Home warranties are useful ways to insure your home's systems in the event of a malfunction or breakdown. If you're a homeowner, make it a point to learn more about these warranties, as they can save you thousands of dollars in repairs.
What Home Warranties Cover
Different home warranties cover different degrees of problems. A company that offers home warranties may offer several home warranty plans, which cover different parts of your home and its systems. Determine what coverage is important to you, and shop around for home warranties that offer that coverage. Some home warranties cover structural elements, while others don't, so make sure you know what you're getting before paying for a plan.
Shop Around
Don't be afraid to evaluate dozens of home warranty plans. Home warranties can be big investments, so you should put in the effort to find a company that offers home warranty plans you're likely to use. Look for a company that offers easy servicing options and an easy claim system. Home warranties are useless if you can't get the company to pay up, so look for positive feedback and avoid home warranties with companies that have many negative comments.
New Construction and Home Warranties
If you're building a new home, look for a builder that offers home warranties on its construction. Many builders offer 2-10 home warranties, which cover two years for systems and 10 years for structural issues. If you don't get at least 10 years of structural coverage, be prepared to walk away and find another builder who offers better home warranties.
A home warranty is especially important in new construction, as it protects you from builder errors or any excessive shifting or settling in the years following the home's construction. If you have new construction and the builder offers home warranties, you probably won't need to look at supplemental home warranty plans through other providers.
Are Home Warranties a Worthwhile Investment?
Buying a home is a big investment. Some people put all of their money into buying the home, and then find that they have no money left over for all the potential repairs that come along with home ownership. If you would have trouble paying for expensive home repairs, it might be worthwhile for you to consider home warranties. It's much easier to budget for a monthly fee than an unexpected thousand-dollar repair.
Home warranties are also useful if you hate coordinating repairs. Most home warranty plans include coverage by certified repair technicians, and some home warranties include direct coordination of repair personnel. If you don't mind paying for convenience, this is a useful aspect of home warranties.
 | Buying your first home can feel intimidating. However, by understanding the process, you can have a great experience. |
You've gotten your financing in order, and you have an idea of what you want. Now all you need is to find your dream home and you'll be set to move. So when is the best time of the year for buying a first home? |
Ask yourself some important questions so that you can make the smartest financial move when you want to buy a home. |
Title insurance can give you piece of mind when purchasing a home or piece of property. But what is title insurance, and why is it so important? |
Whether you're buying or selling a home, your team of expert advisors should include a real estate lawyer as well as a REALTOR®. Your REALTOR® can help you find the right house or the right buyer and negotiate a price and closing date that are right for you. |
