Home warranties, like other kinds of insurances, tend to be double-edged swords. At times, they do more bad than good to your financials. However, it is important to note that their importance cannot be denied for there are considerations that need to be made when making such a decision.
Following are some of the considerations that you need to make before concluding if your house needs a home warranty:
An Older House
If you have just come in possession of an older house and are unsure of how old the home appliances are, you should consider getting a home warranty. Why? Well, because your appliances can stop working at any time, mainly because there is a high chance that they may be older than their specified life spans. It is common for people to spend money on repairs shortly after they have purchased an older home.
Fixing a clogged drain is easy, cheap and straightforward. It is the appliances like refrigerators, ovens, motors, heaters and air conditioners that you should be worried about. The repairs required on these appliances are not only complicated but expensive as well. As an insurance against the substantial costs that might arise due to repairs, it is advisable to purchase a home warranty that provides coverage against such expenses on repairs.
As a rule of thumb, if your house is older than five years, you should strongly consider purchasing an adequate home warranty plan, unless there are signs that suggest otherwise.
If the age of the home appliances is known, you can compare them with the appliances’ average lifespan. If the age of the device has exceeded its average lifespan, then you can expect it to break down and need repairs soon. If the appliance is significant and the repair job would need a lot of investment to carry out, then it is advisable to purchase a home warranty.
When purchasing a home warranty, it is imperative to be well informed on any issues in your appliances that might exist. You know why? Well, it is because home warranties do not provide coverage for any conditions or problems that might be pre-existing in your home appliances. What this means is that if you were planning to buy a home warranty to cover for such pre-existing faults, then you better think again, as the home warranty will not cover such expenses. Some of the premium home warranty plans, however, provide coverage against such pre-existing issues, but they come with strict guidelines and a lot of fuss.
If there are home appliances that have been declared to be faulty by an inspector, or if there are appliances that were not plugged in, turned on or presented for inspection then they ALL will be classified as appliances with pre-existing faults. In most cases, you will be unsuccessful in making warranty claims for the repairs of such items
Lower Budget For The Repairs
You know the worst thing about repairs, right? They cost money—at times a lot of it. The fact that repairs require substantial investments means that individuals with all budgets cannot efficiently manage them. The budget problem worsens, especially, if a couple of appliances break down together or if the appliance that needs repair is a significant one. It does not matter whether you have an emergency fund or not. If you feel that a big repair job will be necessary for the near future, you might as well buy a home warranty plan to cover for it.
It is beneficial, especially, if you decide to conduct a cost-benefit analysis to decide whether or not you should purchase a home warranty plan. A home warranty can play the role of a buffer in case the need of some unexpected repairs arises.
An Expensive Taste
If you have expensive taste in appliances and are in the habit of purchasing stuff that is made up of complex circuits, mindboggling machinery, and strange designs, then home warranty might just be the thing for you. Why do I say that? Well, it is because delicate items come with a high responsibility. If these duties are not fulfilled, however, one can be sure that the price needed to be paid will be significant, at least.
When you are investing heavily in automated home appliances or in such appliances that require a significant amount of money to be purchased, you would be better off indeed, if you remember to provide them coverage with an adequate home warranty plan.
Einstein was not the only one who had a problem with time, or so it seems.Nowadays, a majority of the people, are short on time. After their workdays, most people look forward to spending time with their families and themselves. The job durations, however, are widening with time and when you combine that with the time that people, rightfully, have to give to their children, you will find that they do not have much time left, from their daily routines, to spend on DIY repairs. Simply put, they do not have enough time to spend in taking care of their homes.
If you are one of such individuals who does not have any time to spare from their daily lives, then you should consider getting a home warranty in case a crucial home appliance decides to break down in the future. Having a home warranty in such a situation will save you stress, time and money (in case the repair needed is significant). It will also, at times, save you grace in case you are not too handy with the tools yourself.
The Problem of Trusting a Contractor
Imagine that you need to have an expensive appliance repaired. Whom would you contact for such a job? A trusted contractor because you wish to ensure that your appliance does not get ruined as a result of an unprofessional repair job, right? But what if you do not know any trusted contractor? Whom would you contact then?
Typically, such a situation results into your requisition of quotes from multiple contractors and then interviewing them to find one you can trust. If you wish to skip the entire hassle, however, you can just purchase a home warranty plan and automate the repair and replacement process.
Beware, however, that substandard home warranty companies, at times, offer such contractors that are not trustable and capable, at all. It is important, therefore, to trust a reputable company with your purchase of a home warranty.
Selling Your Home
Home warranties give you an edge if you are looking to sell your home. It does so because it reassures the buyers that everything in the house had been maintained well (a necessary condition for home warranty). It also gives them the satisfaction that any repair costs arising from appliance breakdowns, in the short term, will need not be taken care of by them. This is especially necessary when you consider the fact that most homebuyers significantly deplete their savings when they make a purchase.
A home warranty provides potential buyers with coverage against problems that might arise after the deal is closed. This, however, is in no way an excuse for home sellers to not disclose any problems and faults that might exist in the house. Rest assured, getting a home warranty significantly increases the chances of your house being sold
Peace of Mind
One of the most significant advantages that home warranty provides is not tangible. Paying the home warranty premiums every year gives you the satisfaction that those premiums will be the only things that you need. In most cases, the insurance is enough to take care of any immediate repair requirements that might arise during the year. This is important because it means that you do not need to keep buffers for these random repair jobs because, in a way, you have already paid for them in advance.
Home warranty plans are not very expensive when you compare them to certain costs of repairs. However, you can be sure that they are costly. What this means is that you need to be sure that your expenditure on home warranty will bring you benefits instead of proving out to be a mere sunk cost. It is of utmost importance, therefore, that you choose the best home warranty companies and that you find such a home warranty plan that caters to your specific needs. This is important if you wish to make your home warranty an asset for yourself.