What is a Home Warranty?

Real Estate Agent

What is a Home Warranty?

Unlike home insurance, a home warranty is not a policy; instead, it is a contract between the homeowner and the firm providing the home warranty. Typically, a home warranty includes appliances and home systems such as electrical, plumbing, water, and heating. There are additional options that can be customized to cover a client's requirements. Upon failure of what the home warranty contract covers, you get to place a claim. The standard home warranty contracts are on an annual basis.

Do I Need a Home Warranty?

Are you having new appliances installed? If yes, you most likely won't need a home warranty to cover these right away. New appliances normally come with warranties that cover repairs and replacements. For this reason, a home warranty contract isn't essential.

If your home appliances no longer have an active warranty from the manufacturer, you may consider the peace of mind that comes with the home warranty. If you're buying a new home and the appliances are includes, you may be concerned about the condition and need for future repairs. Unexpected repair or replacement costs can create a hardship. This is where you will appreciate a home warranty. In most cases, all you have to do is call the home warranty company. They send the repair and maintenance service provider to you.

Who pays for the warranty?

When purchasing a home, the first year home warranty is often paid by the seller. This is sometimes the result of collective bargaining with the home seller. In other instances, you pay for the warranty. Before taking a contract, it is advisable to understand the terms and conditions as well as what the contract covers. If possible, shop around and comapre companies. This will ensure that you do not end up taking a costly contract and have trouble managing the premiums.

What are the steps in securing a home warranty?

After shopping around and choosing the home warranty company that suits your needs, the next step is to make contact. The warranty providers will suggest terms and conditions. Once you agree to the terms of the warranty, a premium will be issued for your policy. If the suggested contract doesn't met your needs, you should be able to customize it to include additional features or remove features that you feel are unnecessary.

What are the benefits of having a home warranty?

Financial freedom – repair and maintenance cost can be overwhelming. Unfortunately, they occur when you least expect them and at times when money is tight. This may prove to be uncomfortable when it come to things like the temperature control in your home if the heating system fails. Knowing you have a home warranty in place provides a financial cushion for unforseen breakdowns.

Peace of mind – purchasing a home warranty can create peace of mind. Not only do you have less to worry about financially, you are eliminating concerns about repair and maintenance scheduling. The warranty company makes sure you get a trustworthy, experienced, and affordable service provider when something goes wrong.

Knowing the ins and outs of what's important when buying a home can make all the difference. You don't have to walk through things alone. Get in touch with Ashley Kimble Slaughter at 225-235-9379.

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Comments (2)

Gary Coles (International Referrals)
Venture Realty International - Las Vegas, NV
Latin America Real Estate

Ashley Kimble Slaughter Great post -- many people are not familiar with home warranties and I feel that they are extremely important.

Oct 06, 2015 01:06 PM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Ashley - Thanks for sharing this information about home warranties. Hopefully this will help consumers better understand them.

Oct 06, 2015 03:51 PM