What Do You Get With a Home Warranty?
By now, you’ve likely seen the ads, gotten the emails, and maybe even hung up on a few robocalls going on and on about the benefits of a home warranty (also known as a Residential Service Contract). Are they actually worth getting though? Let’s take a closer look at warranty plans and what they really have to offer. This will help you to decide if purchasing one is right for you or if it would just be a waste of your money.
What Is a Home Warranty?
First of all, just what is a home warranty or residential service contract? This is an important question because many people don’t actually know what a home warranty is and what it is used for. A common assumption is that it is like some version of homeowners’ insurance, perhaps offering short-term coverage after closing on a home. While the timing aspect is pretty close, it is actually significantly different than a homeowners’ insurance policy. Instead, a warranty plan covers certain things within the home to allow for their replacement in case they break soon after buying the property.
What Does a Home Warranty Include?
The specifics of what a warranty plan covers can vary a bit depending on the specific plan you purchase. In general, they are designed to cover major systems and appliances within the home. When you’re buying a home, your home warranty will have you covered if something like the refrigerator or water heater breaks down a few months after you move in. In most cases, major systems such as plumbing and HVAC are covered as well. The policy functions like most standard warranties, allowing you to get needed repairs or replacements while the warranty is still in effect.
What’s Not Covered?
Unless it’s specifically mentioned in your plan or coverage, general home repairs or other maintenance are not included in the warranty. This means that something like a broken window, a weak spot in the floor, or peeling paint would have to be repaired as an out-of-pocket expense if they aren’t covered under your homeowners’ insurance. The home warranty is designed to cover only your new home’s appliances and major systems.
How Long Do Home Warranties Last?
Again, the term of your warranty depends on the specific warranty policy you take out. One of the most common warranty periods is one year, giving you a full year’s worth of peace of mind after you take out the policy. Depending on your needs, however, you may be able to get a plan for shorter or longer periods as well.
Can You Add Extra Services?
Depending on the home warranty provider you choose, there may be add-ons that you can include with your warranty service for an additional cost. These can include things like swimming pool maintenance and repair, well maintenance, and expanded services such as maintenance tune-ups for your HVAC system. Some providers even use add-ons to create customizable warranty plans, offering up a basic general plan and then expanding it to meet your needs by letting you add only the features you want.
Do You Need a Home Warranty?
Whether you actually need a home warranty or not is kind of a big question. The answer depends on a lot of factors including the age of the home that you’re buying, the amount of coverage you get from your homeowners’ insurance, and even what you have in the house that would be covered by the warranty plan. The price of the warranty plan should also be a consideration since this can vary by several hundred dollars depending on the provider and the amount of coverage included. The right warranty can be a good buy, but it’s worth looking at the cost and coverage to make sure the plan is actually what you need.
Solid Home Warranty Advice
Whether you’re in the market for a home warranty or still on the fence, I can hook you up with someone who can answer all of your questions. Check out my list of preferred service providers to get connected today!
If you got value from this post regarding “What Do You Get With a Home Warranty?,” share it on social media and feel free to comment below.
P.S. If you are looking to sell your home, be sure and get my Special Report “29 Essential Tips That Get Homes Sold Fast (And For Top Dollar) by CLICKING HERE.
P.P.S. If your listing has expired and did not sell, get my Special Report “20 Questions You Absolutely Must Ask Your Next Agent Before You Sign On The Dotted Line (And Make The Same Mistake Twice)” by CLICKING HERE.
P.P.P.S If you are looking to buy a home, you need to get my Special Report “How To Avoid Paying Too Much (A Simple Guide To Help You Avoid Overpaying For Your Home.) by CLICKING HERE.