Home warranties are a really good idea if youre a first-time homeowner with no experience in taking care of a home. That’s why some realtors market new houses with home warranties as a selling point to entice buyers. Home repairs can be so expensive that some people refer to houses as money pits. Homeowners insurance wont cover bills to repair major systems or appliances, but a home warranty protection plan can help with repairs if your refrigerator stops running or your air conditioning quits working during a blistering heat wave. So a home warranty may be a very good idea if youre a first-time homeowner with no experience in taking care of a home.
Types of Home Warranties
For homeowners that arent putting their home on the market or who bought their home more than 90 days before they apply for the warranty. Some of these warranties take 30 days before they go into effect.
Seller Home Warranty
Sellers buy these while their properties are still listed. They go into effect as soon as theyre purchased and cover the property throughout the listing. Seller warranties can be transferred to the buyer during the closing.
Buyer Conversion Warranty
This policy is transferred to a buyer and goes into effect immediately at closing.
Buyer Direct Warranty
A protection plan that a buyer or their agent purchases and becomes effective at closing. Buyers have up to 90 days after closing to buy these warranties.
Renewal Warranty Contract
A renewed home warranty contract. Most home warranties are annual contracts that can be renewed annually.
Now The Unit Breaks Down
Even though I do a fair amount of home repair, we bought a home maintenance policy because our house was getting older and we thought we might start needing repairs. Our policy covered plumbing and appliances. It was an ala carte type warranties were you pick which systems you want covered. It cost less than $20/mo. so it wasn’t a big deal. Two years later we dropped it without ever having used it. How about two years after that our air handler and heat pump go out. I had to foot the entire $4,000.00 bill to have it replaced. I don’t know how much the warranty would have paid but anything would have been better than nothing.
First Time Home Buyers and Home Warranties
When we bought our first home and we started having plumbing problems, the washing machine quit working, and our air conditioning started to break down I learned how expensive home repairs could be. Thank God that didnt all happen at the same time. Unfortunately, home warranties were only for the rich and famous back then. But those break downs inspired me to learn how to do my own home repairs (See my YouTube video How to Replace A Refrigerator Ice Maker Motor below). But I also learned my home repair limits. With some repairs it may be better to call in a professional to do the work. That can get expensive and thats another reason some people think home warranties are a good idea.
Who Pays Insurance Policy or Home Warranty
Most home insurance policies wont pay for plumbing or heating and air conditioning repair or replacement. Thats why having a home warranty might be a good idea. But just like your insurance policy, youll want to read the fine print before you buy a home warranty because not all home warranties are created equal. Some are better than others. If youre shopping for a home warrant, you need to understand exactly what a prospective home warranty covers and what it doesnt cover. You also need a good idea of how much of the repair cost the warranty pays. Reputable home warranty companies with good home warranties are why some people think home warranties are a good idea.
Peace of Mind
So why do some people think home warranties are a good idea? Well, they may not necessarily be a good idea in every situation. A homeowners ability to make repairs, their finances, and peace of mind are just some of the factors that go into deciding whether a home protection plan is a good idea. Every family has to weigh their unique needs against the pros and cons of home warranties to decide whether a home warranty is a good idea or not. For many, the peace of mind that a home warranty gives makes it well worth it.