Will Your Home Warranty Really Pay Off?

If you’ve recently purchased a home, then it is possible that you were provided with a homeowner’s warranty. This is oftentimes a way for sellers to provide an additional incentive for attracting buyers – especially if the property is older and Will Your Home Warranty Really Pay Off/ or if any of the major systems may soon need to be replaced.

But, while it can be nice to know that if the water heater or the furnace stops working you can quickly have them repaired or replaced, do these warranties really pay off? The answer to that is “maybe.”

Just as with any other type of insurance policy, there can be a wide variety of different coverages to choose from. So, depending on just how extensive your warranty is will deem the policy’s true value to you.

For example, many will cover the cost of repair or replacement of your home’s major systems and appliances. Others, however, may provide even more covered items, such as faucets that aren’t working properly.

If something does go awry, though, it is likely that you will still be required to pay a certain amount of deductible in order to have a service call performed. This cost may be in the range of $50 to $75.

Should an item require replacement, you will typically be required to choose a new one that is of similar cost. For example, if you have a basic refrigerator that would cost roughly $400 to replace, then you won’t be able to replace it with a new $1,500 “smart” fridge. (In some cases, though, the warranty company will allow you to do so, provided that you pay the difference).

In any case, if your home comes with a warranty, or you are considering the purchase of one, be sure that you read over all of the “fine print” prior to moving forward. And, if you are in the market for that new dream home that you’ve been thinking about, then Contact Us. We’ll work you to find the ideal abode.

By | 2016-11-22T20:48:18+00:00 November 22nd, 2016|Advice, Real Estate|

About the Author:

I grew up in the Bowie-Crofton area with my 3 other siblings. As the middle child, I have a natural talent for negotiating! I moved to the Annapolis area for several years after I graduated college, and I currently reside in Arnold with my wife, son, and daughter.