Should You Get a Home Warranty?
Yes, if you own a property. Home warranties are an outstanding way to protect your investment in case something goes wrong with your HVAC system or appliances. These warranties can also be a lifesaver in times of emergency.
While many think that home warranties are only vital for new homes, even older houses can benefit from having a warranty on their appliances and systems. You need to know most homeowners insurance policies cover damage resulting from natural disasters such as floods and fires. In case something breaks down due to normal wear and tear, and you have coverage for it – and that’s no fun.
So what about those who rent? In a perfect world, your landlord will be responsible for fixing and replacing anything that should go wrong with the property. However, you still can utilize a home warranty to protect your own property should anything break or need repair. Even if you don’t own your house, a warranty can still protect you against major expenses that involve professional installation.
Are Home Warranties Worth It?
Home warranties are worth it most of the time, but it depends on your position. Suppose you have extra money to spend on repairs, then a home warranty might not be for you. But if you’re looking for protection against unexpected costs, then it’s definitely something to consider.
To be sure, consider the following pros and cons to draw a conclusion as to whether a home warranty is worth it or not.
Pros of Home Warranties
1. You Get Peace Of Mind
The security of knowing that when something goes wrong, you have someone to fix it is priceless. Therefore, by having a home warranty, you know every issue can be handled by the company without any additional stress or hassle on your part.
2. Cost Savings
A home warranty saves you money by eliminating unexpected repair costs. It’s like having an insurance policy for your home. For instance, HomeAdvisor reports that the national average cost for replacing central air-conditioning goes for $5,750, and a water heater installation costs around $1,000, thus a lot of savings.
Suppose you transfer ownership of a house with a home warranty still in effect. The new tenant will be able to use the coverage as long as they keep paying premiums. It means that even though you aren’t around, someone else will be protected from unexpected repairs or upgrades.
4. No Deductible
Many home warranties don’t require any deductible. That means in case an issue results, you won’t have to pay anything out of pocket for the correction.
If anything goes wrong, it can be an issue to fix and pay for it. Thankfully, with a home warranty, you no longer have to worry. You simply call the company, give them the details, and wait for them to take action.
6. Flexible Coverage
Home warranties can cover a variety of items in your home. For instance, starting from appliances and plumbing to air conditioning systems, among others.
Here, you choose the coverage that works best for your needs and budget. Therefore, you don’t have to worry about being left out in the ‘cold’ if anything goes wrong with your HVAC system or plumbing.
Cons of Home Warranties
1. Limited Coverage
Some home warranties only cover the major appliances, while others may offer protection for everything. Suppose you want to be covered for every little thing; thus, ensure you know what that warranty covers and how much it will cost before the contract.
2. You Will Have Less Control
Due to a third party involved in the process of obtaining a home warranty, homeowners are often at the mercy of that company when it comes to repairs. In case anything goes wrong, you have to wait until the company is able to make repairs, which might take some time.
3. Different Policies among the Warranty Providers
Every home warranty is different; therefore, ensure you understand how something is covered by yours before signing up. For instance, some policies offer repairs only, while others also cover replacements.
Who Should and Who Shouldn’t Purchase Home Warranties
Everybody’s situation is different, so it is important to think through yours before jumping into a home warranty.
Consider getting a home warranty if you:
- Need insurance that will cover the cost of unexpected repairs.
- If you own an older property.
- Your house appliances are old.
- You are unable to set up an emergency fund.
- Don’t have the expertise level to do the repair alone and fear causing more havoc.
- Want a peace of mind from unexpected costs for repairs.
- You don’t intend on living in your home for quite long.
- You don’t know whether your items have been properly maintained or you do know that they haven’t.
- If the cost of a home warranty may be more than the cost to repair or replace any items that break.
- In case you prefer to hire your own contractor instead of letting the warranty company choose.
How Do I Find a Good Home Warranty Company?
To avoid bait traps, you should make sure that the company you’re considering is not a scam. The Better Business Bureau (BBB) is a significant resource for this. They’ll let you know of any complaints against the business. This will include what kind of reputation they have in general.
In the event there aren’t any complaints against the company, then it’s likely safe to use them. However, this is still not 100% guaranteed. It’s still vital to do some research. Check out their website and ensure it looks professional and clean—that’s usually a good sign.
Contact Us for Help in Buying and Selling a Home
Buying or selling a property is one of the biggest decisions you will ever make. It’s not just an investment but an emotional decision that can be stressful and confusing. Thankfully, we are here to help you navigate through this process with ease. You can trust Midwestern Realty Group LLC to provide you with honest, friendly advice, so you feel confident about your real estate decisions.
We have served our clients for years and built up a large network of experts who can aid you in finding a new place to live or selling your current residence. Our experts work tirelessly on your behalf so that we can get you into your dream home as quickly as possible. So to get started with our services, or if you have any questions concerning property ownership, please contact us today!