Is Getting a Home Warranty Really Sulit?
If a home warranty is essential, why isn’t everyone buying them? Some say they’re a valuable financial protection for you and the family that you’re building while some say otherwise. Let’s dig into that, shall we?
What is a home warranty?
A home warranty is not the same as a homeowner’s insurance which covers your home in cases of emergencies such as: theft, fire, or natural disaster damages. Home warranties cover specific parts of your house and varies from company to company but they generally cover: kitchen appliances, plumbing, garbage disposals, heating or electrical system components, and so on. Additional coverage, for an added price, includes swimming pools, refrigerator, septic system, or garage door openers.
How much does it cost?
A home warranty can cost thousands of pesos a year. The amount varies by company and they also determine whether you need to pay the costs up front or if they have payment plans so you can pay it off in installments. Apart from the yearly premium, you’ll also be charged a fixed amount every time you call for someone to investigate or fix a possible problem. Contrary to popular belief, costs are not determined by how old or how big the house is. Also, keep in mind that a home warranty doesn’t cover items that weren’t properly maintained nor had pre-existing problems.
Should you get a home warranty?
As a first-time buyer, the answer to this question really depends on the type of house you’re looking to purchase. If you’re buying a brand new home with new or relatively new appliances, there’s no need to purchase a warranty. The house should be covered by the builder for at least a couple of years, and your new appliances have got its own warranties you can hold on to for about 3 to 5 years.
However, if you’re buying a resale or “used” home, you might want to check the appliances that come with it. Does the air conditioner or other kitchen appliances look about 10 to 15 years old? If you find yourself ready to shell out cash for costly repairs, or will be purchasing new appliances down the line, skip it. But if a costly repair can set your budget off, a home warranty is your best bet.
So is it worth purchasing? Not always, but it’s definitely worth looking into. Make sure all your home expenses are Sulit. Plan your finances carefully and always talk to a trusted agent when it comes to warranties an inspections for your home.