When and why you should opt for a home warranty.
How do you know if a home warranty is right for you? There are many different reasons why you might need a home warranty. To make a long story short, you should get one anytime you buy a house. BUT keep reading to learn why and what exceptions there might be!
Now let’s start with the exceptions. If you already own a home and you’ve been in there for a few years, a home warranty really isn’t for you. You’ve already worked out the kinks of your house and are aware of any concerns that might come up. You more than likely have already budgeted for repairs or have fixed them! Or if you’ve just purchased a brand new home, a year long warranty is typically included. Additionally, it’s not recommended for people buying homes who are really good at fixing things themselves. If you don’t fall under these three categories then buying a home warranty might be a great option for you. You can put one on at any time. It’s not very expensive and totally worth the piece of mind.
So, when do we recommend one? When you buy a house from someone. Similar to purchasing a car, when you buy a brand new one it includes a warranty. However, when you buy a used car it doesn’t include a warranty unless maybe you buy a certified warranty or maybe you get a 30 days or 60 days or 90 days, that’s the most a mechanic is going to guarantee your car. Homes are the same way. After you close on your home hopefully nothing from your inspection changed. But you’re more than likely going to use the home a little different than the last person did. With using the home in a different manner, there’s a good chance that something might break. Not because it was the fault of the person selling the house, but because they just may not have discovered that issue. So when you’re buying a home and you don’t want anything unexpected to come up, it may be a good idea to pay for a home warranty.
How much it costs and how it works:
The cost can vary anywhere from $400 to $800 dollars for a 1 year home warranty. Typically the more you pay, the more it will cover. Most of the basic plans don’t cover things like your major appliances ( washer/dryer, fridge) or they wont cover a big ticket item (roof or pool). Those are usually add on services. $400 dollars will not cover if you have those things or want those things included. But if you pay somewhere around $500-$600 dollars those things can be included sometimes and that can be a really good deal because if something breaks, you know it will be covered for a deductible. Sometimes you can get the sellers to pay for a home warranty. If you have an allowance, maybe a percentage or a dollar amountMaybe you budgeted for some home cost to be included in your purchase. Sometimes you can get the sellers to pay for a home warranty but you’ll want to do it at the time of closing. If you budgeted for some home cost to be included in your purchase, maybe you have a percentage or a dollar amount you’re allowed, that can be included on the closing statement. You can even do this for rental houses.
Here’s how it works, if you buy a plan $500-$600 and it covers everything, if something breaks in your house it will just cost you your deductible. Usually around $50-$75. You’ll call the home warranty company and they will send someone out to fix the issue. If they can’t fix it, they will replace whatever the item is. For example if you have a leaky faucet in the kitchen, another leaky spigot out front and an issue with the water heater, all plumbing issues, they will come out and fix/replace it for the deductible fee. However, if you have an electric problem, a plumbing problem and a roof problem all at the same time, that will be 3 different deductibles- $75 dollars multiplied by 3. At $225, it is still well worth the money spent compared to what it could have cost. Even if you go a whole year with no problems, you’re only spending $500- $600, and that is well worth the peace of mind.
If you need help selecting a home warranty, just give us a call or send us a message and well be happy to help you out with that.