As you start planning on buying a new home, there are many questions that will come up in the process. One of those questions may be whether or not you need home warranty insurance. But what exactly is that and why would you need it? Complete Protection is here to help you answer those questions and see if the purchase of home warranty insurance is right for you.
Do I need Home Warranty Insurance?
The short answer is that not every home will need home warranty coverage. As the homeowner, you should only get warranty plans on your appliances if it makes financial as well as practical sense for you to do so. Home warranty insurance is an appliance repair contract that will basically take care of repairs to electrical, plumbing, and appliances inside your home. Just like any other insurance plan, you will pay a premium in advance for repair or servicing of most appliances in your home.
If you have already owned your home for a while, having this home warranty insurance can just add peace of mind and help protect your wallet from expensive repairs. Having this insurance allows you to call the service provider of your policy, and they will come do the repairs or replacement in a reasonable time frame. It is a good idea to look into home warranty insurance unless you have quite a bit of time on your hands and like fixing things yourself. If you do not have a home warranty plan in place and are curious of the cost, you can always get an estimate on home warranty insurance for your home. You can see the protection plans we offer at Complete Protection here, or call us for more information at 1-800-978-2022!
Benefits of Home Warranty Insurance
If you are a new homebuyer, you may have a few fears of having a major repair bill coming too soon after you move in. This is a valid fear, since you can't really know what the appliances went through before your purchase. Sometimes the real estate agent will offer you home warranty insurance to help close the sale of the house. This may be something the seller pays for, but if it is up to you to pay, just know that home warranty insurance has an average price of $300-$500 a year.
Having this home warranty insurance as soon as you move in will be a great way to ease your mind in case you find something that needs a repair sooner than you thought. Just make sure you do your research on the home warranty company you use as you do get out what you pay in. You want to make sure they are a reputable company and will be there when you need them.
If you are selling a house, home warranty insurance can also be very useful for you. It helps raise the selling price and speed up the closing process. The insurance can put the buyer more at ease and make the sale more tempting. Check out Complete Protection’s blog on how home warranties help sell houses for more information.
How Does a Home Warranty Plan Work?
Home warranties are fairly simple. If you have an appliance in your home, like a garbage disposal, washing machine, or the HVAC, break down or have a malfunction, all you need to do is call the home warranty company and they will arrange for a technician to come by your home and fix the problem. Many companies have service fee, and this would be that deductible that was mentioned earlier. Note that there are some home warranty companies that will offer a zero-dollar deductible as well.
Should I Purchase Home Warranty Insurance?
Below is a list that you may want to follow if you are on the fence about the purchase of home warranty insurance. If any of these are true, home warranty insurance may be right for you:
- You have appliances that are getting old.
- Your home is more than 5 years old.
- You do not have time or patience to get any of the repairs done yourself.
- You do not have a trusted contractor to call and you do not want to cold call contractors for the job.
- You do not have a cash cushion to handle the costly repairs out of pocket.
- You are buying a home for the first time.
If you are a first-time homebuyer, it is suggested that you get some kind of home warranty coverage. New homeowners are usually short on extra money, as they have just purchased a house and added many new expenses to their budget. It is not worth the risk should your HVAC go out shortly after you move in and you do not have the money for the repairs. New homeowners are also often used to living in apartment complexes, where you tend to call the landlord in the event of an issue and let them handle it. Home warranty insurance allows you to follow this same lifestyle and not have to worry about contacting other companies yourself.
What to Know About Home Warranty Insurance
It’s important to know just exactly what is covered and how much coverage is provided with your home warranty insurance. This list may change depending on which company you use and which services you decide upon, but they can include:
- Inside electrical systems.
- Appliances, large and small.
- Heating and air conditioning.
- Interior plumbing.
- Pool fixtures.
How Much Does it Cost?
The price of home warranty insurance really depends on the type of coverage you want and the city in which you live. It’s a good idea to call and get price quotes from different warranty companies, and they will go over everything with you. Make sure you check the reputation of all the companies you call. There are websites that will help you with that by listing reviews of the companies and which ones have the better reputation.
As you shop for home warranty insurance, you will first need to understand that there are different levels of coverage, and in some cases, it may cover one thing but not the other. You should have a general idea of how much coverage you want and how long you want it.
You need to also be aware that with most home warranty companies, they are usually more interested in repairing the appliance and not replacing it. In most cases, they will service units only if the fault is due to regular use. If the unit is poorly maintained, they may not service at all. Also be cautious of pre-existing defects in your appliances, since most policies do not cover these issues. Lastly, you may discover that most home warranty insurance policies will not allow for the policy to take effect unless you have stayed in the house for at least 30 days.
Overall, as with any major purchase, it is in your best interest to look into several home warranty companies and see if it something you need and can afford. Look at your bottom line and double-check your finances. If you are a first time homebuyer, you have older appliances, or you just want the relief of not worrying about how to do repairs, it may be a great choice for you to get some type of home warranty coverage!
While you’re deciding whether or not to purchase home warranty insurance, check out Complete Protection’s blog, which gives tips for preventative maintenance for your appliances. Keeping up with such maintenance keeps your appliances running smoothly and lengthens their lifespans greatly.