The benefits of purchasing a home warranty

Purchasing a home warranty has its own set of perks for both home sellers and buyers. Here’s a rundown of what’s in it for you if you’re interesting in getting one.

First things first: what’s a home warranty?

One of the most important things you need to know about a home warranty is that it’s not the same as a homeowners insurance. Why is that?

On one hand, homeowners insurance protects your property from perils that may affect the structure of your home as well as your personal possessions. These perils include the following:

  • fire
  • hail
  • property crimes
  • types of water damage

On the other hand, a home warranty is basically an agreement between you and a home warranty company which allows you to avail discounted repair and replacement services. This may cover the following:

  • plumbing
  • electrical system
  • air conditioning
  • major appliances like refrigerators, washers, and dryers
  • the furnace
  • swimming pools

If you want to repair or replace something in your home, you can use your home warranty to examine the problem and avail the discounted service. A home warranty typically costs around a hundred dollars annually.

The benefits of purchasing a home warranty

Basically, getting a home warranty gives you protection from any expensive repair or replacement bills. It’s great especially if you don’t have an emergency fund (we suggest you set up one, just in case!)

Here are other benefits that come with a home warranty:

  • If you’re a seller, offering a paid one-year home warranty to interested buyers can protect you from any buyer complaints after the sale.  According to a survey by Gallop Poll, homes are covered with a warranty plan are also preferred by 8 out of 10 home buyers.
  • If you’re a buyer, a home warranty protects you from unforeseen issues that are borne out of limited information regarding the maintenance of the property’s components.
  • If you’re not too keen on spending hundreds or thousands of dollars to repair or replace a component of the home, a home warranty can take care of your needs without causing a major dent in your funds.

For more information about home warranties in Smith Mountain Lake real estate, contact us at 540.493.1690 or email me at Jane(at)JaneAtTheLake(dotted)com.