Home warranties can offer a safety net for potentially recurring or significant expenses. A home warranty aims to protect the home’s appliances and systems from the usual breakdowns due to wear and tear. It’s different from homeowners insurance because the latter covers main hazards like natural disasters, property crimes, and some kinds of water damage, whereas a home warranty focuses on specific aspects of the house.
Home warranties are best for those who lack an emergency fund in addition to homeowners who aren’t into fixing things themselves or have expensive appliances. It is also advisable for clients who are buying homes as it serves as protection against house defects that may immediately arise after the sale. A Kansas City real estate agent lays out the positives and negatives of home warranties as well as the specific appliances that should be included in home warranties.
Pros of Home Warranties
If your home has a warranty, you’ll get discounted services. A basic home warranty includes a lowered, flat-rate fee for services, which means you can save money compared to not having this warranty. In fact, you may cut the service call expenses even further with upgrade options in your contract.
You can improve coverage for additional fees, such as pool and spa repairs and maintenance of several air conditioning units. Furthermore, you can negotiate for the inclusion of pre-existing conditions or problems that existed even before the policy was taken out. Covering old problems can spell the difference between bankruptcy from utilities and maintenance work and a better financial standing.
Home warranties can provide big savings for the usual repairs. Some of the typical items in a home warranty are air conditioning units, water heaters, electrical systems, and heating, which can be expensive to repair. To prevent these expenses from cutting a big chunk out of your savings, get a reliable home warranty.
A home warranty is not that expensive and does not need to be paid in full upfront. The policy can cost several hundreds of dollars a year which you can usually pay on an installment basis. Newer homes may have a more expensive home warranty though, but it’s worth it because someone else will cover the expenses for large items that break down within the first year of home ownership.
Cons of Home Warranties
Home warranties have limitations including non-coverage for several home types. Some home warranty companies don’t offer it for mixed-use or commercial properties. They think the fees are not enough to cover the wear and tear from business operations.
In addition, it is the warranty provider that decides when and if the appliance or system should be repaired or replaced. Sometimes, even when the item should be replaced, the provider may choose to repair it instead to lower expenses on their end.
Likewise, warranties have specific coverage conditions. They include only wear-and-tear effects and not acts of nature. Home warranties also have caps per incident and per appliance or system.
A home warranty has its own repair service providers. You cannot choose service companies you know. Furthermore, the warranty providers will provide the time period for repair. It is possible to wait for several days before getting something repaired.
While home warranties have their limits, it is recommended to have them and here is what you should include. The following are the appliances that must be covered since it takes a lot of money to have them repaired: refrigerators, LED/LCD televisions, washers/dryers, ovens, and air conditioners. Refrigerator repairs can generate a bill of $2,000, while thermostat repair for ovens can go beyond $1,200.
Get a home warranty for peace of mind and lower expenses in the long run, says an experienced Kansas City real estate agent. If you’ve just depleted your savings after buying a home, such warranties prevent additional upcoming expenses. To know more about warranties and existing properties for sale, contact an exclusive buyer’s broker who can help you make better decisions through a wide range of services throughout the whole home buying process. T.J. Lamb Real Estate. Call us today! 816-224-4393.