A home is probably one of the most significant purchases you’ll make in your life. This important choice will impact you for years, so you want to choose a home that fits your needs. It should also be affordable and not put you in a bad financial position. As a homeowner, you will realize that much responsibility comes with maintaining a comfortable, safe place to live. The costs of this home maintenance and upkeep will only add to your mortgage and insurance obligations.
It’s inevitable that your home will need repairs at some point and that some major appliances will need replacement. If you are struggling to make ends and keep up with your mortgage payments, taking care of maintenance and fixing broken areas can be difficult if not impossible. This is where a Texas home warranty can come in handy and provide peace of mind.
This coverage will pay for repairing or replacing some appliances and home systems up to a certain amount. This financial protection is a wise investment that you need to take advantage of.
How it differs from insurance
When you purchase a home, you are required to have homeowner’s insurance to qualify for a mortgage. This protection will cover losses you suffer in the event of peril or mishaps such as a fire, severe weather, burglary, or vandalism.
On the other hand, a home warranty is not required but is optional coverage that you can purchase for a year at a time. It will pay for the repairs and replacements of items that break down due to normal wear and tear or sudden and unexpected problems.
The original builder’s warranty may not apply any longer
If you are moving into a home that is 10 years old or older, you probably won’t be able to rely on the original warranty for help. A builder’s warranty typically covers structural problems for that long. Components in the home such as the HVAC and plumbing systems may have shorter time frames depending on the builder.
The good news is that you can still have protection on major appliances such as refrigerators, dishwashers, ovens, cooktops, and garbage disposals. Most home warranty plans also provide coverage for the electrical, HVAC, and plumbing systems. You can also have the roof and even a swimming pool covered when you buy a home warranty. This plan will pay to fix or replace these items when you purchase coverage, which can cost anywhere from $300 to $600 a year.
The plan can save you lots of money
When you consider how much it costs to repair or replace appliances and home systems, it makes sense to purchase a home warranty. Even minor repairs on a kitchen appliance can cost $100 or more. For more extensive work, you could end up spending hundreds of dollars out of pocket.
The figures can jump up even more to get the heating and cooling or the plumbing working properly. In these cases, you could be out several hundred dollars. If you have to replace any of these items, you might be spending thousands or even more than $10,000.
With a warranty, you get financial help in covering these costs. The plan will pay for the work-up to a specific amount, as there is a cap per item on how much the warranty will pay. The cap will vary depending on the plan you select. It can be as little as $500 but may go up to a couple thousand per appliance or system. If you need to do work on multiple areas of the home, your warranty could help you save thousands of your hard-earned dollars.
There are bound to be issues
Another reason why a home warranty is a smart idea is that you will sooner or later deal with broken-down items. Even the highest-quality appliances don’t last forever. The HVAC, plumbing, and electrical systems should work well for several years. However, if your home is older, chances are good that these systems will start giving you problems before long.
Don’t blow off the need to get a home warranty because you don’t think anything in your house is going to sputter or fail. Issues will occur, and ignoring these problems will only cause them to get worse. A home warranty will give you the help you need to face these problems head-on.
Takeaway: Be aware of the limitations
A home warranty is a good idea, but it won’t apply in every situation. There are also limitations you should be aware of. In addition to the cap, you also need to know that you will have to pay out of pocket for a service call.
You also should not expect coverage if something breaks down because you failed to stay on top of regular maintenance and care. Your warranty won’t apply either if you misuse the item or break it on purpose.
As long as you know how a home warranty works, it’s a smart decision that protects your home and your finances.