One of the biggest questions realtors get when purchasing a home, is there a need for a home warranty. If you are a first time home buyer, as a renter you are used to a landlord that would fix any issues you run into – but that all changes when you become a homeowner. Now, when the water heater breaks down or your furnace is not heating in the middle of the winter, or when that fridge starts to leak there is no landlord to call. So what do you do now? You may have a family or friend or boyfriend/husband who can handle the smaller fixes, but when it comes to the big ticket items that will require a professional that may cost a pretty penny. That is where a home warranty can save the day.
A home warranty is similar to insurance, it covers some or all of the costs of replacements or repairs when a system in your home malfunctions or stops working altogether. They range in annual costs of $300-$900 and remove the middle man in the fixing process. Instead of finding someone to fix an issue, you will directly contact your warranty provider and they will setup the repair or refer you a local contractor. Your premium usually covers all the costs, with the exception of a co-pay which is typically around $50 or so.
If you’re wondering who should buy a warranty, they are usually recommended for first time home buyers who have rented up until that point. When you are used to having a landlord, a home warranty can fill that role in a different way. Home warranties are great for homes with both members in the work force outside of the house or just busy family members who can’t always be home to wait for the repair person window or find the time to even get quotes for the best repair shops in the area. Home warranties aren’t just for first time buyers, though. If your appliances are nearing the end of their life expectancy, now would be a great time to get a warranty. If all of your appliances were purchased in the same time frame, you don’t want to face the costs of them all failing at the same time. Warranties can save you time and money, especially in the first year of ownership.
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