Your home and all its contents are valuable. The structural framework of your property is typically covered through homeowners’ insurance against the elements and natural disasters. However, the inner contents – the systems and appliances – are covered by home warranty plans. When evaluating the efficacy of home warranty options, its important to consider the costs of repairing and replacing faulty, dysfunctional, or inoperable systems. According to industry reports, the following average cost considerations must be borne in mind when purchasing or replacing appliances:
- Appliances and systems are subject to extremely strict returns policies. If you’re going to buy new appliances, be sure that you check them completely while the delivery guys are at your property. If you wait more than 48 hours to complain, you may be saddled with the appliance. And these costs can quickly spiral into thousands of dollars. Check, and check again when buying new appliances.
- New appliances are typically associated with a manufacturers’ warranty. This should protect you for at least 1 year after the purchase. If an appliance is approaching the halfway point of its lifetime, that’s when you need to seriously consider a home warranty plan. If the costs of repairing an appliance are more than 50% of the cost of the appliance, then its better to buy a new appliance or system.
- For a fee of $300 – $600 per annum, you can expect to fully cover the costs of wear and tear, possibly even the replacement costs of your home appliances and systems. If possible, it may be preferable to get a home warranty plan included when you buy a home. Try to negotiate with the seller for at least 1 year’s home warranty coverage thrown in with the deal. If you are already in your home, then shop around the best home warranty coverage with a multitude of providers. The best ways to do this include reading up on home warranty reviews from reputable sources.
- Leading economists, Brian Melzerm Efraim Benmelech and Adam Guren state that new home purchases are typically associated with much higher additional expenses in the form of purchases of kitchen appliances. According to Benmelech, ‘….people may moving into a house with all new appliances but may not like how they fit with the décor so they’ll replace them.’ This means that it’s important to consider the quality, age and functionality of appliances and systems when you purchase a home. If you like the appliances, then a home warranty plan is absolutely essential.
- If you’re looking for peace of mind after making a real estate purchase, there is no doubt that a home warranty plan can help. Home warranties cover multiple items including the following: Heating and cooling systems, electrical systems, plumbing systems, washers and dryers, appliances and garbage disposal systems. The more comprehensive coverage you have, the better. Home appliances and systems are expensive and replacing them can take a huge chunk out of your savings.
Why Should Buyers and Sellers Consider Home Warranties
There are many benefits to home buyers when it comes to having home warranty coverage. For one thing, home warranties offer protection against the ‘shellshock’ expense of having to contend with thousands of dollars in purchase costs for new appliances. Be advised that new homes do not require home warranties. The money that you have spent on home warranty plans for the first 1 – 3 years may be put to better use in a savings account. As soon as appliances show signs of wear and tear, then a home warranty is no longer an optional item – it becomes a must-have plan. Remember that manufacturers’ warranties protect your brand new appliances for a short time. After that, it’s all on you.