Are Home Warranties Worth it?
Buying a home is a dream come true for many people. In fact, for most homeowners, it's the most significant single investment in their lifetime. But what happens when your A.C. breaks down, gutters leak, or the refrigerator malfunctions? Regardless of the amount you spend, repairs will be inevitable. Rather than depleting your savings, you can purchase a home warranty to cover common home repairs.
But are home warranties worth it? Although not required when buying or renting a home, home warranties are sometimes added to the closing price as add-ons by sellers to sweeten the deal or something needed by buyers to alleviate the cost of occasional home maintenance. Nordic Energy Service LLC provides warranties at the best rates across ten states in the U.S. If you're looking to alleviate future home maintenance costs, we're prepared to be your partner.
If you're still unsure whether you need a home warranty, read on to learn more about home warranties and why you should consider purchasing one.
What is a Home Warranty?
Buying a home is already a cost-intensive process that may have just sucked up all your savings. The idea of incurring an additional $2,000 to repair a broken appliance or repairing a leaking roof a few months later may not be the best thing you want to hear. But you can save on the additional cost if you purchase a home warranty.
Wondering what a home warranty is? Relax! A home warranty is a contract that offers discounted replacement and repair services for covered home appliances and systems. Sellers sometimes include home warranties in deals for older homes that may need repairs within a short period. Various contracts differ depending on the type of warranty you purchase for your home.
What is Covered in a Home Warranty Policy?
A home warranty policy complements home insurance that often covers significant home appliances and built-in systems. However, each policy differs depending on the company providing the service and the level of coverage you want. The more extensive a policy is, the more you will need to pay for coverage.
Homeownership insurance policies and the amount of coverage offered are negotiated between homeowners and the companies offering these policies. The policy outlines the coverage limits depending on the package amount, warranty guarantee length, and contractors' choice.
Nonetheless, most home warranties cover things such as:
- Major appliances, such as refrigerator, door opener, clothes washer, and dishwasher
- The roof
- HVAC, plumbing, and electrical
- Smoke detectors
Some policies can include some add-ons coverage for:
- Septic systems
- Spas
- Swimming pool
- Pre-existing damages
- Damage due to fault
How Does a Home Warranty Work?
Home warranty companies give customers an insurance policy contract for a monthly fee. Payment periods depend on the company policy and customer agreement. The contract consists of fixed service call fees and annual coverage limits for repair costs.
If your air conditioning unit stops working while you're still under the coverage limit, you'll call the home warranty company and file a claim. The company will contact a service provider to repair your A.C. or set a plan to replace it. The service provider can bill you a service fee of around $100.
What Don't Home Warranties Cover?
While a home warranty may cover the cost of repairing and replacing many household systems and appliances, it is essential to ask your warranty company about the extent of coverage they provide to avoid future inconveniences as warranty companies exclude items and services such as:
- Normal wear and tear
- Commercial-grade equipment and systems
- Detection and removal of mold, radon gas, and asbestos
- Pre-existing condition
- Rust, sediment, and corrosion issues
- Violation of building and zoning code
Do I Need a Home Warranty?
When considering whether you need a home warranty, consider more than the baseline cost. For example, do you have time and skills to do your home repairs? Do you want to cut down the cost of replacing your broken appliances? Do you want to increase your property's value? If your response is yes, you will need to purchase a home warranty when selling, buying, or renting a home.
Selling an older home in the current competitive real estate market is not an easy task. You'll need to create that added advantage to your property to entice potential buyers. And home warranty may be what you need to get a buyer.
Pros
A home warranty can give you peace of mind and protect you against costly unforeseen repair and replacement bills. It can provide you with confidence when buying an older home or a home with appliances and systems that may require repair within a short period.
Home warranty companies have networks with trusted service providers, so you're assured that professionals do your repairs.
Home warranties are relatively cheap compared to hiring repair companies by yourself.
You don't have to stock your house with repair tools or spend time learning DIY skills.
Should I Buy a Home Warranty?
Are home warranties worth it? Well, when buying a new home, you may not consider a home warranty important, mainly because manufacturers cover most new appliances and systems. But this manufacturer warranty can last for about three years, and then you're left to cater for the cost of any repair.
Is a home warranty worth it? After living in a home for a while, you stand a reasonable chance of needing an unforeseen major system repair or appliance replacement. This can cause significant financial and emotional stress. But if you have a home warranty, you're assured of an excellent investment to protect your family from such inconveniences.
When you buy a home with a warranty, the current warranty can cover you for a year or two. From there, you'll need to purchase your warranty or renew the policy used by the seller.
Contact Nordic Energy Services for Home Warranty Needs Today
Are home warranties worth it? Yes, you deserve to live a stress-free life in your newly bought or rented home. If you don't want to be caught unprepared by a malfunctioning refrigerator or the A.C. stopping in the middle of a heatwave, it's crucial to have a home warranty.
But, not all home warranty companies in the U.S. can offer the best policy at convenient rates for your home warranty. It would be best if you researched trusted home warranty companies before deciding on the policy that fits you. Nordic Energy Service is an experienced, trusted company that offers Cinch home warranties in 10 states countrywide. We can provide various policies to cover all your home appliances and systems.
