We all know when we buy something new, such as a grill or a phone or a dishwasher, we always know that these products come with a warranty life of a certain number of years just in case anything happens to the product and parts or the whole thing needs to be replaced. So many buyers and sellers ask me, well what about this kind of coverage for a home? The truth is, you can purchase what is known as a home warranty that will cover the cost of repairing many of your home appliances if they break down.
For buyers, this is something I recommend right off the bat that they purchase when they close on their new home. These warranties are made to help provide financial protection for buyers who might be faced with unexpected problems like a water-heater breaking down or a malfunctioning washing machine. When buyers purchase these warranties, they help lessen the worry but also help with the costs which can be great in many circumstances.
So what all does a home warranty cover you are probably wondering and here is a quick list of the coverage:
· Electrical systems
· Plumbing systems
· Heating and cooling systems
· Washer and dryer
· Kitchen appliances such as the oven, range, and garbage disposal
Buyers often ask if these are covered in homeowners insurance, which they have to purchase before they buy their home and the answer is that a home warranty is optional but it covers the things most insurance will not. Cost wise for the year it is very affordable with the basic coverage starting around $300 and can go upwards of $600. Homeowners also have the option of adding coverage for other things such as if they have a swimming pool in their yard.
While buyers get home warranties to provide reassurance and help out in many unexpected situations, home warranties also benefit home sellers because during the listing period of their house, if anything should go wrong, the warranty will cover the elements.
While it may not make sense for a buyer of a new build to buy a home warranty, I would recommend it to both my buyers and sellers as a better safe then sorry approach to cover them if anything should happen. Costs of appliances can add up quickly and this way you are prepared if anything should happen.