If you’ve just purchased your new home or you’re looking at buying a new home, you’re probably checking everything off of your list for moving in. One of those items may be a home warranty to help repair and replace some of your major appliances in the event they malfunction. While home warranties may save you thousands of dollars in the event you have to replace one of your most expensive appliances, there are some thing to consider.
How do Home Warranties Work?
Many people purchase home warranties thinking they will work just like insurance but often are surprised when that’s not the case. Home warranties, much like a warranty on a vehicle will cover your home appliances in the event that they malfunction, break, or go out entirely. The warranty generally will cover parts and labor from a serviceperson to repair or replace the appliance in question often with a service fee or deductible required.
Who Do You Call?
Instead of searching for a serviceperson to repair your broken appliance, you simply call your home warranty company and they will send a subcontractor to make the repair. This can save you valuable time since you don’t have to worry about vetting service companies or finding the right one for the repair you need.
There are downsides to this method. In most cases, you have no say in what company comes to service your appliances and if you choose to use a contractor you know or are comfortable with, you may be required to pay an additional fee to your home warranty company. This is often a complaint from homeowners, so before choosing a home warranty company, find out what local companies they align themselves with.
How Much Do Home Warranties Cost?
As with anything in the home, you can spend as much as you want to cover as little or as much as you want. Most home warranties start at around $200 per year which will cover the majority of your home appliances. However, if you want to cover your HVAC system, electrical, and plumbing, expect to spend $800 or more each year for that coverage.
Bear in mind that your annual payment to a home warranty company may not entirely cover costly repair such as replacing your heating and air conditioning system. You may be responsible for a deductible which very well could get into four figures, so make sure you know exactly what you’re getting before signing on the dotted line.
Is a Home Warranty Right for You?
Home warranties aren’t for everyone and may depend largely on how old the appliances in your home are. If your home is newer, the appliances are kept up, and you have adequate savings, it may be worth your money to save the home warranty fees and pay service companies of your choice per incident.
However, if you’re looking for added protection, peace of mind, and potentially saving thousands on costly repairs at the expense of not always knowing who will service your appliances, then a home warranty may work for you.
Buy with Peace of Mind
Speaking of peace of mind, put your mind at ease when purchasing a new home by contacting Tidewater Mortgage Services, Inc. The loan officers at Tidewater can help you and your family find the right mortgage solution for you. Apply online and you can get pre-qualified for a mortgage to purchase your new home in as little as 24 hours.
