Home warranty what is it? There are a few reasons that home warranties make sense for homeowners. The most obvious is that they provide peace of mind. A yearly premium and a phone call can save you from expensive, unforeseen repair bills.
They’re also a great idea for new homeowners who aren’t familiar with the maintenance history of their appliances and systems.
Peace of Mind
A home warranty provides a financial buffer in case an expensive appliance or system breaks down. For a small monthly or annual fee, you’ll get service calls to fix your appliances and systems, plus a replacement cost allowance.
Buying a warranty at the time of a real estate transaction typically offers the best value and coverage. However, you can also buy one after you move in if you want the added peace of mind and convenience.
Keep in mind that the home warranty provider will choose its own contractors to perform repairs, and you’ll have limited choices when it comes to selecting a repair person. For some, this can be a deal-breaker for the benefits of a home warranty. If you’re not comfortable with this, you may want to skip the home warranty and save up for an emergency fund instead. You should also read reviews and testimonials to determine if a specific company is reputable.
First-Time Homebuyers
First-time homebuyers especially benefit from a home warranty. After putting down such a large sum of money all at once, it can be easy for new homeowners to forget that the costs of maintaining their home don’t stop once they close on their house. A home warranty from 2-10 Home Buyers Warranty (or any other provider) can help reduce the constantly rising costs of homeownership.
Rather than having to set aside thousands of dollars in a rainy-day fund, a new homeowner can simply pay a small service fee to fix their broken appliances and systems. This financial protection can make a home warranty worth the cost for millions of homeowners.
Regardless of whether you’re buying your first home or selling one, the benefits of a home warranty can be seen by everyone from real estate agents to home sellers. But it’s important to carefully research any home warranty company and plan before purchasing. Check their customer testimonials, BBB rating and reviews to make sure they’re a legitimate business that can be trusted.
No Emergency Fund Required
Purchasing a home warranty limits the amount you have to pay out of pocket when an appliance or system breaks down. This can help you avoid depleting your
emergency fund or putting yourself in debt when a costly repair bill comes due.
A home warranty can also make budgeting easier by allowing you to predict your expenses and limit surprises. However, the fact that you do not have control over which contractor performs a repair or replacement can be frustrating for some homeowners.
Ultimately, it is up to each homeowner to decide whether a home warranty makes sense for their situation. Be sure to carefully read a contract before making a decision and look for reputable companies that have a good track record. The peace of mind that a home warranty can provide is worth the investment for many people. However, if you do not have the extra money to pay for a home warranty, consider setting up an emergency savings account instead.
Save Money
Home warranties cost money, but they can save you a lot more. They can help minimize the out-of-pocket expenses for a broken appliance or system and protect you from depleting your emergency fund. They can also save you the headache of searching for reliable contractors when your stove breaks or your air conditioner dies.
Generally, home warranty companies require a contract waiting period, and many have exclusions, which can make it difficult to understand exactly what they cover and don’t. For this reason, it’s important to read through customer reviews and testimonials to get a better idea of what to expect from a particular provider.
Although you’ll pay a monthly or yearly premium, a home warranty can mean big savings on maintenance and repair costs that would otherwise wreck your budget or leave you draining your emergency fund. For these reasons, home warranties are worth the investment for many homeowners. It can be a smart move for first-time homebuyers, especially.
