Understanding the Importance of Home Warranties

Posted by Agatha Singer on Jul 6, 2020 9:00:00 AM

home warranty

Buying a house is a big decision and for a great number of people the biggest investment they will make in their lives. It is only logical, therefore, that when taking such a big step, you will want to do everything possible to ensure you get the best house you can afford.

This is why getting a home inspection is an essential feature of any good real estate deal. It will highlight any weaknesses that the property has and provide you with guidelines on how to maintain it. That said, simply following any tips you may glean from a home inspector’s report isn’t enough. You need to be proactive in the protection of both your home and your wallet. Investing in specialized policies which can cover you in the event of any major breakdown is a smart decision for any homeowner who wants to avoid spending a fortune on emergency repairs.

 

Why Home Warranties are Important

So, you’ve had your new property inspected and it was determined to be in good condition. That’s great news, but unfortunately many homeowners place too much stock into this. The truth is that even if your property is brand new and doesn’t have a single weakness, it still requires regular maintenance and specialized protection.

In fact, according to statistics, the average age of a property in the US is 37 years. And while this isn’t considered “old” for a human, it definitely is for a building. Even new properties with top-notch appliances and home systems made from the best materials require regular maintenance. That's why it is important to develop an effective maintenance plan for your new property and use warranties to protect you in the event of a major breakdown.

Warranties for your home or for its constituent parts, like roofing or plumbing, are similar to the manufacturer’s warranty you get when buying a new electronic appliance. However, the coverage offered by these policies should be much more extensive, since policies provided by appliance manufacturers only protect you in case the problem was caused by a defect of the device itself.

To truly protect your new home, you need to take out a warranty which will cover you in the event of any damage. This means you should either get a home warranty or an individual warranty for every separate component, as well as extended warranties for all appliances.

It is also worth noting that having a home warranty will also help you to sell the house if you choose to do so. Surveys found that properties with home warranty policies sell for $2,300 more and about 11 days faster than those without. The plan is easy to transfer to a new homeowner, and it makes buyers feel safer.

 

Tips on Choosing the Best Home Warranty to Protect Your Home

Home warranty plans vary in coverage, so the first thing you should do is to study the available options carefully. 

Pay attention to Terms and Conditions, especially the ones that detail exact warranty payout limits, as well as the terms of filing your claim. In many cases, the home warranty provider will require you to file the claim within 24 hours of the problem occurring.

Also be sure to study a variety of reviews when shopping for the best home warranty plan. You should read both professional reviews and testimonials posted by regular people who have used these policies themselves. Take reviews with a grain of salt though!

Gather information about the company through the Better Business Bureau as well as news articles, which are sure to announce any major legal complains and other problems the company faced during its history. Knowing these details will help you pick a home warranty provider you can trust to fulfill the obligations outlined by the policy.

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I’m Agatha Singer, owner of agsinger.com blog and a happy mother of two. I always stay open to new ideas and expertise to make my writings handy and captivating for you.

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