If you’re in the market to buy a new home, one of the topics you may have run into is “home warranties.” Of course, once you read a few articles about home warranties, the next question you’ll ask is, “should I buy a home warranty?” In this article, we will try to tackle some of those questions.
What is a home warranty?
A home warranty is essentially an agreement that the new homeowner signs with a company who agrees to provide home repairs and replacements over a specified period of time.
The thought is that by getting a home warranty in advance, the home buyer can save dollars and the headache of replacing appliances or other parts of the house. Typically, people agree on the contract with a home warranty firm for peace of mind, and the cost savings associated with having one.
Sometimes, the seller of a home will include a home warranty as part of the sale. This way, the buyer knows that if something goes wrong, they will have some help fixing the problem.
What does a home warranty cover?
The home warranty is meant to give buyers peace of mind in the event of a major appliance failure or other home issues. Here are the different scenarios which most home warranties cover:
- Electrical system
- Garage door opener
- Garbage disposal
- Heating and cooling units (HVAC)
- Hot water heater
- Kitchen appliances (refrigerator, dishwasher, trash compactor, stove or oven)
- Plumbing system
- Washer and dryer
What should I know when shopping for a home warranty?
You should be prepared to ask precisely what the home warranty covers. It is important to check that all appliances, heating and cooling, and electrical systems are included in the warranty. Carefully look over the contract, which will state in print which specific appliances the it covers.
Home warranties are typically a one-time expense. Ask your realtor for their suggested home warranty companies.
“If the homebuyer does not purchase a home warranty, then they should create a savings account to save money in for any future expenses,” says Dianne Pillsbury, a Mortgage Loan Officer here at Chesapeake Bank.
Do you have more questions regarding how to find a home, or about the mortgage process? Check out our Ultimate Guide to Buying a Home, which is loaded with tips and tricks. Learn who the best of the best are in our local area as well.
When you’re ready to start the process of buying a new home, contact our Mortgage Team, who will give you the very best one-on-one service.
