Home warranties cover the cost of a house’s major systems and appliances, they are generally advised to people who venture forth and buy older furnished houses. It is a residential service that covers the cost of maintaining certain household appliances for a fixed period. The homeowner draws a contract with the warranty company which states that they would cover the costs of basic breakdowns like a washing machine trouble or a short circuit in the house’s wiring. However, a home warranty doesn’t cover voluntary damages like misuse or neglect, pest problems, and improper installation. A home warranty plan also covers pre-existing issues in case they are not detected during an inspection.
Pros of home warranty
Assurance- The biggest pro of having a home warranty plan is the assurance that if something in your home doesn’t work right or breaks, a professional will immediately come to your rescue to repair it or even replace the product if needed.
God for budget plans– Another major reason to get home warranty plans is that they cut the unanticipated costs. The owner knows the cost of their warranty and thus can estimate the expenditure after a repair or replacement. It is of great help If one wants to set a budget carefully and set aside a certain amount of money without the risk of over-expenditure then the wisest thing is to get home warranty plans.
They are tailored according to your needs– A home warranty plan costs $500-$800 on an average per year according to the size of the house which is pretty affordable. The more systems the owner adds under the plan to get them covered, the more the costs rise. For example, if someone needs to add their jacuzzi or voice-controlled lights under their home warranty plan, the costs get higher than the basics.
Convenience– Home warranties actually make things go down in a much smoother way when something in a household breaks which is covered by the warranty. The owner does not have to go hunt down technicians with the best prices, the warranty company sends over the best possible technicians to the rescue.
Easy transferability–Just in case the current homeowner decides to sell the house while the home warranty plan is still in use, they can easily transfer it to the new homeowners with a nominal transfer fee which would not hurt anyone’s pockets.
Powerful marketing tool– when a buyer looks forward to buying a house, it reassures them if it comes with a home warranty plan. This lets the buyer know that they are safe from unprecedented costs in the future when something needs repair at their home.
Prevents post-sale feuds– A homeowner turns to the seller in case anything in the house turns out to be damaged or requires replacement immediately after they buy the house. A home warranty plan prevents the buyer and seller from getting into a feud by providing a coverup for the services needed.
There are a handful of strong pros to why a homeowner should get home warranty plans, but it varies greatly from person to person on which pro outweighs the other. Different homes have different needs and home warranty plans are very versatile. However, there are quite a few cons to consider before buying a home warranty plan.
Cons of home warranty
Does not cover all types of properties– Home warranty plans don’t cover homes that don’t have a fixed and permanent foundation, for example, home on wheels or mobile homes. It also doesn’t cover spaces that aren’t directly owned by the warranty owner for example dorms, timeshares, rented houses or apartments, etc.
Not being able to choose your desired service provider– The home warranty companies generally have a team of technicians at the aid of their customers. However, the homeowner cannot control who the company sends in for the repairs. It is possible that the owner is not satisfied with the service provider the company sends, but they would not have much control over it.
Fixed coverage amount– It is possible that a homeowner does not undergo as much damage as their warranty covers. Although most warranties cost around $300-$500 it is wise to think before considering even to do that expenditure.
Exclude certain repairs–A home warranty does not cover the costs if your home gets struck by natural forces like lightning or flood. These can be the costlier repairs and need more consideration. So, natural disaster insurance can be the better option.
Bound within a network– Every home warranty company has connections with home repair companies. As a result, they make the homeowner between only a few options that they provide. When an owner is stuck between choosing between a selected few contractors, they tend to feel they have lost control. One can avoid this issue by looking up a company’s contractors before signing the deal and go for the best possible option.
Repairs instead of replacements– Every company wants to spend as little time and effort as they can on your problems. The contractors generally choose to repair an item because it costs them less time. It often happens that the repairs don’t last long enough, and the homeowner faces more and more expenses repairing it every time.
Can not expect urgent services– It is plausible that a homeowner needs to get something fixed urgently and they are not able to connect with their service provider. Although in today’s technologically advanced age, many home warranty companies manage websites where customers can easily state their problems and get hold of someone who would fix them for them in a matter of time.
Overall, there are many downsides to buying a home warranty but there are some rock-hard pros too. It depends on a homeowner, how much risk they are willing to take. According to a survey, a homeowner faces at least two damages a year mandatorily, so it isn’t a bad idea, after all, to switch for a home warranty that suits one’s needs. Depending on the above-stated points, one can easily decide what outweighs what according to their perspective. It is advised to look into every minor detail while researching to get home warranty plans for one’s house because it can be an important commitment.