Curious to know when can you buy a home warranty? We got you!
Home warranties provide homeowners peace of mind. Knowing that you have a contract to cover the cost of repairs or replacements for major home systems and appliances gives you one less thing to worry about.
According to House Methods, established homeowners pay around $2,000 per year for home maintenance services.
However, there is a right time and a wrong time to buy a home warranty. So when do you reckon is the best time to buy a home warranty?
Read on to find out.
What Is a Home Warranty?
Home warranties are plans that offer the repair and replacement of covered home systems and appliances.
A home warranty plan may cover your HVAC, plumbing, and electrical systems. Some plans may also cover appliances in your house, including a fridge, oven, refrigerator, dryer, dishwasher, etc.
A home warranty offers peace of mind and also saves you from unexpected expenses. So now the big question is when is the best time to buy a home warranty? Keep reading to find out!
Best Time to Buy a Home Warranty
There are four key times when buying a home warranty makes the most sense:
- You’re a first-time homebuyer
- You’re buying an older home
- You’re selling your home
- You’re remodeling your home
1. First-Time Homebuyers
For first-time homebuyers, a home warranty can be a valuable tool. Not only does it provide peace of mind, but it can also save you money in the long run.
If you’re investing in a newly constructed home, your builder may offer a one-year warranty on the home. But this is usually only for defects in quality and materials.
It doesn’t cover the cost of repairs or replacements for major home systems and appliances.
On the contrary, a home warranty will cover the cost of repairs or replacements for home systems and appliances that stops working due to normal wear and tear.
This can be a valuable resource for first-time homebuyers unfamiliar with the cost of maintaining a home.
2. Older Homes
If you’re buying an older home, it’s a good idea to purchase a home warranty.
Older homes often have outdated or inefficient systems and appliances. And, because they’ve been used for longer, they’re more likely to break down.
A home warranty can help in covering the cost of repairs or replacements for major home systems and appliances.
And, if you’re buying an older home, it’s a good idea to purchase a home warranty from a company well-known for its customer service.
3. Selling Your Home
If you’re selling your home, you may be tempted to forego a home warranty in order to save money.
But, if a home warranty covers your home, it can make your home more attractive to potential buyers.
A home warranty gives buyers the peace of mind that they won’t have to worry about the heavy cost of repairs or replacements for major home systems and appliances.
And, if something breaks down, they know they can call the home warranty company to fix it.
4. Remodeling Your Home
If you’re remodeling your home, you may want to consider purchasing a home warranty.
This is especially true if you’re making major changes to your home, such as adding an addition or updating your plumbing or electrical system.
A home warranty can help offset the cost of repairs or replacements for major home systems and appliances damaged during the remodeling process.
And, if you purchase a home warranty before you begin your remodel, you can be sure that your home is covered in the event that something goes wrong.
Is It Really Necessary To Buy a Home Warranty Plan When Buying A House?
Getting a home warranty plan along with your house is the best decision that you can make.
A home warranty covers you in case of an unexpected breakdown of your home appliances and systems.
A home warranty comes in handy when you have purchased a new house and do not want any unexpected expenses to spring out after cashing out loads of money already.
And if you are moving into an older house, then there is no guarantee about the condition of the previous appliances and systems that you get. This is why it is important to buy a home warranty.
Home Warranty Vs. Home Insurance
Factors To Consider When Buying a Home Warranty
There are a some things to take note of while purchasing a home warranty plan to get the best out of it.
- See the Coverage Caps: Home warranties are limited by coverage caps, and you will have to pay for any expenses that go out of your coverage cap. For example: Suppose you have a home warranty coverage of $2000. Now your dishwasher broke down, and the cost of repairing it comes down to $2100; then your home warranty company will pay $2000, and you will have to pay the extra $100.
- Look for Limitations: Your claim may or may not get accepted depending on the terms and conditions of your home warranty plan. So have a good look at your contract and read the policy carefully to avoid any issues in the future.
- Determing the Age of Your Appliance: If your major appliances are new and still under the manufacturer’s warranty, then you can skip getting a home warranty for the time being. However, if your appliances are older, then you should definitely get one for yourself.
- Determine the Age of Your House: If you have bought an older house along with the old appliances, then you should definitely get a home warranty.
The Bottom Line
These are just a few of the times when buying a home warranty makes sense.
If you’re unsure whether a home warranty is right for you, it’s a good idea to speak with a knowledgeable agent who can help you make the best decision for your situation.
FAQ’s
Can I purchase a home warranty at any time?
Yes, you can purchase a home warranty anytime you like. For this, you can simply review a home warranty company.
Go to the company’s website, check out the plans and policies, request a call, and talk with a professional. Seal the deal if you like the home warranty plan.
Should I get both a home warranty and home insurance?
If you want financial protection for both your home and the systems and appliances kept in it, then yes, you should get both a home warranty and a home insurance plan.
Does A home warranty start immediately?
No, most companies require you to wait for at least 30 days before you make any claims. Some companies take even more time, up to 120 days.
Shefali Jain is a Content Editor & Writer at National Planning Cycles.
After completing her graduation in hospitality, Shefali decided to follow her passion and started writing. Shefali has been writing for two years now and contributes to our website as a skilled editor and content writer with strong research skills. Writing product and service reviews, biographies, and book reviews are some of her key areas, among many others in which she specializes.