Springtime is approaching rather quickly and before you know it, you will be in the search for a new home! One thing many don’t think about in their home search is purchasing a home warranty. Home warranties may not be for everyone and there are some things you should know about them.
First things first: a home warranty is NOT the same as home owner’s insurance. These are two separate entities. A home warranty is to help protect your home’s major appliances and systems. It is purchased to hopefully help save you money when things stop working or breaks unexpectedly. Your home insurance is to protect you financially in case damage occurs to your home.
However, a home warranty I similar to other insurances in that each year you pay a premium and you are covered under warranty. If something were to break, you would pay a deductible amount (this can fall between $50 and $125). The home warranty company will then send someone out to fix the appliance and in severe cases, replace the appliance.
What are the benefits to a home warranty you ask? Well, peace of mind. If something breaks you know you won’t have to research or pay for someone to look at the appliance and then charge for labor and the appliance itself in case of replacement. If you aren’t handy, a home warranty may be a good choice for you. It can also be a good choice for first time homebuyers as you aren’t familiar with your home’s systems or how they’ve been working.
DISCLAIMER: Although a home warranty may have it’s benefits, the biggest drawback is that not everything will be covered. You must read over the specific terms of your warranty and ask as many questions as you can. For instance, home warranties won’t replace an item if it hasn’t been properly maintained.
Ultimately, purchasing a home warranty or not will be up to you. Make sure to do your research and ask the questions you need to ask to see if it’s a good choice for you and your family.
About the Author: Team Panella is your “go to” real estate team for all things real estate in Louisville.