Many sellers will offer a home warranty as an added incentive to a buyer, but are they really worth the money? If you’re a first time home buyer then a home warranty will offer peace of mind as you move from home “borrower” to home owner. When you rent and something goes wrong, you’re used to calling the landlord to fix it. Once you own a home, YOU are that landlord and the maintenance falls on you. A home warranty can help you get used to that fact.
Here are other pros and cons of having one:
Provides Peace of Mind
A new home can bring a lot of care and maintenance. Air conditioning and heating systems, electrical fittings, appliances like dishwasher, microwave, etc., work well for a particular time period then suddenly will go bad. An advantage of having a home warranty is that you don’t have to worry about fixing them up. Whether they need repairing or replacement, one call and your problem is usually solved.
Costly Repairs Turn Cheaper
Some repair – like fixing up an air conditioner, can be extremely expensive if there is a major problem. A home warranty can save you a lot of money in repair as you’re usually only paying the expense of the service fee charged by the service provider.
Easy Fix for Difficult Repairs
You can’t always repair your systems and appliances all by yourself. Some problems call for an expert. This plan helps you by providing the right experts to tackle a specific problem, which would otherwise be too much for you to fix on your own.
Service on Call
One telephone number solves all your home-related problems. You don’t have to remember contact numbers of several service providers pertaining to each kind of problem that may arise at your home. One call and you are done! It will make your life easy and simpler.
Get It from the Seller
When buying a new house, you can always ask for a home warranty plan from the seller as a part of the contract. This plan typically provides coverage for one year, after which you can continue or discontinue it, depending on your need.
Short Coverage Period
This can be considered a positive point because you can decide to discontinue the plan at the end of your contract. If you regularly maintain your appliances and use them the way they’re supposed to be used, your appliances will require less of repairing. So, after one year, if you feel you don’t have a need to renew, you can choose to discontinue it.
The annual premium charged for a warranty plan is usually around $500-600 which might be expensive for some pockets. Many home warranty companies let you break that down into 3 payments and some even offer monthly installments. In addition to the annual charge, each time you call for repair, you’re going to be expected to pay a “deductible” which is usually $65 and up per visit.
Repair Over Replacement
Even though an appliance is breaking often, the service providers tend to repair it rather than replacing it because it will cost them more. Due to this, you may have to face the same problem again and again, without having much control over it as you are tied down by the plan.
Time Required for Providing Service
Companies providing plans have their own set of service providers. If you call your own service provider and get the problem solved, you will not be reimbursed for it. This means every time you face a problem, you need to wait for their service providers to solve the issue which can sometimes take several days. Are you willing to wait 5-7 days to have you a/c fixed when it’s 100+ outside?
A warranty plan does not provide service for all the issues that can happen in your house. Each plan has its own set of coverage limits, and anything beyond that is usually not covered. It is important to read the policy carefully to check what is covered and what is not.