Confused about whether to buy a home warranty when you move or not? It varies from the individual perspective. For some buyers, home warranty is like a relaxation when it comes to budgeting for home expenses. And for others, it is just a waste of money. Buying a home warranty depends on the individual needs, finances, and the condition of home one is going to buy. We are here to help you out so that you can make the best decisions. The important insights we are going to share will be helpful in knowing that where home warranties are actually good and the type of homeowners who should and should not consider purchasing one.
What is a home warranty?
Many people are unaware of what home warranty actually is. Home Warranty is a single protection plan that homeowners purchase to cover the cost of repairs and replacing of appliances and systems in their homes. It is similar to the insurance for your home appliances but the difference it holds from homeowners insurance is that it covers only basic appliances and features while the other one covers the structure of the home and personal household belongings. Insurance compensation can be received in major events such as fire, flood, or burglary whereas home warranties cover general wear and tear or malfunction of an appliance.
Before you move, do the following
1. Have a thorough understanding of what home warranty actually covers
Many people are skeptical of whether to purchase a home warranty. It is significant to analyze what the home warranty does and does not cover. There are home warranties that cover the cost of repairing or replacing a number of home appliances and systems within the home. Various providers will allow the customers to add extra home features according to their choice like swimming pool. First, research about the providers before sticking to a home warranty plan.
2. Have open communication with the seller
Ask the seller if they have a warranty already. Do they have individual warranties for different appliances? Have an in-depth conversation with the sellers and ask the questions when purchasing a home and clear all your queries. There are sellers who even pay for all or part of the buyers home warranty during the first year.
Home warranties are good for:
1. Ones who are moving to an older home having old appliances
Home warranties work best for the people that are planning to move to an older home having the outdated appliances. With time, many things break down at home irrespective of the quality. Home warranty will avert the headaches, frustration, and expenses. Buy a home warranty when moving to an old house.
2. One who cannot handle risks
If you are one of those people who have a disturbed peace of mind when something in the house is broken, then a home warranty will work best. We strongly advise purchasing one when you move.
3. Ones who are not financially prepared
New appliances such as refrigerators, washing machines, dishwashers, air conditioners, and heaters are really expensive and can cost an arm and a leg. If you are not financially prepared to buy these items instantly, then it is a good idea to purchase a home warranty.
Home warranties are not good for:
1. Ones who are moving to a new home or one with the updated appliances
Purchasing a home warranty for a new home is just a waste of money as most new home features and systems work without the need for repairs or replacements for several years. The newer appliances are usually covered under manufacturer warranties that are usually good for up to many years.
2. Ones who are having individual manufacturer warranties on appliances
Check whether the manufacturer warranties are already there for certain appliances. Sometimes household appliances are already covered under an individual warranty, in that case, it is not recommended to purchase a home warranty. Home warranty will work if you are concerned about plumbing, electrical, and other household problems.
If you are about to buy a home warranty, be sure to check all the paperwork and important receipts. Planning to buy a new or old home? Sold By Anil has the expert real estate agents that will help you throughout your journey.