Understanding Home Warranty

Buying a home is a huge investment, and protecting that investment is just as important. One way to do that is by getting a home warranty. But what exactly is it, and how can it benefit you as a buyer?

Dishwashers may qualify under a Home Warranty

Understanding a Home Warranty

A home warranty is a service contract that covers the repair or replacement of major home systems and appliances when they break down due to normal wear and tear. Unlike homeowners insurance, which covers damage from events like fires or storms, a home warranty handles things like plumbing issues, HVAC failures, and faulty kitchen appliances.

Benefits of a Home Warranty:

• Peace of Mind: Knowing that costly repairs are covered can reduce stress.

• Budget Protection: Instead of unexpected expenses, you’ll pay a predictable service fee.

• Convenience: The warranty provider handles finding and dispatching service technicians.

Things to Watch Out For:

• Coverage Limits: Warranties don’t cover everything, and some items may have repair cost caps.

• Service Fees: Even with coverage, you may need to pay a fee for each repair visit.

• Pre-Existing Conditions: Many warranties won’t cover issues that existed before the policy started.

Is a Home Warranty Worth It?

If you’re buying an older home or don’t have a large emergency fund, a home warranty can be a smart choice. It adds a layer of financial protection and simplifies handling unexpected repairs.

The information in this article are of the opinion and experience of the author. Due diligence should always be done before investing in real estate.