There are many items that you purchase that probably came with a warranty. For example, electronics, smartphones and even vehicles come with a warranty. However, what about your home? The good news is that you can also get a home warranty for an added layer of protection.
Exactly what type of warranty is this? In a nutshell, this type of warranty is a policy that you pay for and it covers any cost of repairing appliances in your home in case they are defective or break down. A warranty for your home will provide you with financial protection in case you are faced with unexpected issues with their appliances.
Most people purchase a warranty for their homes when they close on their loans. They do this because they know that the warranty will provide them with a peace of mind knowing protection is in place if they are hit with an unexpected and expensive repair after they move in. Just imagine how upset you would be if you were to wake up to a broken water heater or a leaking refrigerator just weeks after you move in.
What Is Covered In These Types Of Warranties?
It is common for people to mistake these warranties for homeowner’s insurance. However, they are two different types of coverage. Insurance provides coverage for your belongings as well as the structure of the home in the event of fire, flood, storm, theft or other occurrences.
On the other hand, a warranty will cover replacements and repairs for appliances and systems that become damaged due to wear and tear. No calamity is necessary in order for a warranty to take effect.
A warranty for the home will cover:
- Garbage disposal
- Plumbing systems
- Electrical systems
- HVAC system
Although home buyers are required to purchase insurance with their mortgage, warranties are optional purchases. The average cost of a basic warranty for a home is around $300. These warranties can extend all the way up to $600 if you want a plan that is more comprehensive. For example, you can choose to add coverage for an external well or a swimming pool. You can purchase a warranty for your home at any point, but the most providers will give you the best deal if you purchase the warranty at the same time you purchase the home.
If you purchase a warranty during the same time you close on your home, you will likely secure the most comprehensive price points and coverage. You are also given the option of renewing your warranty every year or you can choose to forgo the warranty.
A home buyer can enjoy the benefits of a warranty for the home by having the reassurance they can move into the home without having to spend money on unexpected repairs. These warranties can benefit the sellers as well. The appliances in the home will be covered during the time the home is listed and while it is on the market. There are some companies that will even provide home sellers with free warranty coverage in hopes that the buyer will keep the coverage after they close on the loan.
Unfortunately, there are people who believe that a home warranty is not important. For many home buyers, they tend to lean towards the fact that it is better to be safe than sorry when they are buying a home.