Home Warranties & Why You Need One

Owning a home is a pricey endeavor. It requires attention and upkeep simply because things get old a need to be replaced. Having a safety net will make the joys of homeownership a bit better, but be prepared to shell out some cash for those repairs. 

For the first-timers, it's always a rude awakening when they wake up to a broken hot water heater, or come home to a busted AC unit. This time around, it's your problem, not your landlords! What's a first-time home owner to do when crises strikes?

What's a home warranty?

Home warranties are just like any other warranty you buy for any other appliance, like a dishwasher or TV. They cover nearly every running system in your home, and cost anywhere from $300 to $1,000 per year.

The beauty of home warranties is you don't have to go shopping for repair men, nor do you have to pay out of pocket for the repair itself. 

All you need to do is call your home warranty provider and explain your situation. From there, the company will contact the repairmen they're partnered with and send them over. Your warrant premium will cover the cost, but  expect a co-pay in the ballpark of $50.

Who should buy home warranties?

These are well suited for first-time home buyers. They are used to calling the landlord when problems arise, and this is similar just a little different. 

Homeowners who are used to working long hours and don't have the time to tinker with repairs really benefit from these warranties. Those who also benefit are owners who don't have the know-how to fix things on their own. 

In many cases, one big disaster can show how important these warranties are and can pay for themselves quickly. 

Warranties don't just belong to first-time home buyers or the busy, they're made for everyone. People who buy homes and pay attention to the inspection should know the life expectancy of their appliances and systems. If they're older models, replacements should be expected. It would be wise to get the home warranty to cover these costs instead of dealing with all the failures at once. 

A good real estate agent will buy the homeowner a year warranty as a closing gift, but if not no big deal. Buy one yourself, and remember older homes need more coverage. 

Long story made short, home warranties are great for everyone, especially new homeowners. They save a ton of time and money when you need them both the most. 

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