Smart Investments – Home Warranty

Smart Investments – Home Warranty

These days we all need a home warranty if we want to make smart homeowner investments. A home warranty can be a huge benefit when you are selling your home. The warranty will give potential buyers a peace of mind since they can have covered systems on the policy repaired for less than $100.

Whether you are buying a new home or selling your current home, a home warranty is valuable protection that is a smart investment. Many new homebuyers choose to buy home warranties, which cost $400 on average for the basic home warranty because they know this coverage will help them pay for costly repairs during that first year of homeownership. It helps make settling down into a new home even better. Some real estate agents have even been known to buy a home warranty for the buyer as a gift as a thank you for their business.

What Home Warranties Usually Cover

• Kitchen appliances such as your range or oven, dishwasher and built-in microwave
• Garbage disposals
• Plumbing including a whirlpool tub
• Sump pump
• Water heater
• Ceiling fans and exhaust fans
• Heating and electrical system components

You can get additional warranty coverage that will cover larger appliance items such as refrigerators, air conditioners, garage door systems, waters and dryers. There is also optional coverage for expensive items like swimming pools and septic systems.

New Construction Home Warranty

Newly built homes typically come with a one-year warranty on appliances and systems and a 10-year warranty on structural elements paid for by the builder. If something goes wrong, you will need to contact the warranty company and they will send a repair person of their choice. You will pay a service fee, generally about $50 or $75, to have the appliance or system checked and fixed.

Should You Buy a Home Warranty?

This is something that should be well thought out. It is important to understand what is covered, the limitations of your policy and any fees you will be required to pay. Just like any legal document, you should read the terms and conditions of the warranty before deciding whether buying it is a good investment.