Home warranty. You know what it is, how to choose the best plan, and the benefits of a these services. But when do you need a home warranty? There are several circumstances that will help you understand exactly when to purchase a plan.
Buying a Brand New Home
Having a home warranty on a newly constructed home will protect you from shoddy workmanship. In fact, most states require new homes to have one. This ensures that construction companies are using good quality building materials and design structurally sound homes. Warranties on new homes also cover you from having to do costly repairs on your own. These could be for the electrical system, plumbing and HVAC unit. Depending on the parameters of the agreement, these things could be covered for as long as ten years.
Buying a Pre-Existing Home
If you’re looking to buy a home from its previous owner, you can work the coverage into your contract. This can cover anything from the roof to the basement. It can include appliances, electrical, heating and cooling systems, and plumbing. You can request that part or all of the expenses be paid by the seller. But, be advised that these repairs or replacements can only be done within a certain amount of time after you’ve purchased the home.
Renewing Your Current Warranty
About a year after purchasing your home, you’ll be thinking about if you should renew your plan. The answer to this question isn’t the same for every homeowner, so you need to weigh your options: do you have an older roof, or older appliances that could need repairs any day now? Are you happy with your current agreement, and content to stay with the same company? Read all the fine print in your current warranty; if it covers all the things in your home you’re concerned about, you may choose to renew your plan. You may think of changing policies or companies if you find that you’re underinsured or over-insured (warranty covers optional things that you don’t have in your home, such a a pool or spa.) Be wary of gaps in coverage, because if something breaks while you’re in between coverage dates, you’ll be stuck paying that bill on your own.
Selling Your Home
Much like a buyer can request a home plan, you can also choose to include one if you’re selling your home. This could substantially improve the chances of you getting your full asking price. Buyers will feel more confident about their purchase. By opting to include a warranty, you can choose how much or how little you will be responsible for, and for how long after the home is purchased. You can make this purchase through your real estate agent or through a home warranty company.
These four instances are times to consider getting a warranty for your home. With so many options out there, it’s best to shop around and choose the best policy for your needs. Home warranties can give you the peace of mind you need to make owning your home a joy, or selling your home a breeze.