Home Warranty Benefits For Homeowners
Home warranties offer a level of protection that can save time, hassle and money for homeowners. But before you decide to purchase one, read the contract carefully.
Unlike homeowner’s insurance, which protects against catastrophic damage to the home, a home warranty covers normal wear and tear on household systems and appliances. Here are five reasons why a homeowner can benefit from home warranties.
- Peace of Mind
Having a home warranty can relieve homeowners of the stress that comes with unforeseen appliance or system failures. For a fixed monthly or annual fee, they have peace of mind that these repairs and replacements won’t wreck their budget or deplete their emergency fund.
New homeowners often get home warranties from sellers as part of the closing negotiations. But they can also buy them to give themselves peace of mind and to recoup some of the upfront costs that come with purchasing a home.
Many people consider home warranties worth the cost to have a buffer against unexpected expenses. However, if a homeowner has a hard time trusting the company that provides the service and doesn’t like having to choose contractors from a list provided by the home warranty provider, it may not be worth the investment.
- Predictable Budget
Home repairs are an inevitable part of homeownership, but they can deplete your savings. Home warranties provide a way to alleviate the stress of costly repairs by covering them.
Depending on your chosen plan, you may be covered for appliance replacement, HVAC maintenance and possibly plumbing problems, among other things. Note that home warranty plans generally do not cover acts of God, like hurricanes or floods (that’s what homeowners insurance is for).
If you’re shopping around for a service contract, consider asking companies to send sample contracts to review. They won’t fully reflect the specifics of your final contract, but they can give you an idea of what to expect. New homeowners can sometimes negotiate to have a home warranty included in the sale of their house as an incentive to entice buyers.
- Increased Home Value
Whether your home has old or new systems and appliances, the reality is that these items wear down over time. Repairing or replacing these systems and appliances can add to your home’s value. Including a home warranty in the sale of your home
can help offset these costs, as it offers potential buyers protection against unexpected expenses.
In addition to instilling buyer confidence and differentiating your property from the competition, offering a home warranty can also speed up the sales process by simplifying negotiations and closing dates. This makes a home warranty an attractive option for sellers who want to sell their homes on their terms and in the quickest time possible. Generally, a home warranty will cover systems and appliances that are within their manufacturer’s warranties.
- Convenience
Home warranties can be a reassurance for homeowners who don’t have the DIY skills or finances to handle unexpected repairs or replacements. In most cases, a homeowner can call the warranty company and schedule a technician to come to the home to repair or replace an appliance or system.
This is especially valuable for new homeowners who might not know what to do when an important home system or appliance goes down. The home warranty company handles all the necessary work, from scheduling to the actual repair, for a small service fee.
Additionally, many home warranty companies offer add-on coverage options (for an additional cost) that can cover a pool, lawn sprinkler system, septic system or an external well. This helps homeowners customize their plan to fit their specific needs.
- Reputable Contractors
Home warranties (or residential service contracts) are similar to insurance in that the consumer pays a premium for repair and replacement services. However, unlike homeowners’ insurance that protects the homeowner regardless of who caused the damage, a home warranty may limit a homeowner’s choice of contractors or may have exclusions or dollar limits.
Many people consider home warranties to be a necessity and enjoy the peace of mind it provides when it comes to repairs. For more information on service contracts or understanding warranties, https://www.cinchhomeservices.com/faq-library/-/faq/home-warranty-california and sites alike provide good information.
