It can be a nightmare to have something break down right after buying a house. After paying for a down payment, closing costs and moving expenses, you might not have much money left in your bank account to cover an unforeseen repair bill.
Things can be even more stressful if you’re living in an unfamiliar area and you have no idea which company to call for help. A home warranty can alleviate that stress.
How a Home Warranty Works
A home warranty is a service contract that can cover one or more appliances, such as the refrigerator, stove, washer and dryer, if they become damaged or break down due to regular wear and tear. A home warranty can also cover one or more systems, such as plumbing and HVAC.
If something breaks down, you can contact the home warranty company and have a contractor come to repair or replace it. You’ll have to pay a fee for the service call.
Benefits of a Home Warranty
A home warranty can give you peace of mind, especially if you’re buying an older house or you know that some of the appliances or major systems are several years old. They’re bound to break down at some point, and when that happens, a home warranty can help you avoid having to pay a large repair bill, buy a new appliance, or have a system replaced.
Why a Home Warranty Can Be Particularly Helpful If You’re in a New Area
If you’re moving to a new city or state, you might have no idea which home repair companies have reliable workers and reasonable prices. If something breaks down and needs to be fixed as soon as possible, you won’t have time to read reviews from previous customers and check references. You’ll just want to get the problem taken care of.
With a home warranty, you won’t have to vet contractors or simply pick one and hope for the best. The home warranty company will have a list of pre-approved contractors who meet their standards. When you report your problem and request a service call, the company will dispatch one of those contractors to handle it.
Find the Right Home Warranty for You
Not all home warranties are the same. They vary in terms of which appliances and systems they cover, how much coverage they provide and how much they cost.
Before you choose a home warranty, shop around and compare plans from different companies. Think about the age and condition of the systems and appliances in your new home and which ones you’re most concerned about. You might want to purchase a home warranty that only covers a few things, or you might prefer to spend some additional money to get a plan with more comprehensive coverage.
