Home Warranties Explained for Eastern Shore Homeowners
Once you’ve found the home of your dreams with Baldwin REALTORS®, costly repairs are likely far from your mind. Just because appliances and heating and cooling systems are in great condition, however, doesn’t mean a visit from repair techs won’t be in your future. If you’re concerned about the cost of unexpected repairs for your new Mobile or Baldwin County home’s mechanical systems or appliances, a home warranty can provide peace of mind.
Understanding Home Warranties
Home warranties and homeowner’s insurance policies provide financial protection but work in different ways. Homeowner’s insurance covers your home and certain belongings against specific hazards, including damage due to fire, weather conditions, and other disasters, plus theft and liability.
In contrast, homeowner’s insurance will not pay for a flooding dishwasher or nonfunctional HVAC system. A home warranty, on the other hand, will help you manage the cost of repairs. If covered equipment fails, home warranty holders follow a simple process:
- File a service request or submit a claim
- The home warranty company alerts an approved contractor that service is needed
- The contractor will connect with you to schedule an appointment
- He or she will repair the malfunctioning system or appliance
- A bill is sent to the home warranty company
You will pay only the stated service fee in your warranty contract. In general, this cost will be substantially less than the full expense of a service call.
Who is a Good Candidate for a Home Warranty?
In general, home warranties provide coverage for a specified period, most often one year. This makes them a great choice for homeowners with new or near-new appliances and mechanical systems. If something goes wrong, you can rest assured your items will be restored at a minimal cost and continue to provide trusted service for years to come.
Home warranties are also a good investment for anyone concerned about their ability to pay for costly service calls. This is a common concern for first-time homeowners, but also any recent homebuyer with a limited budget. When considering all the other expenses incurred by recent home purchasers, a home warranty is a great way to minimize unexpected expenses and remain more financially comfortable.
Finally, individuals purchasing an older home may benefit from a home warranty. You can rest assured that if aging appliances or HVAC systems fail, the warranty will help you repair them without stretching your budget.
Home Warranty Coverage Options
Home warranties vary from company to company, and you’ll want to carefully research which is right for you. In most cases, homeowners can choose coverage that includes appliances only, mechanical systems only, or comprehensive coverage of both. The cost of home warranties varies, with many options available between $400 and $800 with monthly payments or a one-time investment.
While a home warranty can go a long way in providing protection, some repairs won’t be covered. These typically include:
- Appliances known to be faulty
- Appliances located outside the home
- Previously repaired systems and appliances
- All equipment and appliances covered by a manufacturer’s warranty or your homeowner’s insurance policy
Be sure to determine exactly what is covered when purchasing your home warranty. This way you can avoid unpleasant surprises and unexpected fees.
Learn More about Home Warranties
If you’re concerned about managing expenses in your new home and want to add a layer of confidence to your purchase, a home warranty may be right for you. For more guidance on the home buying process, contact Baldwin REALTORS® today. We’ve helped countless Eastern Shore homeowners purchase the home of their dreams and can offer insight on everything from mortgages and local communities to Mobile and Baldwin County governments. To speak with a representative, call (251) 947–3777 now.