First time property owners should understand that a home warranty is a valuable protection as far as your finances and peace of mind go. Such homeowners can benefit from home warranty simply by weighing their options from the different warranty companies in town.
If you are new in the world of property ownership, home warranty can offer you that much needed cushion against repair costs. If you have a proactive real estate agent, you do not have to worry about the hefty paper work, as he will handle it professionally on your behalf.
A home with a warranty is very marketable and you will not have to worry about attracting new tenants or buyers. In the event that you want to rent out or sell your property, just mention to the potential tenants or buyers that your property has home warranty coverage.
The Difference between home warranty and insurance
Newly done properties automatically have not less than one year of warranty on systems and appliances. More so, structural elements receive a warranty of up to a decade. This warranty is only limited to whatever the builder has financed as far as structural equipment goes, but it does not cover items that are not listed on the service contract. In addition, this warranty does not extend to an already established property.
In the event of an accident or disaster, a property owner should contact the warranty company and have them send a technician to repair the damages. This service comes at a fee of not less than $50.
Homeowners insurance covers the physical structure as well as your personal items against theft, floods, damage or fire. However, homeowners insurance has conditions. For instance, your claim will not be eligible if your heat pump explodes or your washer breaks down.
The coverage that comes with home warranty
While home warranty can prove to be tedious and frustrating to some homeowners, it does come with a number of benefits. For starters, as far as unbudgeted repair bills go, you will be on the safe side.
However, you cannot hire just anyone to do it. Your warranty company will hire a professional who will fix the damages. Note that the warranty does not necessarily translate to new fixtures in case of damage. Rarely do home warranties replace a worn out item that was poorly maintained or had other failures.
While warranties range from one company to another, property owners should understand that there are standard rules that they apply and that not every appliance is covered.
Here are some of the appliances that are covered:
• Sump pump
• Exhaust and ceiling fans
• Plumbing such as a whirlpool tub
• Garbage disposals
• Water heater
• Components such as heating and electrical components
• Kitchen appliances that include dishwasher, built-in microwave or oven
It would be wise to go for a competent warranty that will cover as many items as possible. If it covers items such as the dryer, refrigerator, air conditioning system and other common appliances in a home, that is as good as a home warranty gets. Most importantly, read the terms and conditions keenly. Many property owners have had to dig deeper in their pockets simply because they failed to read and comprehend the fine print.
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