Do new home buyers need a home warranty tips, Property buying advice, Real estate guide
Do New Home Buyers Need A Home Warranty?
12 March 2022
What does a home warranty mean? It is a type of policy that a house owner purchases. This policy covers the expenditure incurred to fix any home appliances if they don’t work anymore. The word warranty should not be new to you. Many things such as cars, smartphones, fridges come with warranties.
Home warranties are a messiah for new homeowners who wish to protect themselves against any financial loss due to unforeseen issues with their appliances. Most people purchase a home warranty with a one-year duration after buying a new house. They feel more comfortable knowing the fact that they won’t have to spend money in unexpected situations, which makes them feel more secure.
Cost of a home warranty
The cost of a home warranty runs in hundred of dollars. You can either pay the entire amount in one go or opt for installments if the home warranty company allows it. There are different plans with different costs, which depend on the kind of property. There are various categories of properties such as duplex, condo, or townhouse. The house owner might choose any two plans: basic or extended.
The cost does not depend on the house’s age, but if the house was built in the last two months or so, the charge is more. If the square footage of the house is not more than 5,000 square feet, the price won’t depend on the square foot area.
Basic policies don’t cover structures that are an extension of the main property, like guest houses. However, you can get them covered by paying an extra fee. But parking is covered in the basic policy, and there is no need to pay extra for it.
Why do you need a home warranty?
Like other warranties, a home warranty should guard you against costly and unexpected repair bills and guard you against home-related stress. If you are a new home buyer who does not want to keep a separate emergency fund and intends to utilize it elsewhere, you should go for a home warranty.
A home warranty is also a good option for those who don’t have the time and energy to deal with minor repairs and don’t like the idea of talking to the contractor every time something breaks down. Someone who only uses expensive appliances would also find home warranties handy. You can begin the process of purchasing a home warranty here.
Home warranties are a proven method to provide reassurances to new home buyers that don’t know much about the maintenance procedures of the different appliances present in the house. They don’t know if the home has been built well enough. A warranty is a good option for all those who have finished their savings to purchase a home and can’t spend more on various repairs.
A home warranty is a good deal for home sellers, too, since it hedges them against any buyer complaints about issues that come up after the agreement has been made.
When do you not need a home warranty?
Several reasons might compel you not to buy a home warranty. If you have not maintained a particular item properly, a home warranty will not be liable to cover it. The catch is that what you might consider good maintenance might not be good enough for your warranty provider. Hence, this is a grey area and a cause of many conflicts.
Shady warranty companies also use this reason to deny warranty claims for genuine reasons to home buyers. Another issue pops up when the previous owner of the house did not take good care of the appliance leading to their breakdown. Even if you maintain it properly, you cannot undo the previous damage. The warranty company can then hold you liable for the damage and not cover it by saying it was not appropriately maintained.
No one agrees entirely with a particular fact. And the usefulness of a home warranty is no exception to this norm. A home warranty is a boon for those who believe in the principle of “better safe than sorry.” Analyze the different appliances in your house and gauge their reliability. You can also consult your real estate agent for expert advice and take the final call.
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