Real Estate Tip of the Day Series – #22
A Home Warranty has Value
I know there is a stigma about home warranties. People tend to view them as though they are being ‘up-sold’ at a car lot, right? I get it – I really do. When you are purchasing that new property and are already figuring the significant sum you will be bringing to closing, the LAST thing you are hoping to do is spend more money on the purchase of a home warranty. Yikes!
However, that purchase could SAVE you a significant sum of money if you ever have to use it. A home warranty will cover a large portion of the repair cost to some of the most expensive items in your home.
How do they work?
A home warranty isn’t overly complicated – thank goodness! When a major system in your home [electrical, plumbing, air conditioning, furnace – more on this later] has a breakdown, you will call your home warranty company. They will send one of their service providers to diagnose the problem. If they make the determination that the repair is covered by the warranty, they will fix the issue.
The warranty will cover most of the repair. Keep in mind that these repairs can be VERY expensive – you will be thankful that you have a warranty! The homeowner will only pay a small service fee. Not too bad of a deal, right?
What is typically covered?
Coverage can be more or less, depending on what options you choose with your coverage. The most basic home warranties typically cover HVAC (central heating ventilation air conditioning), plumbing, electrical, and hot water heaters.
Coverage can also extend to essential appliances such as your stove, refrigerator, washer, and dryer. Depending on the features that your home has, you can get luxury areas covered. Swimming pools, second refrigerators, and spas can be added to your policy as well.
How do you pay?
Purchasing a home warranty isn’t a difficult process. You will want to do your research to find the policy that best suits your needs at a fair price. I send my clients to Choice Home Warranty – Gary Frank is awesome! Once you have done your research, a simple phone call or a sit-down will suffice to get your purchase started.
A home warranty is an annual purchase. Most companies will require an upfront purchase for the full year, however, some may work on installment plans to provide monthly payment options.
According to homewarrantyreviews, the average premium for a home warranty in Charlotte is $318.98. The average deductible is just $40.55. This is a small investment when you consider that HVAC repairs can range from $75 to $2,900, and a water heater replacement can cost anywhere from $500 to $1,200!
You may have some questions. You could be wondering if this is something that you are really going to use. Hopefully, you NEVER have to use it, but realistically, life WILL happen.
Not sure if a home warranty is for you? Come by and see us at Leigh Brown & Associates – TODAY! We work within the real estate process on a daily basis. We can answer your questions, and make sure that you are covered in the event that life happens to you. We look forward to meeting you!