What is a home warranty?
A home warranty is an optional service contract that covers the cost to repair or replace appliances or systems in the home that break down through wear and tear. Once you purchase your plan, all you would have to do is pay a relatively small service fee for each claim.
Are home warranties worth it?
Yes! Home warranties are well worth the cost, especially when your budget is really tight. It really provides peace of mind.
The best home warranty providers give you access to a network of licensed professionals in your area. This reduces the stress on trying to find a qualified professional.
Should I get a home warranty plan?
Absolutely! If you want to avoid paying full price for expensive home repair and replacement costs.
It’s important as a first-time home buyer and rental property owners of older homes.
As the saying goes… “It’s not if, but when.”
How much does a one-year home warranty cost?
Home warranties can range between $25-$75 per month. Warranties with a $50 premium is considered to be affordable. Some companies offer build-your-own plans. Some increase prices over time.
Ensure to get all your questions answered before purchasing a home warranty and don’t forget to ask about early cancellation policies and fees.
Who pays for a home warranty?
Home buyers, sellers, realtors and rental property owners purchase home warranties to protect their homes. Home buyers purchase them sometime after closing. Sellers sometimes include a one-year home warranty as part of the sale. More and more, realtors are including a home warranty as a thank-you gift. Rental property owners can include the cost of the home warranty into a tenant’s monthly rent.
Summary
We received a one-year home warranty as a gift from our realtor. And low and behold, it hadn’t even been a full 3 months and we had our first plumbing disaster.
We found out we had an under slab leak which was not covered under the plan. To make it even worse, the plumbing business that was hired ended up creating many holes in our slab trying to pin point the lead. Want to hear what made it even worse, they didn’t even bother to lay concrete after the repair and to top it off, they weren’t masons :)… sigh!….
Within our first year, we had to also replace our water heater and repair our dishwasher, and that was covered.
Just remember to read the fine print and ask any questions so you are clear on what you are covered for.
