Home Warranty Guide: Is It Worth Getting When Moving?
When moving, should you invest in a home warranty? For numerous buyers, home warranties provide assurance in budgeting for home costs. Others view them as an unnecessary expense. Your need for a home warranty hinges on your unique requirements, financial situation, and new home condition.
Luckily, we’re here to assist. To simplify your choice, we’ve incorporated details on the benefits (and limitations) of home warranties and the types of homeowners who should and shouldn’t contemplate getting one.
What is a home warranty?
So, what exactly constitutes a home warranty? It’s a singular protection plan homeowners can acquire to manage the expenses of repairs and replacements for home appliances and systems. Picture it as safeguarding your home appliances. Unlike homeowners insurance, home warranties solely encompass fundamental devices and features, while insurance contains significant items like your home’s structure and personal belongings. Generally, insurance necessitates a substantial event like a fire, flood, or theft to qualify for compensation, whereas home warranties might only require routine wear and tear or appliance malfunctions. For information about home warranty costs, refer here.
What does a home warranty cover?
Almost every homeowner will encounter issues with appliances and home features over time. After all, who has yet to experience a dishwasher or refrigerator breakdown at least once? This is where home warranties prove invaluable. Having one means that when an appliance breaks or gets damaged, a service professional will visit your home to repair or replace it. As you’ve already acquired a home warranty, the only probable expense is the minor service fee. Conversely, those without a home warranty must personally cover the cost of replacements or repairs. Home warranties generally include coverage for:
Washing machines and dryers
Ovens and stovetops
Refrigerators and freezers
What to do before you move
If you’re considering buying a home warranty, begin by familiarizing yourself with its coverage. Most home warranties encompass the expenses associated with repairing or replacing various home appliances and systems, including those mentioned earlier. In their warranty plans, certain providers might offer additional features like a swimming pool. Before finalizing a plan, thoroughly research diverse providers and their offerings.
Inquire about existing home warranties from the seller. Check if they possess a home warranty or individual manufacturer warranties for appliances. Pose these questions when buying a home. Sellers might even propose covering all or part of the buyer’s home warranty costs for the initial year.
If you’re under contract and ready to buy a home, ensure that the inspector conducting your official home inspection thoroughly examines the appliances and systems. Your inspector should furnish you with a comprehensive evaluation of their condition. This assessment will aid in determining whether a home warranty is necessary. For instance, if an appliance is near the end of its lifespan, it’s advisable to consider obtaining a home warranty and request the seller to address repairs before the closing.
Home warranties are ideal for:
Individuals relocating to an older home or one furnished with outdated appliances find home warranties especially beneficial. In the case of older homes, it’s only a matter of time until something malfunctions (and rest assured, it will!). Spare yourself from the associated headaches, frustration, and costs by purchasing a home warranty when making your move.
If the notion of a malfunctioning fridge troubles your sleep, you belong to the risk-averse group. We highly recommend acquiring one during your move if you’re seeking the peace of mind.
Naturally, new appliances are a substantial investment. Refrigerators, washing machines, dishwashers, and other high-value appliances can cost several thousand dollars. Unless you are financially equipped to instantly replace these items, considering a home warranty purchase is a prudent choice.
Home warranties are not ideal for:
Purchasing a home warranty is likely unnecessary if you’re relocating to a new home or one equipped with modern appliances. For new construction homes, most features and systems should function without requiring repairs or replacements for a significant period. Moreover, manufacturer warranties should still protect these updated appliances, typically extending for several years.
Check if the seller possesses individual manufacturer warranties for specific appliances. Suppose individual securities already safeguard these items. In that case, a comprehensive property warranty policy might only be necessary if concerns arise regarding significant components like plumbing or electrical systems experiencing breakdowns.
What to do with your warranty information
If the seller provides you with their manufacturer property protection details, ensure that you organize all paperwork and receipts in a readily accessible file folder.