The American Dream is to have a job, a family, and a house in the suburbs. With millions of homes sold every year, it appears that many people are finding that dream to become a reality.
But what happens when something breaks at home? What happens when repairs are necessary, and you’re not able to do them yourself?
Home warranties often featured as an added bonus when you buy the house, step in to save the day. If something goes wrong with the house that would require a professional to come in and repair it, you can tap into the power of your home warranty to help.
You pay a small service charge, and the rest is covered by the warranty plan that you have chosen. Understanding your warranty is the key to knowing how it works.
Home Warranty with House Sale
Browsing the homes that are for sale, you see that many of them are advertised as coming with a free home warranty. On the surface it looks great. Buyers are already looking, and this is an added benefit to their house hunting. The issue with these types of warranties, however, is that they’re often little more than a marketing stunt.
A home warranty will come in varying levels of service. Some are lower cost, but they don’t cover as many issues that could pop up with the house (for instance, electrical issues might be covered, but electrical issues with appliances might not be covered).
Often, when a warranty is advertised as a bonus to buying a house, the warranty is the lowest level of service. In other words, they’re really cheap to buy, but they won’t cover much that happens to break down.
To get the most out of this service, understand your home’s needs, and find a warranty company that is trusted.
What to Look for in a Home Warranty
A home warranty can add value and end up saving nearly all homeowner’s money. But you need to pay attention to these three points:
Areas of Protection – Understanding the age of your home will help you know what you need to have protected. Newer homes will be served with a more basic plan that doesn’t cover things like renovations, add-ons, and updates. Older homes naturally have more issues, and thus need a broader protection. Similar to an insurance policy, the more areas that are protected, the higher the premiums.
Deductibles, or Service Fees – Also similar to an insurance policy, a home warranty has a fee for each call. A lower fee per service call will mean it’s easier for you to use the warranty, whereas a higher fee can make it so that you don’t end up saving money. Lower fees can mean higher premiums.
Company Reputation – Many people shop based on cost alone. But when it comes to a home warranty, you don’t want the cheapest company that isn’t going to be around a year from now! You want one that is reputable and highly ranked. Old Republic is well known in the biz, and they have great reviews online.
Is a Home Warranty for Everyone?
If you’re handy around the house and you can fix just about anything, then you might not be a great fit for a home warranty. But many people have honed and specialized their skills; often that doesn’t include fixing their house.
If you want to save money on repairs, and if you want to avoid large costly repair bills that could potentially throw your entire budget out of whack, then investing in a home warranty to protect your bank account and keep your house fully functioning is a smart choice.
