In The Know
Home Warranties — What To Know
There’s upkeep involved in any place you live. When you’re renting, you don’t realize how much goes into maintaining a home. When the sink clogs or the hot water tank goes out, your landlord breezes in and takes care of the problem. These same issues (and more!) will arise in any home, whether it’s old or new. Being prepared and understanding your options as a homeowner is vital so you don’t break the budget and you keep your sanity.
AVOID THE UNEXPECTED
Home warranties offer protection and assistance when unexpected problems arise. Even if you think your home is perfect, something behind the scenes is bound to pop up. FYI, home warranties cover major mechanicals and appliances, but don’t cover structural issues, the foundation, or weather-related problems.
DIFFERENT THAN INSURANCE
A warranty is NOT the same as your homeowner’s insurance. Insurance is required by your lender in order to close; a home warranty is not a required item for closing. Also, homeowner’s insurance is wrapped up in your monthly mortgage payment, while you pay the home warranty company directly with either a one-time payment, or split into smaller payments if the company allows.
Sellers are able to transfer their home warranty over to buyers when they list their home. For most buyers, this means a few months or a year covered at no cost to you. (Score!) It’s the buyer’s responsibility to renew a home warranty plan after that time period has passed in order to continue coverage.
PEACE OF MIND
If a home warranty isn’t provided by the seller, homeowners are still able to purchase coverage on their own. Warranties can range anywhere from $350 to $800, depending on your plan. It’s a small price to pay for peace of mind!