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Why You Need a Home Warranty for a New Home

Homebuyers compare better ways to protect their homes and the installations they choose for the property, IPM Chico notes. All homes have electrical and plumbing services and the installations present a hefty price tag when repairs are needed.

When compared to homeowner’s insurance, home warranties provide individualized coverage for specific installations in the property. Homeowners can customize the warranties and maximize coverage for their installations, especially installations that may cost over $1,000 to replace, such as a central heating and cooling unit. When choosing a home warranty, the property owner must consider everything covered by the product and compare the annual costs.

What is a Home Warranty?

A home warranty provides coverage for vital installations throughout the home. It is not the same as homeowner’s insurance that protects the home from certain perils. The warranty applies to specific installations, such as the wiring, plumbing, HVAC, and appliances. The homeowner reviews all installations that are covered by the warranty they select. Homeowners can learn more about warranty coverages by contacting a warranty company right now.

Protection Against Home Defects

When buying a new home, it is critical for the homeowner to purchase a home warranty to acquire protection for all new installations. If for any reason, something becomes faulty, the warranty helps the new homeowner get repairs and replacements for the faulty installation.

If a new system fails, the homeowner contacts the warranty company, and the warranty company sets up repairs or replacement services according to the homeowner’s needs. If they cannot repair the issue, the warranty company dispatches replacement services to the property owner’s home.

Controlling the Cost of Appliance Repair and Replacement

Appliance repair
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With a warranty, the property owner can control the cost of new appliances and repair services. Instead of paying the full price for the new appliance or even the repairs, the homeowner gets a discount through their home warranty. The warranty may give them access to higher quality appliances with features they cannot afford on their own.

By choosing the home warranty carefully, the property owner gets the appliances they want to replace faulty products that aren’t working properly. Repairs are also available for appliances regardless of the age of the product.

Replacements for Heating and Cooling Systems

Heating and cooling systems have a life of about ten years. After ten years, the property owner will see serious signs of wear and tear. At this stage, the property owner will need repairs quickly to extend the lifespan of the systems and avoid sudden breakdowns.

With a home warranty, the property owner gets discounts on repairs, replacement services, and maintenance. As long as the heating and cooling systems are maintained, the property owner will retain their home warranty coverage.

Coverage for Swimming Pool Installations

Swimming pool
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Swimming pools are often added to the home warranty to obtain coverage for the pool system’s electrical elements. When customizing the warranty, the homeowner can add these installations to get more well-rounded coverage. With a pool, the owner may have a cool cleaner that removes leaves and debris from the water. Since it is electric, the coverage will apply to this installation, too.

A standard home warranty does not cover swimming pools, and the property owner will need to review their warranty. Adding the pool may increase the annual premiums, but the homeowner will get discounts whenever they need their pool serviced, closed for the season, or repaired.

The Cost is Minimal as Compared to the Benefits

When reviewing the cost of a home warranty, it is minimal compared to the savings it will generate. However, homeowners should review their budget when choosing a warranty. Some homeowners with more modest budgets may want to apply their coverage to installations that are more costly and will generate a higher-than-average expense if the products must be replaced.

However, homeowners who have an extensive budget may get the best of both worlds by adding all installations to their warranty. When comparing warranties, each item’s total cost and the annual fees show the homeowner which option is best for them.

Transfers to Your New Property

The home warranty will transfer to a new property when the homeowner sells their home and buys another property. However, they need to review all terms of their existing warranty and ensure they have adequate coverage for installations in their new property.

Sometimes, sellers offer the existing warranty to a buyer, and they start a new home warranty with their next property. When comparing the cost, the homeowner must consider what installations are in the new property, how old these installations are, and the property’s square footage overall.

Faster Access to Repair Services

Home repairs
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The property owners get faster access to repair services with a home warranty. Instead of calling a repair service, they contact their warranty company, and the warrant company manages all requirements for them. The warranty company routes a repair service to the home, and the service provider determines if the product is repairable or if it needs to be replaced.

Another aspect to keep in mind is that the property owner will have to pay the service provider a small fee for their services. When comparing costs, it is best to calculate the total cost of repairing pricier installations and then comparing the cost to these fees. Typically, with a home warranty, these fees are much lower than typical repair costs.

Homeowners consider the advantages of a home warranty over just using their homeowner’s insurance policy. The major difference is that the homeowner’s insurance doesn’t cover individual installations. It covers only the area of the home that was damaged. Certain perils must happen to get coverage under the insurance policy.

A home warranty covers major installations in the property, including the electrical wiring, plumbing, HVAC, and appliances. Homeowners can get more coverage through a warranty if they customize it. A careful review shows the homeowner what coverage they can get from the warranty.

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