plumbing and electrical. Warranties help curb the financial impact of any major, unexpected and ill-timed repairs. There’s also only one phone call to make, so if the kitchen’s flooding, you don’t have to work through a list of yellow page plumbers. The warranty company will send one of their contracted professionals. While there’s a small, flat service fee for each issue, it’s generally minimal compared to the potential cost of a whole repair.
Warranties start about at a few hundred dollars a year and cover most things homeowners’ insurance does not, (and vice versa). As with all contracts and policies, it’s important to read all the fine print about what’s covered and what’s not, as well as any maximum payouts or replacements. Ultimately, home warranties are an investment, or sort of a health insurance for your home. It may not ever need to be used, but most find that the peace of mind is worth it.