Smart Homeowners Make Smart Investments on Home Warranties

Smart Homeowners Make Smart Investments on Home Warranties

The question, “What is a home warranty?” is one that puzzles many new homeowners. Anyone who has experience with extended service contracts can understand that they cover anything that goes wrong with a purchase within a certain period of time. Warranties are similar in some ways, though a home is likely one of the most expensive purchases a person makes in a lifetime. Any homeowner can obtain home protection with a home warranty to protect his or her investment. Owners have a way to guard against the cost to repair or replace the more expensive breakdowns that may occur in a home.

Warranties can cover as many or as few items in the home as an owner may choose, and the cost of coverage is based on how many are included. A home warranty pays for repair of possessions that statistics show has a tendency to have performance problems. When one asks, what is a home warranty? it is important to understand that it is not a substitute for home owner’s insurance that protects against fire, flood and major catastrophic loss. Warranties usually provide the funds to replace or repair the more expensive system components and appliances within the home.
Convenience is a major factor in the reason a homeowner chooses home warranties. In the event of an equipment breakdown, the homeowner has to notify the warranty company of the situation. That is where the protection plan starts to assist the home owner by having an approved list of vendors and service people who can help. The owner has no responsibility for locating a qualified service or for verifying the qualifications of any worker who enters the home. The convenience of not having to take time off from work to solve problems at home is likely worth more than the price of many warranties.
When purchasing a home from a previous owner, many people obtain a home inspection to make sure that everything is in working order. Some real estate contracts include a clause that guarantees the new owner that costs for breakdowns or failures within a certain period of time are covered by the previous owner. In the absence of those safeguards, a home warranty assumes even greater importance. Lack of familiarity with the neighborhood of the new house adds to the essential nature of home protection through warranties. With all service providers and repair people already established with the company that provides the warranty, the owner does not have to find reliable contractors to make necessary repairs.
The peace of mind that a new home warranty affords is of great value to a new owner of an existing home or of new construction. What is a home warranty then? The answer is simple. It is the easiest way to have home protection that ensures a quality of life that all homeowners desire.
Rachel Holloway is a freelance blogger that hopes to educate all homeowners about home warranties and protection plans. Visit her blog here.

1 Comment

  1. one
    Comment by Joyce Del Rosario: Jul 23, 2012 at 11:45 PM

    The last thing a home buyer wants to worry about after closing is what could possibly break or malfunction in her new home. Since that can cover a multitude of items and systems, for peace of mind, it’s a good idea to get a home protection plan. Great details. Thanks.

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