Purchasing a home is probably the largest investment you’ll ever make. For this reason, you want to insure your investment any way you can. Home warranty coverage can provide home buyers with the security of knowing they’ll have some protection against unforeseen calamities. Learn more about home warranty coverage and why it’s so important.
What is Home Warranty Coverage?
Home warranty insurance provides coverage for replacement or repair of important items inside of your home. It will pay for either the replacement or repair when items are damaged or broken. Appliances, plumbing, electrical and heating are a few of the main items covered with a home warranty. Although the cost may vary, home warranty coverage typically cost around $400 and up per year.
At the time of service, the customer pays a small service fee and the home warranty coverage pays the rest up to the cap. According to AARP, home warranties offer many benefits. Main benefits of home warranty coverage are:
- After the service fee, everything is covered by the home warranty.
- The home warranty company takes care of calling a service technician.
- There are no worries about large, unexpected and unaffordable repair bills.
Isn’t Homeowners Insurance Enough?
Many homeowners confuse homeowner’s insurance coverage with home warranty coverage and feel if they have one they don’t need the other. These two are very different policies. Homeowner’s insurance, which is required when there is a home mortgage loan, provides coverage against damage and perils caused by natural disasters like fire, flood, high winds, etc.
Home warranty coverage provides coverage when things break down or wear out in the home. Whether you fancy yourself a handyman or are mechanically challenged, home warranty coverage can give you the peace of mind of knowing your repairs will be covered.
Why Home Warranty Coverage is Essential
Home warranty coverage is essential because, simply put, things do break down, and repairs can often take a large chunk out of our paychecks or savings. Having home warranty ensures that when something in your home breaks down you will not be stuck with a large bill. When people have home warranty coverage, they can sleep nights without the worry that they’ll wake to some large repair bill for some old appliance or system.
Home warranty coverage is great when you’re buying a home. You’ve already made one large purchase and shouldn’t have to worry about sudden repair bills. Unfortunately, things often break down within a couple months of purchasing a home, and those things are often not covered through the seller. Home warranty coverage can be the ideal option in this situation.
U.S. News & World Report states that home warranty coverage can be just as important for sellers as it is for buyers, particularly when they have home listings sitting idly for many months. Even when a home is just sitting, things can break. A home warranty can get these items fixed quickly and without a large repair bill.
Whether buying or selling your home, it’s highly likely that most of your money is tied u in the home. Barring someone suddenly winning the lottery, that means most of us don’t have money to spare for large repair bills when they pop up out of nowhere. Home warranty coverage can be a win-win for all.