If you are in the market for a new home, you may be considering the purchase of a home warranty to make your investment more secure. As a home buyer, you assume a certain amount of risk, including not knowing which appliances or home systems may need to be replaced at the time of purchase. And let’s be honest: Allocating money for a major home repair may not be easy immediately after taking on a new mortgage payment and the closing costs associated with buying a new home.
Home warranty coverage is designed to reduce homebuyer worry and provide a level of assurance and peace of mind. If an appliance breaks or needs repair during the warranty coverage period, replacement or repair work will be done at a minimal cost with little to no headache for the homeowner.
What will a home warranty plan cover?
The items covered by a home warranty plan may vary by company but commonly include some of the following items:
- Furnace
- Air conditioning
- Ductwork
- Major kitchen appliances
- Refrigerator
- Stove
- Dishwasher
- Garbage disposal
- Microwave oven
- Electrical components and wiring
- Indoor plumbing
- Toilets
- Washing machines
- Dryers
Some home warranty companies will allow you to pay extra money to have items like swimming pools and saunas covered. However, you should not assume they are a part of your standard warranty. In fact, you should verify and compare warranty coverage from different providers before signing any contract. Each will have different coverage limitations and allowances.
Home warranty coverage benefits for the homebuyer
Home warranty benefits to the homebuyer are extensive. You can rest assured that if your furnace stops working or your refrigerator coolant needs to be replaced, one phone call will set the repair in motion. You won’t have to worry about finding a trusted contractor or, even worse, shopping for a new appliance unexpectedly. And, if you are getting a home warranty as a security measure when you buy a new house, you may be able to negotiate to have the seller pay for the plan.
Home warranty benefits for the seller
If you have a warranty on your home, you may be more likely to attract potential buyers. A home warranty can give them peace of mind that they will have fewer unexpected repairs upon moving in.
Negotiate for a home warranty plan during the buying process
Negotiating to have the seller cover the cost of home warranty coverage may be as valuable during your home buying process as seeking mortgage pre-approval . You can rest assured knowing that the first year you spend in your home will be relatively stress-free when it comes to making expensive repairs. And, if the seller offers to pay for it, it comes at no additional cost to you.
Sponsored content was created and provided by RBS Citizens Financial Group.
