Money

Home Warranties: Are They Worth It?

Many property owners are on the fence about whether a home warranty is worth the cost and if the product makes life easier and more affordable. The products are designed to give owners discounts on vital services and save money. However, the owner must pay an annual fee or premium to retain coverage.

When comparing cost and value, the owner can determine how much is spent each year on maintenance, repairs, and new home system installations. If the homeowner’s expenditures range up to the thousands, it could be worth the trouble to pay a few hundred dollars for a home warranty and cut down on these costs.

Protection for Vital Home Installations

Most homeowners consider a home warranty because of the coverage for vital home installations. A basic plan covers the electrical, plumbing, and HVAC systems. With coverage, the homeowner won’t pay the full price for repairs, maintenance services, and installations of these products.

A home warranty can cover other fixtures in and around the home that connect to these basic home systems. Property owners can learn more about what installations and connections are protected by the warranty by visiting 2-10.com right now.

Warranties Can Be Transferred to a New Property

At any time the owner decides to sell their home and move to a new property, the warranty can be transferred to the new home. The transfer requires a new assessment of the home systems and changes if the owner wants to add new systems or other fixtures to the warranty.
There isn’t a guarantee that the fees for the warranty stay the same after this transfer of coverage. The square footage of the property and other elements related to home systems can increase or decrease the total cost.

A Home Warranty Can Be Included in a Real Estate Sale

When selling a residential property, an enticing bonus is coverage through a home warranty. Buyers may want to add a home warranty when purchasing the property to protect vital systems. If the property has an existing home warranty, the seller can transfer the coverage to the new owner.

When taking over the warranty, the buyer pays the annual fees for the services and retains coverage. However, if the seller has paid the fees for the current year already, the new owner gets coverage at no extra cost for the first year.

The Products Can Be Customized

A home warranty can include a variety of home installations or systems. The coverage is not limited to just the plumbing, electrical system, or heating and cooling units. Standard plans cover everything that connects to each of these critical home systems, including but the ductwork, water heaters, automated faucets, dishwashers, the stove or range, and major appliances throughout the property.

The owner can add more specific items such as a sump pump, septic tank, and even their jetted bathtub. If the owner constructs a guest home, pool, or any new structure that requires plumbing, HVAC, or electrical services, the systems in the new installation are added to the warranty’s coverage.

One Payment Covers 13 Months

A home warranty’s coverage spans over 13 months, not just one year. The additional month gives the owner time to come up with the premium and overlaps the coverage just in case something fails unexpectedly.
The extra coverage is beneficial to homeowners who haven’t paid their annual premiums and gives a cushion of time that some may need. On average, an annual premium for a home warranty can range between $300 and $600 depending on the square footage of the home and what is added to the contract. Home warranty companies can provide a fast estimate for these costs before the customer initiates the coverage.

Discounts for Repairs and New Installations

The main reason for purchasing a home warranty is to cut down on the cost of maintenance, repairs, and new installations in the home. When a system requires maintenance, some owners can face high costs, especially for an HVAC system.

On average, these costs alone can range up to $150 for less than one hour of services. The catch 22 here is that if the systems are not maintained according to the manufacturer’s instructions, the owner can lose coverage through the manufacturer and the home warranty. The great aspect of the home warranty is that these costs are discounted.

Access to Certified and Approved Service Providers

The home warranty company manages all requirements for services. The owner won’t have to get out the phone book or conduct online searches to find viable service providers. The warranty company does this for the customer. The advantage is that all service providers have been screened for quality and perform services according to the warranty company’s standards.

The drawback is that the owner cannot choose a service provider themselves. It doesn’t matter if the owner has used this provider for years and trusts them. If the individual or business hasn’t been approved by the warranty company, the warranty coverage won’t apply to the services.

Ease of Use for Homeowners

When the owner needs services, the process is easy. All that is required is a fast phone call to the home warranty company and the representative sets up the services for the owner. The customer service rep will provide details to the owner about the cost of the services and how much the owner must pay for repairs or maintenance, and the worker offers information about how much of a discount the owner gets when getting a brand-new installation.

Home warranties cover specific services in the home and give owners discounts on necessary services. Many homeowners face higher than average costs each year just for maintaining their plumbing, electrical system, and HVAC installations. With a home warranty, the owner could save more and pay less for these services.

By setting up the warranty, the owner gets coverage for these systems and any connections to the home services. The home warranty company also schedules and arranges services whenever repairs, maintenance, or new installations are needed. By reviewing the pros and cons of home warranties, owners can decide for themselves if the products are worth it.

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