The whole process of buying a home can be exciting and intimidating. No doubt that the huge responsibility that will come with owning your own home can make you nervous, not to mention the anxiety of having that large debt to repay.
And when it comes to knowing all there is to know about a house you buy, the tour you take prior to purchasing a home, won’t really tell you everything. Like how well has the home been kept regarding the maintenance of appliances, electrical, plumbing, and structural? This is where buying a home warranty comes into consideration.
It is normal to worry about what can go wrong after you purchase a home. Like the refrigerator or stove going out a week after you move in, or the plumbing bursting in the basement the first winter you’re in the house. To protect yourself against these calamities, ask if about a home warranty when buying a home.
Do You Need A Home Warranty?
A home warranty isn’t required by the lender like homeowner’s insurance is. A home warranty is a service contract that will pay to repair or replace items such as appliances, HVAC, and plumbing. A home warranty offers you peace of mind, up to a certain limit. Every home warranty provider will have some leeway within every policy that allows them to deny a claim. And that is what you want to review before buying into one or renew one that comes with the house you buy.
Yes, often a seller will include a home warranty plan with the sale of the house at no additional charge to the buyer. If a buyer’s home warranty coverage is offered by the seller at no additional charge, by all means, you should accept it. But realize that even though you won’t be paying the monthly premiums, or it isn’t added to the purchase price, you will be responsible for a service fee, usually in the range of $50 to $75 per each repair or replacement.
What About New Built Construction?
When buying a newly built construction home, new home buyers’ warranty will usually be covered by the builder’s warranty as required by each state, or the manufacturer’s warranty, which is usually one year from the date of purchase. You shouldn’t be concerned about a home warranty plan being offered unless you’re buying a pre-existing home with older, used appliances.
Can You Buy A Home Warranty Yourself?
Yes, home warranty plans are available to all homeowners, not just to sellers. First, confirm what may be covered already, such as the HVAC or water heater. If the current owner just had these replaced, the warranty may switch over to the new owner if it is still within the warranty period.
You should also consider if it is something that you are going to get your money’s worth from it. As we mentioned before, there are limitations and many home warranty companies have leeway within their plans that allow them to deny claims for repairs and replacements. There things that will not be covered with a home warranty plan as well, like non-mechanical items like the structure of your home or the windows. And depending on how old the items in your home are, the home warranty plan may not cover them.
And if you plan to buy new appliances or other major fixtures for your home, these are the products that your credit card may offer coverage extended beyond the manufacturers. For some homeowners, they put the money aside that would pay for a home warranty as an emergency fund to pay for those unexpected repairs and replacements.
If you still have concerns and questions whether you need a home warranty, give us a call at Liberty Home Guard today. We have a team of experts in this field and will be glad to tell you about the options available and what they will cost.