Home Warranties: Is It Worth It?
Acquisitions of homes are highly significant milestones. With the purchase, you might be given a home warranty that secures you against unexpected repair costs. But is a home warranty beneficial? Let us give you an insight.
What Is a Home Warranty?
A home warranty or a Home Protection Plan is an annual service contract. It pays for major appliances and systems in your house that break down from normal wear and tear. This will save you from costly repairs.
Imagine moving into your new home only to find out the air conditioning doesn’t work or the dishwasher has broken down. A home warranty from Falaya can help reduce the financial burden of these problems.
How Does It Work?
It’s wise to check out your house before buying a home warranty. This ensures that systems are installed and maintained correctly. An inspection report can indicate which items may need fixing soon.
Coverage usually starts 30 days after signing the agreement. If any covered goods break down, claim them with the warranting company. Within 48 hours, they will schedule one of their provider talents to fix it for you if it’s fixable as required by their protection cover; otherwise, they will arrange a replacement.
Home Warranty vs. Home Insurance
Home warranties cover appliance system breakdowns, while homeowners insurance policies cover damage caused by unforeseen events such as fire or floods. This must be clear.
What Does It Cover?
A home warranty covers repairs or replacements for these kinds of appliances both inside and outside your household, as specified in the written agreement. Structures such as windows and doors are some common exclusions.
Typical coverage includes:
Systems: Electrical, ductwork, heating, interior plumbing, water heater.
Appliances: Air conditioner, dishwasher machine, garage door opener device, garbage disposer unit, oven/range/cooktop equipment, refrigerator (sometimes optional), and pool/spa equipment (optional).
Pros:
Financial Protection: Covers sudden high costs of repairs when a defect is unexpected.
Convenience: Saves your time by doing the work for you.
Cons:
Maintenance Issues: Claims can only be accepted if items are adequately maintained.
Repair Preference: Companies may elect to repair instead of replace even though the item breaks frequently.
Coverage Limits: Certain older objects might not be insured, and contractor choice in this regard rests largely with the company, saving you free agency.
Cost of Home Warranties
Home warranties cost hundreds of dollars annually, paid in whole or installments. The price depends on the type of property and the selected coverage plan. More significant properties or those needing widespread coverage will cost more.
Besides annual fees, service calls incur a service fee each time a provider comes to your house, usually between $60 and $100. Sometimes, several contractors will have to go to your home for one problem; therefore, there could be multiple service call fees.
Is It Worth It?
A home warranty is worth it for peace of mind. It avoids unexpected repair bills and the difficulty of finding reliable contractors.
However, if you are purchasing a newly built house, you may not need a home warranty immediately. New houses typically come with warranties from the manufacturer that last for one or two years and cover faults only. Since these don’t account for depreciation, it would be wise to obtain homeowner’s insurance right after that period’s lapse on such installation goods’ useful lives.
You might want to consider getting a home warranty if:
- You want minimal out-of-pocket repair expenses.
- You own an old home.
- You’re buying your first home.
- You want to sell your house and need buyers.
- You are a stranger in this area and need to learn about local repair services.