Do you have enough money on hand today to replace your water heater? What about your air conditioning? If you’re like most of the population, you don’t. When these features begin to disintegrate or malfunction over time, we try to stay ahead of it by contracting smaller repairs, scrambling to save money just in case, or borrowing the money when it just stops working. Home warranties, however, make it a lot easier.
A Home Warranty Is Not an Insurance Policy
Homeowners are often required to get insurance for their houses. Insurance policies are intended to cover disasters and emergencies, like fires and damage from weather events. Home warranties are not required, but cover your systems and appliances, which aren’t designed to last a lifetime.
In short, you absolutely still need your insurance policy. Home warranties are there for times in which your insurance policy may not help.
How a home warranty works is pretty simple. Once you do some research, namely by checking out House Method home warranty reviews, you’ll choose the company that seems right for you. You pay a few to several hundred dollars annually for your warranty, all at once or in installments.
Most companies will offer different plans with which you can customize your coverage. A basic plan can cover everything from your plumbing to your doorbell. When and if these things need fixing thanks to normal use – not because you’ve broken them – you call your warranty provider, and they send a contractor. You don’t have to worry about finding the right person to do it.
Once it’s fixed, you may be on the hook for a service charge or a sum up to the deductible.
Who Needs a Home Warranty?
If your home is brand new, you probably don’t need a warranty, as normal wear and tear on systems and appliances hasn’t occurred at all yet. Those new appliances will also probably be under factory warranty. But if you buy an older home with aging appliances, a warranty may be just the solution you need.
In fact, many go for the warranty when they close on a pre-owned home, just so they won’t have to worry about things like the oven or washing machine breaking down on them at the same time they’re dealing with moving expenses. A warranty can also make your listing more attractive to buyers if you want to sell your home.
In addition, it’s good to consider a warranty if you care for and properly maintain your aging appliances. We all know that routine maintenance doesn’t mean it will work forever, and warranties usually only cover appliances and systems that broke down despite your decent treatment of them. This is especially important if your appliances are very expensive, and repairs and replacements are therefore costlier.
If you’re looking to a buy a pre-owned home, you should ask the seller if a warranty is included. If you’re already an owner who is experiencing anxiety over the potential loss or breakdown of essential appliances that are getting older, a warranty might also be in order. Just be sure to read that fine print and verify you have the kind of coverage you can use.