So you’ve bought a home, a perfect investment for you and your family. Now, how about protecting your home and investment from any unforeseeable incidents? Besides, what’s a few hundred dollars compared to your new investment?
So if you are planning to get a home warranty for your new investment, then we suggest you get familiar with how home warranties work. Contrary to popular belief, home warranties are nothing like car warranties. When it comes to something as vast and extensive as a home, there are a lot of variables and factors that come into play. Hence, it can be nearly impossible to cover literally everything. This is why a typical home warranty leaves a few things which can unfortunately go wrong, and you will find yourself not being covered by your policy. It’s important you read the fine print.
Home warranties are sold in different packages. Basic packages usually range around $300 to $400, while more comprehensive coverage plans with add-ons can take the cost up to four figures. The prices can also differ based on the type and size of your home. Although, the prices may seem to go higher and higher, you’d be surprised how often the warranty will save you from unnecessary and unforeseeable expenditure.
Read the Fine Print – Understand the Terms and Conditions
Your basic plan will cover the basic mechanical systems of your home:
- Temperature Control Systems and Vent/Ducts
- Electrical work/switches/receptacles
- Plumbing and Drainage
Your basic plan will also cover some essential appliances, such as:
- Garbage Disposal
- Water heater
Be sure to read the fine print, as most policies have a cap on the liability coverage which will restrict you from getting any major repairs done. If the total expense exceeds the coverage limit, then the homeowner would have to cover the extra expense by themselves.
Often, you’ll find the total cost of the repairs exceeding the total coverage offered, and the homeowner will be faced with two choices. First, the warranty company pays the amount they are liable to pay and the remainder is paid by the homeowner. Second, the homeowner can receive the total payable amount in cast and hire a private contractor to do the job.
We will recommend all homeowners to opt for the first option because warranty companies get much better rate since they are handling home repairs for several homes. The same job would cost almost double for an individual hiring a contractor.
Benefits of Home Warranty
Note that home warranties aren’t exactly a good investment for newly constructed homes, for obvious reasons. Moreover, new homes mostly come with a builder warranty. However, not everyone buys a brand new home and therefore try to get a home warranty from the previous homeowner.
A home warranty will save you unnecessary costs on repairs and is extremely convenient, as one call to the company will solve your problem. This way you can avoid looking for a qualified contractor with reasonable rates.
And for those who are not quite adept at doing minor home repair themselves, can save huge amounts of money. As mostly people waste money trying to do it themselves and then have a professional do the same thing over again, so the job actually gets done.
Contact Bonfe today, for more information about purchasing a home warranty for your family!