When you purchase a new home, people usually consider location, amenities, employment, crime rates, and accessibility. However, a potential home buyer should also consider looking into home warranties and insurance when looking into Kansas City homes for sale.
Differentiating Home Insurance and a Home Warranty
Many potential home buyers tend to get confused between a home warranty and home insurance. While both guarantees protection of your property, home insurance only covers structural damage or loss caused by disasters like fire, earthquake, or flood. On the other hand, a home warranty covers specific home components from breakdowns mainly caused by normal wear and tear.
Newly built homes might not need a warranty, since everything is still covered by the manufacturer’s insurance. However, older Kansas City homes for sale should come with a warranty especially since age might inevitably cause problems with any of the home’s systems.
The warranty usually includes a list of discounted repairs and replacement services on several crucial home elements such as plumbing. It also covers some of the major appliances like washers and dryers. Getting a home warranty grants you some form of financial protection from unforeseen home appliance and system repairs.
Why Pay for a Home Warranty?
Though home warranty coverage can cost a few hundred dollars annually, the peace of mind that a basic coverage plan gives to new homeowners is definitely worth the price. A home warranty is especially useful for first-time homebuyers who are still inexperienced with regards to home maintenance.
A home warranty is usually offered by the seller, real estate agent, or exclusive buyer’s agent to help reduce the burden on their respective clients. Some would even offer a home warranty as a gift to their clients should they decide to buy the home.
There are different home warranty plans available on the market. However, all home warranties generally cover the same things: plumbing, electrical, heating and cooling systems, major kitchen appliances including the garbage disposal, and washer and dryer.
Despite the fact that home warranties can cover repair or replacement of appliances, not every home appliance can be included in the warranty. To make the most of a home warranty, you should consider those major appliances which have short life spans or those that would most likely be subjected to frequent breakdowns.
Air Conditioners and Furnaces
The ongoing climate change can take a toll on your home’s heating and cooling system, making both the air conditioning unit and furnace susceptible to frequent repairs. A simple A/C repair can cost a homeowner approximately $1000. With a home warranty, you don’t have to shell out a huge amount of money just to get the unit repaired and ready for use.
Refrigerators and Ovens
Just imagine living without any one of these major household appliance even for one day. The popular sub-zero refrigerator would cost almost $2000 in repair, while the average cost of an oven thermostat repair is around $1200. Since both repairs are expensive, it helps to know your service provider or contractor will fix your broken down appliances even if you are literally flat broke as long as it’s covered by a paid home warranty.
How Much can a Home Warranty Cost?
Depending on the coverage, payment plan, and home type (i.e. condo, single detached, duplex, etc.), the cost of a home warranty can vary. However, you must take note, the price of a home warranty is never affected by the home’s age unless it is an entirely new structure. The cost is also not affected by how large or small the home for sale is unless the property is more than 5,000 square feet.
Also, depending on preferences, a homeowner can get additional or extended home warranty coverage on top of the basic policy to better protect their property. The only limitation of home warranties is they will not cover appliances or systems that were not properly maintained by the previous owner.
Despite this one drawback, having a home warranty is still better than not getting one since it protects homeowners from the cost of major appliance breakdowns.
If you’re ready to look at Kansas City homes for sale, contact a professional exclusive buyer’s agent like T.J. Lamb Real Estate to see how we can help you find your ideal home. T.J. Lamb Real Estate – (816) 224-4393.