Tuesday, May 4, 2010

What are the Benefits of a Home Warranty?

What are the benefits of a home warranty?

There are so many obligations a home buyer has to look into upon engaging in a purchase deal. One of your primary tasks is to ensure you are getting your hands on a sound investment. And just to add another layer of protection to your future investment, getting a home warranty attached to the property would be a wise move.

A home warranty is basically a service plan that usually runs for a full year after the purchase. This plan provides funding for repairs of replacements of systems and appliances included in the property. Its typical coverage is the mechanical and electrical components of a new home such as heating and cooling equipment. The damages incurred must be solely due to ordinary wear and tear throughout the years of operating the items.

There are many advantages upon purchase of a home warranty. Realtors especially encourage buyer clients to get this plan. This is beneficial because once you move into the home you are saved from facing major expenses for replacing heating and cooling equipment or other damaged components. And the home warranty can give you some sort of convenience. Once any of the covered systems or appliances is not working, you have the right to claim assistance from the warranty company. When you call them up, they will send a contractor to do the work. Hence, you are saved from scouring for a professional service provider.

Just so your decision can be more guided in getting a warranty for your new home, you also have to take note of some down sides. Although the company will send a contractor right away to repair the damages, you will still be charged for the repairs. However, this should only be a minimal amount. Further expenses can also be expected as some warranties cover home items you actually did not anticipate being included. For example, a one-year warranty for an existing home may include repairs for heater problems but it does not actually cover for the damage costs if it has been due to rusting. You have to shoulder the expenses if this is the case then. You would also have to pay a deductible which can be from $50 to $100.

You really have to be thorough in assessing the details of the home warranty presented to you. It would be better if prior to purchasing, you already know about the timeframe, meticulously itemized list of covered areas, dues and claim process of the plan. There are several companies offering home warranties and you should compare their services. You also have to check on the credibility of the warranty company. Check out web forums on home warranties wherein clients have expressed their approval or disappointment regarding the guarantees they have. Do research about the track record of the company. There are many online articles as well that review the service and coverage of some companies.