Home Warranty Programs
Buying a home is most likely the biggest purchase you will ever make. To protect that purchase and most of its components, some homeowners choose to purchase a home warranty. With many options available to consumers, these warranties can end up being a lifeline for an investment, where the only guarantee is that if it can go wrong, it probably will.
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Benefits
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Similar to the warranty you may have on your car, a home warranty is designed to protect the owner from costly repairs that may arise after you buy the home. Imagine your air conditioning going out and you having to replace it without a warranty; it can be costly, and according to US Inspect, can cost thousands of dollars to replace . The same can be said for appliances, electrical issues, plumbing or even structural repair.
With a warranty, as long as the item is covered, you typically will only pay a small "service call" fee, with the cost of replacing or repairing the broken item being covered by your warranty. These home warranties cost a few hundred dollars a year, but it could save you even more in the long run. Not only can it protect you against the hidden costs of owing a home, it can also provide you with a little peace of mind.
What's covered
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Every home warranty is different, with each company covering different items at different amounts. But some of the most common components covered by all home warranties include: appliances, plumbing, electrical, water heaters, air conditioning, heating systems, garage doors, garbage disposals, pool, septic tank, hot tub, roof and more.
Additional items may be covered but at an extra cost. While no home warranty is identical, nearly all of them will not cover "pre-existing conditions," meaning any component that was already in need of repair or replacement before the warranty policy was purchased will not be covered. This is why some warranty companies require a 30 to 60 day grace period before any claims can be made.
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Warning
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As the consumer, know what is and is not covered before purchasing any home warranty. Make sure the details are spelled out in any contract before you sign it. If you are not sure, then ask, and get that answer in writing. Not only are you trying to protect your home but you are also protecting your wallet. Additionally, research a home warranty company before you buy from them. It is pretty easy to search for online reviews from customers of a certain company, and they will be your best indicator of how legitimate a company and home warranty policy is.
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References
- Photo Credit One year warranty gold medal image by patrimonio designs from Fotolia.com
