What is a Home Warranty and Should You Get One?
Whether buying or selling a home, the words “home warranty” often get thrown into the mix as an additional offer a seller can bring to the table to entice buyers, or as something a buyer may consider voluntarily purchasing for peace of mind going into a new purchase. But what exactly is a home warranty and is it right for you?
What is a home warranty?
A home warranty is a product you can buy to protect yourself from major expenses related to repairs and replacements of:
- Electrical systems
- Plumbing systems
- HVAC systems
- Appliances like washers and dryers, refrigerator, oven, range, garbage disposal, and others
While home warranties offer protection in these areas, it’s important to note that, though plans vary significantly, they also come with their share of coverage limitations. For example, if an appliance was not properly maintained, it may not be covered by the warranty. Given the wide variation among warranty products, it’s always important to understand what you’re purchasing and how you will be protected.
Pros and cons of home warranties
One of the biggest benefits many home owners find in a home warranty plan is peace of mind. After making a purchase as large as a home purchase, it’s comforting to know that if the HVAC system goes haywire in the months immediately following the sale, they won’t be responsible for shelling out yet even more money. Additionally, the home warranty company will handle all of the logistics of finding a person to help with the repair or take care of the replacement
Conversely, many home owners find the limitations of the plans not worth the money and possible frustration resulting from a claim not going their way. While the cost of a home warranty is generally a few hundred dollars, which is small change compared to the cost of a major repair, some people find they are more comfortable saving that money in their own emergency fund.
Home warranty products, like any contract, should be evaluated across of host of variables including the age of your home and appliances, your comfort level with risk, and willingness to take on any repairs or replacement yourself.
As a seller, it’s also important to consider if including a warranty in the terms of the sale make sense for your property and place in the market.
Together we’ll walk through the best options for you. Get in touch today if you have any questions about buying or selling a home in South Florida.
