What is a Home Warranty?
What is a Home Warranty?
There are a number of great ways to protect a home and the investment in it. A lot of these ways can be handled by the homeowner themselves, through maintenance of the home after they purchase it and due diligence during the buying process. But there are some other things that can also be done, and they could go a long way toward making sure a surprise problem doesn't cause a big financial issue for someone who has recently purchased a new home. One of these protective options is a home warranty. Here's what homeowners should know about these.
What Do Home Warranties Offer?
A home warranty is a good way to financially protect a homeowner against a number of things that could go wrong. They generally cover things that homeowner's insurance doesn't, like the HVAC system breaking down or the refrigerator quitting in the middle of the night. Those kinds of things can be costly, but with a home warranty they're covered. There's generally a small deductible, but it's far less than what the homeowner would have to pay to repair or replace the item without the warranty. Not everyone gets these warranties when they buy a home, but they can be a very good idea.
How Does a Homeowner Get a Home Warranty?
There are two ways to get a home warranty. The buyer of the home can request it, and request that the seller pay for it, as part of the real estate transaction, or the buyer can purchase the warranty on their own. Both are effective, and both can give the same kind of coverage. A warranty isn't better or worse depending on which party to the transaction pays for it. When buying a home it's not a bad idea to ask the seller to pay for a home warranty. The worst that can happen is that they say no, and the buyer will have to decide if they want to buy it on their own or simply do without the coverage it provides.
Are All Warranties the Same?
Not every home warranty is the same, so it's important to work with a trusted company. Some home warranty companies offer better coverage for less money. For a buyer who's purchasing their own home warranty, that can make a big difference in the price they have to pay. It can also affect what's covered, although every home warranty company generally covers all the major systems and appliances in a home. Shopping around for warranties is usually never a bad thing, so the buyer can get what's going to work for their needs.
How Long Do Warranties Last?
There are different term lengths on home warranties, but they typically last for a year. If a seller wants to offer a shorter warranty or a buyer expects a longer coverage period, those are issues that should be discussed before the purchase transaction is complete. Otherwise there could be confusion and miscommunication that will have to be addressed at the closing table. In some cases, that could lead to the transaction not closing at all. Rather than take those types of risks, buyers and sellers in Downtown Fort McMurray should be clear about the home warranty being offered, and any buyer who purchases a home warranty on their own should work with the company they're getting that warranty from to make sure it's really what they need, want, and expect when it comes to terms and coverage.