Pros and Cons of a Home Warranty

!±8± Pros and Cons of a Home Warranty

If you are not aware of what home warranty is, it is a service contract that will guarantee the house against repairs and replacements on equipment and appliances, mechanical systems, electrical installation and heating systems. It is important to go over the warranty policies first before getting one to familiarize yourself of what they cover. Keep in mind that each warranty company is different and normally, they do not cover all repairs the home needs.

This has also become a staple in the real estate deals. In fact, most real estate professionals are urging the sellers to shoulder a year of the said warranty. However, there has been a lot of complains regarding the home warranty. This makes it essential that you know the pros and cons of having it.

Pros

1. You do not have to pay for repairs or replacements. Since this is covered by the warranty, you do not have to worry if any of the covered appliances or equipments breaks. The homeowner can be certain that someone will attend to his repair needs.
2. You can get it easily. Usually, it will only require the homeowner to subject his house for inspection. There are also instances wherein companies no longer require this as well.
3. You get to decide the length of the coverage. This usually depends on the amount of money you are willing to shell out for the warranty. Most companies will give you choices. They will only cover those periods that you are willing to pay.
4. There are several companies to choose from. This means that you will not run out of choices. You also have the luxury of looking around and finding the company with the best policy. You will also have the option to choose the quote you can afford.
5. This simplifies the sale of the house. Most buyers are enticed to purchase a home, which has a one year warranty. This is a very attractive option because buyers will want to be secured of the property they want to purchase.

Cons

Although there are a lot of benefits in having the said insurance, most homeowners are not thrilled about it. This is due to some of the companies who refuse to cover certain repairs even if it is part of the policy. Here are some loopholes:

1. You may be paying more than what the insurance covers. This is why you have to read the initial offer of the company. The contracts will indicate that the repair is free, however, you might be charged for miscellaneous expenses during the repair.
2. Normally, pre-existing damages are not covered. This is why you have to have the house inspected before closing the deal. If there are any damages, no matter how minor it is, you have to request the seller to have it done.
3. Warranty companies are out to make profits. This is among the main causes of complaints. Most companies would rather send someone repeatedly to repair the equipment, rather than replace them.
Having a home warranty is beneficial. However, you have to look for a good company that offers the best policy for your home.