Why Should First-time Homebuyers Invest in a Home Warranty Protection?

buyhouseYou probably know already that you can get a warranty to cover the repair/replacement of gadgets such as smartphones and computers. New cars also come with a warranty and some used cars have some time left on their warranty. However, many first-time homeowners are surprised when they find out that they can also buy and get a warranty on their homes.

A home warranty simply refers to a service contract between a company and a homeowner in which the company agrees to repair/replace home systems and appliances that breakdown because of regular wear and tear. Of course, the homeowners pay for the warranty in exchange for the repair/replacement protection. This article provides some insight into why first-time homebuyers should seriously consider buying home warranty coverage.

What does a home warranty cover?

A home warranty is different from a home insurance and a home warranty is not supposed to replace your home insurance. The homeowners insurance policy typically provides coverage and protection on the structure of your home and belongings should you suffer a flood, storm, or fire accident among others. Home warranty coverage usually provides repair/replacement coverage on the following:

Heating and cooling systems

Electrical systems

Plumbing systems

Kitchen appliances

Washer and dryer

There could be other peculiarities on home warranty coverage, costs and terms from one company to the other. This website provides comprehensive insight into the offerings of different home warranty companies so that first-time homebuyers can make informed decisions when buying their home warranty coverage.

Here’s why first time home buyers should buy home warranty

First-time homebuyers can benefit from home warranties in the form of the reassurance that it provides them that they don’t have to be worried about surprises expenses on repairs. Generally, older homes tend to attract high odds that sometime will soon breakdown because of normal wear and tear or because it has reached the end of its lifespan. When you move into a home, it is normal to expect systems and appliances in the house to breakdown soon after you move in.

The sudden breakdown of systems and appliances in the home doesn’t necessarily mean that the seller played a fast one on you. Sometimes the HVAC system (or other appliances) might already be nearing the end of their lifespan and you’ll be faced with the realities of a cold shower two months after you move in.  However, if you have an active home warranty protection, you won’t have to worry about the costs of repairing or replacing the faulty appliance.

First-time homebuyers stand to gain the most from having a home warranty plan because buying a house often leaves a gaping hole in your finances. In the first few months after buying a home, your finances will still be recovering from the down payment and the monthly mortgage payments; hence, you may not be in a strong place financially to offset the cost of repairs and replacements to spoilt systems and appliances.

In addition, first-time homebuyers are often new to their neighborhoods and they won’t know the reliable contractors and services providers that they can trust with the repairs of faulty systems and appliances. However, the company providing your home warranty would have done its due diligence in finding reliable contractors that will be assigned to come to your house.

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