When buying older homes it is sometimes very wise to consider purchasing a home warranty. Home warranties can bring peace of mind as well as financial security to your purchase.
Home warranties are purchased to cover or reduce the cost to repair or replace certain home systems and appliances that come with an older home that can potentially bring unforeseen expense to the homeowner. Sellers use them as an incentive to attract more home buyers, who may feel m,ore solace knowing the home comes with a warranty.
What is the cost of a home warranty?
Typical home warranties range from $350 to $600 per year. They can cover the following:
- Kitchen appliances
- Garbage disposals
- Plumbing
- Sump pump – or well water pump
- Water heater
- Ceiling fans and exhaust fans
- Air Conditioning and Heating systems – possible additional costs for these to be insured
- Swimming pools and septic systems may also be covered – usually at an additional cost and depending on the current condition.
What else should I know?
With most home warranties the home owner does not pick the service technician when a repair is needed, the warranty company does.
Make sure the details on warranties as they may not cover everything your logic tells you they should. Look closely for the right warrant for you. Once you have the warranty it’s too late top change. Consumers should shop around and compare contracts . Pay close attention to what’s covered and what’s not in the warranty. It’s very important.
Are they worth it?
Home owner warranties are worth it if you feel that there is a good chance a high price item in the house may fail. Certainly purchasing one before you sell can be an added plus when you place your home on the market. Buyers should be having homes inspected prior to purchase – so asking the home inspector’s opinion always makes sense.
In the end, it really comes down to what you feel is right for you, and how insured you like to be in your life!
