New to the area and don’t know any maintenance techs? Consider getting a home warranty for peace of mind. 

They’re also a great option if you are anxious about buying an older home.

DEFINING THE TERM

Home insurance provides coverage for property damage caused by fire, wind, theft, hail or vandalism, along with liability protection when someone visits your property. On the other hand, a home warranty is designed to reduce the financial burden of major expenses when major systems or household appliances fail. They can also be put in place to prolong the coverage of an expiring manufacturer warranty. Home warranties may be purchased at any time, but they’re commonly included in real estate deals. They might serve as an additional selling point or to increase buyer trust.

INSIDE WARRANTIES 

These warranties provide coverage for repairing, servicing or replacing major appliances and home systems, offering protection in case a high-value item malfunctions. You won’t need to search for separate repair professionals yourself. Instead, you will be linked with nearby affiliated technicians who will manage service requests to assess the covered items. A contractor sent by the home warranty company will arrive to identify the problem and proceed with repairing or suggesting a replacement for the item.

TIMING IS EVERYTHING

Older systems or appliances that are no longer under manufacturers’ warranties are prime candidates for home warranty coverage, since replacing a refrigerator, air conditioner, water heater or furnace can be expensive. Sellers may want to add a home warranty to cover the cost of things breaking down before the sale closes, or as a selling-point incentive. Buyers can purchase the home with confidence that a big bill isn’t looming if something fails. Those who have limited mobility, are on a fixed income or in their senior years may also want peace of mind.

ANNUAL REVIEW

If you opt to invest in a home warranty, bear in mind that most are marketed on an annual basis. Although some companies present two- or three-year options, it is wise to evaluate the coverage each year. What was effective in 2023 may not be as suitable in 2024. 

Your manufacturer’s warranty might be coming to an end, or you could have purchased a new appliance. Alternatively, if you have not used this coverage and prefer contacting local repair services as necessary, ensure that the plan satisfies your current needs.