Deciding to buy a home warranty can seem like a daunting task. There are many deals out there, and they all have different prices, coverage amounts, and features. To make the decision easier for you, read this list of six things that you should know before buying your home warranty.
What is a home warranty?
A home warranty is a type of home insurance policy that covers repair or replacement costs for appliances and other home systems. The cost to purchase a home warranty is typically added on top of homeowners insurance each year.
Home Warranties are used by people who have just purchased their home, current renters looking to save money in the long term, and homeowners with significant home repairs in the home.
A home warranty is usually bought by a buyer when closing on their new home and can be added to your homeowner’s insurance policy.
Home warranty plans are different in different states
You can get different home warranty plans depending on the state you’re in. The laws in some states are very strict, which is why home warranty plans can vary. For example, the state of Texas covers everything from kitchen appliances to electricals and plumbing, which might not be the case in other states.
Many people take advantage of this in the Lone Star State. The ones who did get it for themselves will suggest that you purchase a Texas home warranty plan because of its benefits. You’ll be protecting your house and your wallet at the same time.
What does a home warranty cover?
People who need home warranties are homebuyers and people who own homes. Homeowners need home warranties so repairs can be made if something goes wrong with their home appliances or the home itself.
Home warranty companies cover most of your major home appliances, including:
- Refrigerators and freezers
- Washers and dryers
- Water heaters
- Air conditioners and heat pumps
- Furnaces and central air units.
How much does it cost to buy a home warranty?
The price of home warranty plans can vary by the home insurance provider. It’s important to shop around for the home warranty plan that provides the best coverage within your budget, as home warranty plans are not the same. Usually, it’s around $75 to $100 per home warranty policy.
The home insurance provider’s home warranty plan may have a deductible that you must pay before they cover your home repairs.
Types of warranties you can purchase
There are different types of home warranty plans that you can purchase, depending on your needs. Here are the types that are usually purchased.
- Standard home warranty plan
- Unlimited home warranty plan
- Furnace protection home warranty plan
- Air conditioning home warranty plan.
This means that the home warranty will cover the parts of these home appliances.
How long will the coverage last?
The home warranty lasts for one year from the home purchase date. This is usually accomplished by adding an extra fee to your home loan or closing costs when you move in. It will be in effect on the date of closing, which is normally 30 days before you move into your home.
Getting a home warranty deal is something a lot of people do because of the benefits. It covers a lot of things around your home, but it differs from state to state so do some research. It’s not too expensive and there are different types depending on your needs which will cover your home for a year. It always pays off to protect your home!
Read Also: 6 Tips for New Homeowners