A person may ask whether they truly need to buy home warranty insurance. Wouldn’t it make more sense to put the money aside and pay cash when an emergency arises? Although this is an option, there are many benefits associated with this type of protection plan. The following serve as some of these benefits.
Avoid Major Repair Bills
Nobody wants to buy a home only to have a major repair bill come up in the weeks following closing on the home. Sadly, this happens to some individuals. The home inspector may have missed something when they came to assess the property. It may be that the previous owner abused an appliance, and this wasn’t obvious during the inspection.
With a home warranty in place, the new owner won’t be responsible for the repair bill. They may have to pay a service call fee and deductible, but this will probably be less than the actual cost of the repair. They can save their money for other things they wish to buy for the new home.
Transfer to New Owner
A person may wish to buy a home warranty when they go to sell their home. This may help to draw in more potential buyers, as those looking at the home know they won’t have an expensive repair shortly after moving into the residence. They can ask more for the home because this protection is in place. It provides potential buyers with peace of mind, and no price can be put on that.
A Gift to the Buyer
Some real estate agents offer to purchase this protection for clients who choose to sign with them. The agent knows this will increase the likelihood of the home selling for the asking price. As a result, they will make a good commission when the home does sell.
A person can budget for the expense of the home warranty and any associated fees and deductibles for repairs. They won’t need to set aside additional funds for a repair, as they know exactly how much they will be expected to pay. Any additional funds they have can then be used for other purposes or put into savings for items for the home. If they don’t have a home warranty in place, experts recommend budgeting one to four percent of the home’s value for repairs, which can be costly.
Home warranty companies only work with reputable providers. They don’t want to pay for a repair more than once, so they vet the technicians they partner with. This ensures the homeowner won’t need to call for the same problem more than once. The technician will do the job right the first time, or they risk losing the contract with the home warranty provider.
Some homes don’t need warranty protection. For example, a brand-new home comes with a builder’s warranty, so the owner can delay the purchase until this warranty expires. However, homes with older appliances and systems benefit from this protection. The homeowner knows where to turn when a problem arises and how much they will pay, so they can go about their life confident the problem is being handled.