Buying a house can be a tedious affair. First, you will be surveying a lot of properties. Next, you will be weighing the pros and cons of every building. Once you settle on a house, you will have to complete all the paperwork hoping that the seller doesn’t back out at the last moment.
After you purchase a property, you may find yourself dealing with chronic repairs and remodels. There may also be some latent cost that may surface when you have already moved in. Hence, we can say that settling in a new house can be quite a headache.
Therefore, you must find ways to delegate your problems so you can sit back and relax. One such solution is buying a home warranty plan. Home warranties cover all the mechanical repairs such as plumbing, electrical fittings, and other such house repairs. In this article, we will give you some tips to buy a home warranty that’s worth your money.
Difference between a home warranty and a home owner’s insurance
Before setting out to buy a plan to cover unprecedented costs, you must first understand the difference between a warranty and a homeowner’s insurance. A homeowner’s insurance is supposed to preserve your financial interest in the house.
It doesn’t cover the mechanical repairs that may come up over time. Instead, in a homeowner’s insurance, the liability is on the mortgagor to cover the cost in case of unforeseen damages in the event of a flood, tornado, heavy rain, etc.
Therefore, we can say that both these plans cover completely different things. A home warranty covers all the mechanical repairs that stem from within the house, such as plumbing, heating, electrical fittings, etc. Additionally, home warranties also cover appliances damage. Hence, the purpose of the warranty is to ensure that you don’t lose money on routine repairs and maintenance.
Take note of the coverage being offered
Insurance companies offer a customized insurance plan based on customers’ needs and requirements. Additionally, the coverage premium depends on the size of your house and loss history evaluation.
However, the default coverage of home insurance plans includes all the mechanical repairs. Apart from those repairs, you can also add certain appliances to your plan.
However, add only those appliances that are expensive to replace and have higher chances of breaking down. Do a thorough cost analysis where take into account the price of the premium and price of the appliances repair generally.
Sniff around the market
Don’t buy the first plan you come across. Insurance marketers can be persuasive, so you must hold your ground and stay true to your budget. Do not buy unnecessary coverages and increase your premium price. It is important to look around and compare different options. Read the plans offered by different companies and the conditions they are imposing.
If you come across a plan that comes with minimum legal requirements, you can go after that. Compare the premium offered by different market players, and choose accordingly. Before finalizing a plan, talk to your home warranty company about the services they offer and the contractors they have at their disposal.