Is paying for a homeowners warranty worth the cost?
So, let’s imagine that you recently bought a new home and you can’t wait to move in with your loved ones. In an ideal world, a new home should have minimal defects, and if any, they should be easily fixable. Unfortunately, that is not always the case. Many individuals have invested their hard-earned money into buying a home only to move in and find serious problems such as structural issues or even missing insulation.
Ensure that you do a home inspection, especially if you are buying a previously owned home. If the home inspection reveals that some of the appliances and systems are defective or almost at the end of their lifespan, it is highly advisable that you get a homeowner’s warranty.
Is paying a homeowner’s warranty worth the cost? Is paying hundreds of dollars every year for appliance coverage and home systems worth it? The answer is yes. However, you need to know that homeowners’ warranties are different and there are some things they do not cover. Make sure that you understand the terms and conditions before you make a commitment.
What is a home owners’ warranty and why do you need it for your home?
A homeowner’s warranty contract is very important to you because it can protect you from paying out of pocket when your appliances fail. As long as your systems are properly maintained you can rest assured that you will not need to pay the full amount for major replacements in your home.
When one of your appliances fails, you will need to call the homeowner's warranty provider and make a claim. Since warranty providers work in unison with service providers such as plumbers and electrical contractors, they simply request a service provider to visit your home and assess the damage.
An assessment report is then drafted showing the damage extent and the cause of the damage to the appliances. The homeowner's warranty company will then confirm if the policyholder's contract offers protection for the damaged appliances. If approved, the homeowner's warranty provider will proceed to repair or replace the system.
However, a home warranty should not be confused with a homeowner’s insurance. If your house burns to the ground, a home warranty will not be of help. When you pay for a home warranty plan, it will pay for service repairs and even replacements of certain items such as HVAC and plumbing. A homeowner’s insurance on the other hand will cover both the building and the contents in the home in the event of an accident, fire, or flood.
Let’s Look at Some of The Reasons Why You Should Purchase a Homeowner’s Warranty In 2022.
- Peace of mind
One of the main reasons why you should pay for a homeowner’s warranty is because it offers peace of mind. The last thing you need in these tough economic times is an unexpected breakdown of your HVAC or a broken heater and your budget is already stretched to the limit.
If your finances are at a knife-edge and your fridge stops working, chances are you may not be able to fix it or buy a new one for some time. However, if you have a warranty in place, you will simply make a call and inform your warranty provider that your appliances have broken down. The service provider should be able to take it up, do an assessment, organize for repairs, and if repairs are not possible due to the extent of the damage, they should replace the system altogether.
The truth is homeowners' warranties do not come cheap. But, because you pay a fixed price monthly, it is much easier to plan and budget for as compared to receiving a hefty bill at a time when you are not prepared.
- Home owners warranties provide for quick and easy repairs
A homeowner’s warranty will give you one major advantage and that is your repairs will be tackled faster and with ease. This is because you will not need to go out to look for a suitable contractor to come and fix the problem.
The stress of making frantic calls at night looking for an electrician to come and deal with a sudden problem is eliminated. You will also not need to worry about shoddy workmanship because you can be sure that if you are working with a reputable homeowner’s warranty provider, they will definitely send you the best. And in the event, something goes wrong, the service providers will deal with it, not you. That is much easier than having to coordinate all the service providers by yourself.
