Understanding what a home warranty is may be important, depending on what type of home you plan to buy. Typically, a 10-year structural warranty and a 1 or 2-year mechanical warranty comes with new construction homes. However, if you buy an older home and if those warranties are not in place anymore, some of the features and fixtures may be covered by the home warranty.
Basically, a home warranty is a contract covering replacement and repairs on home systems and appliances. A common home warranty will cover the home for one year, but some warranties are longer.
What Homeowners Should Know About Home Warranties
When you buy a home with a home warranty plan, you can be covered for many parts of the home including:
- HVAC System
- And More!
Some home warranty plans can be customized to include things, such as a swimming pool, spa, stand-alone freezer, or well pump.
Is a Home Warranty like Home insurance?
No. A home warranty isn’t the same as home insurance and doesn’t act in the same way. While insurance will cover you in the event of a natural disaster, a home warranty protects your home’s systems and appliances if they breakdown due to normal wear and tear.
Homeowners insurance covers losses and damage from the unexpected, but likely won’t cover any loss or damage from normal wear and tear.
Who can get a Home Warranty?
Any home buyer, seller or homeowner can purchase a home warranty from a third-party company. Sometimes, sellers will offer a home warranty as a part of the sale.
Since a home warranty is an annual service contract, you can buy this type of warranty to cover your most vital home systems at any time. It’s important to note that plans and coverages vary and so do the fees for home warranties depending on the company you choose and the level of coverage you prefer. Always read up on what’s included and what’s not. Those warranties do not pay for everything!
How does Home Warranty Work?
After you’ve purchased your warranty plan if an appliance or system in your home breaks down and if it’s covered by your contract, the home warranty company will send a licensed service provider to assess the situation. As long as you are covered for the issue, you will just pay the service call fee and the home warranty company will take care of the rest. They will either repair the appliance or replace it or they might offer a nominal dollar amount towards a replacement. It all depends on your warranty contract.
When should you purchase a Home Warranty?
While you can buy a home warranty at any time, most homeowners consider desiring this type of coverage when they first move into a home. Not having to worry about maintenance on major systems of your new home for the first year can help relieve quite a bit of stress.
You just put a large amount of money down, paid to move, and purchased new furniture for your home. Your finances might be a little tighter than normal and having a home warranty plan for the first year of owning your home can help take some of the stress off your bank account.
Whether you’re buying or selling a home in Mint Hill, NC, a home warranty might be a good choice. As the seller, you can offer a home warranty to help entice buyers to purchase your home. If you’re buying a home and the seller doesn’t offer a warranty, you can purchase your own.
I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me. I will help you make the right move! Anna Granger 704-650-5707 | email@example.com | www.1stchoicepropertiesinc.com