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Buying a home is an expensive endeavor. The entire process, including the purchase and move into the home, can really put a strain on a person’s finances. Many people, after they purchase the home, do not plan, or are able to afford a major repair expense.
Unfortunately, when purchasing a previously owned home, it is impossible to know how long the systems in the home or the appliances will last. If something breaks down, new home buyers may not be able to afford to have it repaired or replaced. Fortunately, a home warranty can help in these situations.
Cost of a Home Warranty
For many homebuyers, an additional expense may be difficult to add on to the cost of the home. However, these costs may prove to be a great saving if something breaks in the home. Homebuyers can get a quote from 2-10 HBW to find out the potential cost of a home warranty.
By exploring quotes and options available in a home warranty, homebuyers can determine the best plan that fits their budget. After they move into the home, they will have their systems and appliances covered if something happens. In the end, the warranty will end up saving them hundreds or even thousands of dollars in protection for these issues.
Difference Between a Home Warranty and Homeowner’s Insurance
Homeowner’s insurance provides homeowners with the protection they need in cases of unexpected events. These coverages include storm damage, fires, and can even protect against flood damage. Homeowner’s insurance also provides liability protection in case someone is injured on the property.
A home warranty provides coverage for events that are somewhat expected. Most homeowners expect that their heating or cooling system will eventually break down. Homeowners can expect that at some point, their refrigerator will stop working. A home warranty provides repair and replacement coverage for these situations.
Advantages of a Home Warranty
A home warranty can provide new homebuyers protection and peace of mind with the various systems and appliances in a home. This can provide cost-saving benefits for those who have a tight budget after purchasing the home and moving to a new area.
When first moving in, many people may not know the area or can identify trusted repair services to help with a breakdown. Most home warranty companies offer assistance in finding those professionals to make the repairs.
This warranty can also provide benefits for those who are not very handy with repairs on their own. It is also very helpful for older homeowners that can no longer manage such issues on their own. Either homeowner can simply call the warranty company when there is an issue and they will help get it repaired conveniently.
Disadvantages of a Home Warranty
There are some disadvantages to having a home warranty that homebuyers should be aware of before making a purchase. Coverage and limits can vary greatly between home warranty companies and warranty plans.
Some companies may have a dollar limit on the warranty. This can make it difficult to get proper repairs or replacements. The warranty company may also make all the decisions as to whether the covered item should be repaired or replaced. They can even offer a replacement that differs greatly from the original appliance or system.
There are also some limits to coverage that the purchaser may not be aware of. Some companies may require records of maintenance throughout the life of the system or appliance. This can sometimes be impossible when purchasing a home. Some companies may use that as a reason to deny the claim.
Types of Home Warranty Coverage
The typical home warranty plan will cover eligible home systems and appliances that can break down due to normal wear and tear. Depending on the type of breakdown and the condition of the covered item, the warranty will cover the cost of repairs or replacement of that unit.
Homeowners can choose between a basic plan that covers the systems of the home or the major appliances. There are also optional additions to the warranty that can provide coverage for other appliances in the home or even some structural aspects of the home.
Systems Coverage
When adding a home warranty to a home, home systems are typically covered. Home systems include many of the major systems that keep the home running properly. These systems are often costly to repair and many homeowners can find major savings when one of these systems break down.
Home systems usually include the air conditioner and the furnace. The plumbing and water heater are also aspects of the home that are covered in a typical warranty. Many home warranties also cover the electrical panel and the electrical wiring in the home.
Basic Appliance Coverage
The typical home warranty will also cover the basic appliances in the home. When these items break down, it can bring many of the functions of a home to a grinding stop. With a home warranty, homeowners can get these items repaired or replaced without worrying if their budget will allow it.
The basic appliance coverage includes the appliances that keep a kitchen running. This includes the main refrigerator, the oven, and the dishwasher. It can also include a built-in microwave. In addition to kitchen appliances, this coverage also includes the washer and dryer in the home.
Optional Coverage
Many homes have other appliances that are not typically covered by a standard home warranty. This does not mean that these appliances are not important to the homeowner and that a breakdown can be a difficult issue for them to manage. This is why there are options that can be added to a home warranty.
Additional coverage can be added to a home warranty to cover other appliances in the home. This can include A well pump, septic system, or even a water softener system. Additional coverage can be added for wine coolers, extra refrigerators, freezers, or even a pool or spa system.
Structural Coverage
Homeowners even have the option to provide additional coverage to their warranty that can provide protection for various structural aspects of the home. Coverage can be added for roof framing, floor framing, or even the foundation and footings. They can even cover the workmanship of various repairs to the structure of a home.
Although a homeowner’s insurance policy can provide protection for unexpected events, it is often the expected events that can really hurt a household’s budget. A home warranty provides the protection needed to allow homeowners to feel safe and comfortable in their own homes.
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