What are Home Warranties?
Home warranties are a type of service contract that provide repair or replacement coverage for major systems and appliances in a home. They can be purchased by either the seller or the buyer, and typically last for one year. The question that often arises is whether it is worth buying a home warranty or not.
One benefit of having a home warranty is the peace of mind it can offer. If a covered item breaks down, the warranty company will send a qualified technician to diagnose the problem and either repair or replace the item. This can save homeowners hundreds or even thousands of dollars in repair costs.
The items covered by a home warranty can vary, but typically include central air conditioning systems, central heating systems, kitchen appliances, clothes washer and dryer, plumbing system, electrical system, and roof leaks. Many of these items are included in the standard plan of the warranty.
If you are selling your home, offering a home warranty can be a selling point for potential buyers. If your home is older, offering a home warranty can offer peace of mind to buyers and help mitigate issues that may come up in the inspection with concerns about mechanicals or appliances being near the end of their life, for example. You will also be covered by the warranty during the time your home is listed, which can be a benefit for the seller.
Buyers also have the option of purchasing a home warranty. This can be especially useful for those who are purchasing an older home, as it can provide coverage for major systems and appliances that may be near the end of their life. Buyers typically have 90 days after closing to add a warranty.
It is important to note that not all home warranties are created equal, and it is important to research the options available and read the fine print before purchasing. Some home warranties may have limits on the amount of coverage provided, as well as exclusions for certain items or types of damage.
In conclusion, whether or not to buy a home warranty depends on individual circumstances and preferences. While a home warranty can provide peace of mind and potentially save homeowners money on repairs, it is important to carefully consider the options available and weigh the costs and benefits before making a decision.