A home warranty typically covers most major components of a home such as the HVAC system, hot water heaters, electrical, some appliances, and plumbing. Each home warranty is different and typically last about one year. This is something that homeowners can purchase for buyers as an incentive to purchase the home and give them peace of mind that if anything should go wrong within the first year, it’s probably covered. But are they really worth it? Here’s what you need to know about a home warranty.
A home warranty will cover the repair or replacement of many of the working parts of the house. So what should you know about it?
Are Home Warranties Worth it?
Find the right company.
Not all home warranty providers are the best option and there are several options to choose from. The important thing is that they will be effective and will service whenever called upon. The warranty company will contract the work to local professionals based on the description of the problem. Check with reviews so you choose the right company.
Understand what is covered.
Most home warranties will specify what they cover but if you’re concerned about a certain component, double-check that the warranty covers that expense. Most homebuyers will need a home inspection done to determine the efficiency of all of the parts of the home and homeowners can use this as a guide to select which items can be covered in the home warranty system.
Understand the cost.
Most home warranties cost between $400 and $500 but there’s usually a deductible to be paid by the buyer if something is to be repaired.
Understand how it works.
Most buyers will need to set up their own account with the home warranty system and homeowners must call to claim any warranty work. If this is something that homeowner will try to claim, it’s imperative not to try to fix it by themselves. Warranty companies have very specific contracts and if you choose someone else that’s not contracted with them, the repairs may not be covered.
This is a great option for both buyers and sellers. Even if the seller doesn’t offer a home warranty, buyers can choose this type of option once they move as a piece of mind. If something should go wrong, they have the means to correct it and fix it without having to repair or replace at their expense. So, are they worth it? In one word… YES!
Contact me for references and information on home warranty companies in the Pacific Northwest.