A home warranty plan is something that every real estate investor ought to be thinking about ahead of buying a property. This type of warranty will protect your finances in the event of something going wrong with the property, whether it is an appliance fault or the wear and tear of a boiler system. Do not get home warranty confused with homeowner’s insurance because an insurance plan does not offer the same kind of coverage.
In fact, if you don’t have warranty in place, you will not be covered for the cost of repairing/replacing home system components. Also known as HSA, home warranty offers a whole host of benefits for both the buyer and the seller.
Let’s look into into the perks associated with this type of coverage:
- Protection Against Costly and Unexpected Repairs - Although you will have the chance to inspect the property for any damages or underlying problems during the open house, this does not mean that a problem will not surface in the near future. Wear and tear from using appliances, such as the lights, heating, and air conditioning, is inevitable. Rather than digging deep to fund unexpected repairs, you can rely on home warranty to cover the costs. Most major systems and appliances are covered on the standard plan.
- Full Replacement - There may come a time when the technician is unable to resolve the problem and make the appropriate repairs. In the event that this does happen, a full replacement will be provided with the costs covered by the home warranty plan. What’s more, the contractors are guaranteed to be completely professional and licensed to perform the job, so you can feel confident that the end result will be satisfactory.
- Small Service Fee – When you have no option but to contact a technician to visit your home and perform a repair or service on your home appliances, the fee will not leave you strapped for cash. Considering you will be paying a monthly fee for warranty coverage, the service fee will be considerably less than it would be if you weren’t investing in coverage.
- Annual Renewal - Once your yearly coverage is up, the home warranty plan can be renewed. It is completely up to you whether or not you go ahead and renew the plan, but since you have the opportunity to call for service as many times as you wish, chances are you’ll want to renew the plan before it actually expires.
There are some things you should know before purchasing a home warranty, such as the fact that policy prices vary from $200-$600 annually and when/if you make a claim; you will be required to pay a deductible. Take it upon yourself to find the best possible home warranty plan available by browsing your options first. Generally, service agreements will last for a year or more, but this totally depends on the provider of HSA. For the best protection, consider gaining coverage from a warranty plan and a homeowner’s insurance plan.