When you begin the process of looking for a new home to buy, you may notice some listings that include a home warranty. Some listings will include the time remaining on a previously purchased home warranty, which the homeowner will include in the purchase. If you purchase a new home, the home warranty will likely be part of the package the builder offers as part of the contract with your purchase. In still other cases, a homeowner can opt to purchase a warranty for their new home through a third party that specializes in offering home warranties. Here is a quick introduction to how a home warranty works and what homeowners need to know before buying one.
What is a Home Warranty?
A home warranty is a service agreement that normally includes both repair and replacement of parts of the home that can become damaged or break. It’s designed to help homeowners offset the cost and stress of needing an emergency repair. This can include the kinds of issues that can commonly affect many different parts of the home. Most home warranties last for one year, but in some cases the homeowner can pay a little more to have the warranty last longer.
What Is Covered Under a Home Warranty?
The typical home warranty includes either repair or replacement of important parts of the home. This means a technician will come to the home when the issue occurs and assess whether the item can be fixed, or if a totally new component is needed. The warranty will cover all of the costs associated with this, including the service call, cost of the equipment and any labor charges.
Some of the most commonly replaced appliances and structural pieces include:
- Kitchen appliances
- Roof leaks
- Stucco or other exterior surfaces
- HVAC System
- Washer and Dryer
Who Needs a Home Warranty?
A home warranty can be a good idea for any homeowner that has a full life and does not have the time, skill or tools needed to perform home repairs. They can also be handy for those who are first time homeowners, as they may not be prepared for all of the responsibility that comes with owning a home. Maintenance needs and costs can catch a new homeowner by surprise, particularly someone who is used to renting and having a maintenance line to call when something goes wrong.
In other cases, home warranties can be useful due to their physical capacities, such as:
- Senior citizens
- Disabled or differently abled people
- People with small children
- People with chronic health conditions
Having a home warranty gives these homeowners peace of mind knowing that if something happens, they have someone on call to help resolve the issue as soon as possible.
If you’re looking to purchase a home, the Core Group can help. Click here to contact us.