Does A Home Warranty Mean We Don't Need A Home Inspection?
Consumers love their warranties. Computer acting up? Good thing you bought that extended protection plan. Car smoking like the Cheech and Chong van? That's what the bumper to bumper warranty is for.
So when buyers start searching for homes, that one year home warranty is total peace of mind, right? If we have the "platinum plan" service agreement isn't a home inspection wasted money?
Before you cancel that professional home inspection let's examine some limitations to most warranty plans.
1) Pre-existing damage is usually not covered-- Your dream home had nightmare renters and now the ac is broke. Most warranty companies insist that the equipment WAS functioning when you closed on the property.
2) Most plans exclude big ticket items-- Need a new roof? Better hope that piggy bank is full! Most popular plans do not cover roofing or septic (unless optional coverage is selected).
3) Foundation issues are on the owner-- the Grand Canyon belongs in Arizona, not in your foundation. Again, such issues typically are excluded by warranty companies.
4) Warranty companies do not inspect your home-- Warranty companies are reactive in nature. In other words they come out when something breaks. Whereas a professional home inspector may uncover defects that keep you from buying the home in the first place.
Home warranties certainly have their place. In fact, I recommend a home warranty to all of my buyers. Just remember the warranty is for future peace of mind, not to clean up past defects.
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