When buying real estate, being sure that it is protected right from the beginning is extremely important. This way, you are moving into a home that is not going to suddenly provide you with an array of financial problems. This is why many home buyers choose to have an inspection done, for example in order to negotiate on the home price. If there are problems found, then the savings on the purchase of the home can help pay for any repairs that are needed. Another option would be to add on a home warranty. Here are four things you need to know about doing this:
- The Cost Varies: If you are worried about the cost of a home warranty, you should know that the cost is going to vary depending on the coverage that you want. For example, you can choose a most basic coverage, such as appliance coverage or system coverage and the price can be as low as $30 per month. You can also choose to add on coverage for items such as your swimming pool, in which case the cost will go up just a bit more. You can also change the deductible prices to make the monthly cost more or less.
- A Home Warranty is Only Purchasable at Certain Points: When you own a home, you probably aren't going to be able to purchase a home warranty after a year or so of owning it. You also aren't going to be eligible for a home warranty on a newly purchased home since a warranty should come with your contractor. A home warranty is typically purchasable for existing homes that you are currently purchasing. You can even ask the current homeowner to include a warranty for you before agreeing to purchase the home.
- A Home Warranty Isn't Necessary: Unlike homeowners insurance, a home warranty isn't a necessity when purchasing your home. This decision is up to you, not your mortgage company. However, a home warranty can help you save on the amount of money you need to set aside for emergency funds. You will also know exactly how much you need to save up for emergencies because of the deductible amount on your warranty.
- There are Many Home Warranty Companies: Like homeowners insurance companies, there are also many home warranty companies, which means you should be doing your research just as you would before buying insurance. This way, you get a warranty for the best cost with the right amount of coverage.
When you know these four things about a home warranty, you can be sure that you know whether or not purchasing a warranty is the right choice for you and how to go about it in a way that is going to work.
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