Home warranties can be contentious issues – some people swear by them while others find them useless. In reality, their effectiveness depends on your circumstances.
Home warranty plans provide new homeowners with extra financial security against unexpected expenses due to normal wear and tear. When shopping around for plans, however, it is essential to differentiate fact from fiction when searching for one.
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Myth 1: Warranties are a waste of money
Home warranties provide homeowners with savings against expensive repairs or replacements, yet there can still be problems when using one if a warranty company denies an appliance claim due to improper maintenance (like not changing an oil change regularly).
New home buyers typically receive a one-year warranty with their purchase, which does help save some money; however, those purchasing existing properties can also take advantage of having a home warranty policy in place.
Be wary when researching home warranty providers of online search results that appear to be fake rankings. For instance, companies at the top may boast glowing customer reviews while their Better Business Bureau page contains thousands of complaints and only an overall B rating. Also be careful when reading fine print; many policies exclude certain items like second refrigerators or mini-split systems from coverage.
Myth 2: Warranties are expensive
If you are purchasing a home, be sure to ask your real estate agent whether the seller would cover a home warranty in order to save on annual premiums.
Home warranties may seem costly at first, but they are much less than you may imagine when considering that repairs or replacement costs could run into thousands without one. Also, many providers only cover repairs up to your policy’s deductible amount for covered appliances or repairs.
Home warranties provide homeowners and landlords alike with peace of mind by helping ensure items and systems are maintained appropriately, helping prevent costly mistakes from being made in maintenance decisions, and making managing repairs much simpler when all it takes is one call to the home warranty company rather than searching out contractors individually to come out. This is particularly helpful for new landlords or those without access to repair specialists; saving both time and money while keeping tenants satisfied and stress-free!
Myth 3: Warranties don’t work
Home warranties provide financial protection for appliances and systems prone to wear-and-tear. Home warranties also help save time and money by cutting back on costly repair calls from repair services.
Home warranty companies are able to sell their policies by charging an annual premium in return for peace of mind they provide. But if your home never needs repairs and you never utilize their service, those premium payments might have been better spent building an emergency fund instead.
Many individuals are misinformed and mistrustful of home warranty policies, leading them to mistrust them altogether. Therefore, new homeowners and buyers need to fully comprehend what a home warranty entails before deciding if one makes sense for them. When researching their options and selecting an insurer with excellent quality and customer service credentials.
Myth 4: Warranties don’t cover appliances
Home warranties offer homeowners peace of mind, but they’re no magic wand – you should carefully read through any contracts and conduct research to understand exactly what’s covered and what isn’t.
Many warranty providers include certain appliances or systems as exclusions to their coverage; mini-split systems typically aren’t covered, while second refrigerators tend to fall outside their policies’ scope.
When selling your home, a home warranty can be an invaluable negotiating tool to help get the highest possible selling price. But keep in mind that it doesn’t cover everything; regular maintenance and inspections remain key!