by Shirley Martin

Purchasing a home is one of the biggest investments you will ever make. To protect your investment, you might want to consider a home warranty. Think of the home warranty as a safety net that protects you against the high cost of appliance repairs. If you’ve purchased an older home, it’s a protection you shouldn’t go without. Sanda Sells the Shore shares why.

Home Warranties and the Benefits

Many people mistake the home warranty for the homeowners’ insurance policy. A homeowners’ insurance policy protects against the loss of property and assets following an accident or natural disaster. On the other hand, the home warranty covers the replacement of major appliances like HVAC, electrical systems, washers, dryers and water heaters. The home warranty covers appliances from manufacturing defects and normal wear and tear.

Replacing home appliances or systems often costs more than the average homeowner can afford. For example, if you need to replace your HVAC system, you may have to pay over $10,000 for a new one. If you have a home warranty, you pay monthly or annually to have protection and pay less in repair costs. You may consider this option to help expedite necessary repairs and prevent you from spending hours looking for trusted, local contractors.

Home Warranty Companies and Your Choices

Before you invest in a home warranty, think about the overall cost. As a homebuyer, you have a lot of costs to track. According to the experts, you need to pay the down payment, closing costs and moving expenses too. When choosing a warranty, make sure it fits within your budget.

Warranties tend to come in three different plan options, including:

  • Appliance plans
  • System plans
  • Combination plans

Also, you should consider add-ons. For instance, if you have a hot tub or well pump not included in the traditional plans, find out if you can add on policies. Before buying a plan, consider the types of appliances you need coverage for. Additionally, think about the limit. Most companies have a dollar limit for repairs. If you have an appliance breakdown that you cannot fix, you may have to find a new appliance at a lesser value.

Make sure that you check the reviews of different companies in advance. Online reviews of home warranty providers can help you understand which companies will provide you with a fair deal and customer service and which to avoid.

Home Warranty Documents and Organization

If you choose a home warranty, keep all your documents in a safe, organized space. Nowadays, most people choose to store their important documents digitally and you might want to do the same. When you use technology, all your files become easier to access when needed. In addition to digital files, you can keep a file cabinet with all the physical documents associated with your new home.

Choose Wisely and Stay Organized

Most homeowners benefit from a home warranty. The warranty protects you from paying out of pocket if appliances break down. The home warranty can also help set you up with trustworthy contractors to perform the repairs. But be sure to review warranty companies using reputable online sources before committing. And always save your files digitally so you can access them quickly and easily if you need to submit a claim. It takes some time to get things organized, but you’ll find that a good home warranty can be a real lifesaver!

Looking for a Delaware or Maryland beach home? Start your search with realtor Sandra Erbe!