Unless you’ve purchased a brand-new home that features warranties on the newly installed systems and appliances, there is not any guarantee you’re covered for repair or replacement if something breaks down in your new place. The best way for buyers of pre-owned homes to safeguard themselves against the potential for costly repairs would be to consider getting a home warranty.
6 Items Buyers Ought To Know When it comes to Home Warranties
A couple of things you must know about home warranties:
1. They’re NOT homeowner’s insurance.
Homeowner’s insurance generally protects the structure of your home along with your possessions within your home, while warranties cover appliances and systems. As an example, a few things covered by a warranty may be repairs to your furnace, hot water heater or electrical system. Homeowner’s insurance, on the flip side, typically covers repairs of damage to the home from theft, fire as well as some weather-related incidents; additionally, it covers injuries that are a result of these types of incidents.
2. They’re not all-inclusive.
Although warranties usually include HVAC, plumbing and electrical, they just do not include all that you might personally consider a “system” or “appliance.” This will depend on the specific policy. For instance, some general policies cover septic systems; others don’t. Talk with your warranty issuer to ensure you’re obtaining the coverage you would like and need.
3. They cover the unknown.
Any existing problems with your systems and appliances should’ve been found while having home inspection and addressed before you took ownership of the home, in the event you negotiated repairs and replacements. Warranty companies consider problems identified within a home inspection as “known conditions,” and quite often don’t cover them. Home warranties generally cover “unknown conditions,” problems that wouldn’t have been revealed by having a normal home inspection or ones that develop after you move in.
4. They won’t break the bank.
Generally, home warranties are priced between about $350 to $500 annually. Often, it’s your responsibility to obtain a policy. Other times, though, sellers could include a policy as added incentive during negotiation of the home sale. Some real estate agents give home buyers a home warranty as a gift as soon as the home purchase is settled.
5. They have fine print.
There are lots of companies that offer home warranties. Ask us for assistance with where to turn. And make certain to read the complete policy to make sure exactly what’s covered, to what extent and the steps you’ll take should you ever have to file a claim.
6. They’re ideal for first-timers.
Home warranties are generally especially helpful in providing assurance for first-time home buyers that happen to be not familiar with home maintenance and repairs – not to mention buyers of high-mileage homes – especially throughout the first year.
For assistance with home warranties and all of the features of the home buying process, Nick, Cindy & Nicholas Davis with RE/MAX Premier Group are prepared to help. We are always a just a click here away or call to 813-300-7116