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Homeowners: Why You Need Home Warranty Protection

Written by  //  2017/07/27  //  For the Home  //  No comments

Home warranties often feature prominently in real estate listings, but few purchasers understand their true value. When selling, purchasing, or building a home, the warranty can protect a family against repair costs when components or equipment fail. Many consumers confuse their warranty with home insurance, but it’s wise to know the difference. Ensuring full protection of the family’s most important asset is especially important during a home purchase, when savings may be depleted.

Warranty vs. Insurance

The two services are understandably easy to confuse. Both will provide repairs or replacements in the home, among other benefits, in return for a small cost that you can budget into your family finances. However, each service provides a different type of coverage. Also, warranties usually only last for a certain amount of time while you pay a monthly premium for your insurance coverage.

Typically, a home warranty will cover components that break down from age, damage, or defects: the appliances, the plumbing, the furnace, even septic systems or pools. If anything goes wrong, simply call your warranty company for assistance. In other words, picture your home warranty like you would a warranty on buying a new car. The idea is that you wouldn’t want to buy a new car and have it breakdown in an unreasonable amount of time. The same thing goes with your new house. You don’t want to buy a home and have to put up money for major repairs right away. This is especially true if the house is newly built. Accredited warranty companies, such as High Tech Home Warranties, often have a nationwide reach, and can therefore dispatch a repair team to your home from a large network of contractors approved by independent authorities such as Angies’ List and the BBB.

On the other hand, insurance companies usually replace items lost to theft, fire, flood, or other catastrophic event. Often, a homeowner will need to replace these items and then submit a claim for reimbursement. Insurance companies will also provide financial coverage if someone is injured on your property, covering your liability and legal costs.

Warranties Help

Warranties are common elements to home sales, protecting both parties from unexpected expenses or equipment failures. For less than the cost of a replacement dishwasher, a seller can offer potential buyers coverage for the entire house, providing an excellent selling point and increasing a buyer’s faith in the integrity of their future home. This can be particularly reassuring when buying older houses. New homes, meanwhile, are required by law in most states to include home warranties for buyers, pushing builders to a higher standard.

Home warranties, therefore, work in tandem with home insurance policies to offer peace of mind and financial protection at every stage of home ownership. By filling the gaps in insurance policies, and protecting the family finances from nasty surprises and unexpected disasters, a warranty’s small expense can save homeowners a great deal of anxiety and money down the road. Bottom line, if you are looking to buy a home, you want to make sure you have insurance, but you still want that home warranty for the first few years that you live in your new home.

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