The Pros & Cons Of Purchasing A Home Warranty

February 10 is National Home Warranty Day! When the washing machine breaks down, or the HVAC system stops working, the cost of repair or replacement could be costly. Our homes are filled with complex and vital appliances that over time can and do wear out. A home warranty, unlike home owner's insurance, covers repairs or replacements of these items that break down due to normal wear and tear.

Home warranties often coincide with real estate transactions, as new homeowners want peace of mind that their appliances and systems are covered in their new investment, and sellers want to assure potential buyers that their home will be taken care of. If you are considering adding a home warranty to the purchase or sale of your home in Colorado Springs, consider these pros and cons to decide if it's a good idea to your home.

How Home Warranties Work

While each home warranty is different, typically they cover appliances in the home if they need repair. An agreement with the company will state exactly what appliances or systems are covered. Typically, home repair expenses without a warrant could cost hundred or even thousands of dollars for each repair needed. However, with a home warranty, there is a flat service call fee for repairs. If a covered appliance or system breaks down, you'll need to call or email your warranty company for a claim, and they'll send out a service technician to repair or replace your equipment.

The Pros Of Home Warranties

- Peace of Mind. One of the biggest benefits of a home warranty is the peace of mind it gives homeowners. A leaky toilet or a broken A/C unit are no longer a crisis with a home warranty, as a fix is just a simple phone call away. In addition, homeowners don't have to worry about the costly repairs that might have come with these broken appliances or systems, as they are most likely covered under your warranty.

- An Easy Fix. With a home warranty, you only need to remember one phone number or email for any repair. You don't need to spend time researching reputable repairs companies, as your home warranty has already done the research for you. You also don't have to wait until business hours to start your repair, as some warranty companies have online service claims or 24/7 phone service. All you need to do is call/email the warranty company and wait for the service truck to arrive.

- Avoid The Costly Repairs. Serious issues like plumbing system breakdowns or broken HVAC systems can cost a pretty penny. For homeowners with an emergency savings account, the cost of these repairs or replacements could be devasting and throw them into major debt. With a home warranty, homeowners can rest easy knowing that if anything major happens to their appliances or systems, they won't have to go into debt to fix it.

The Cons of Home Warranties

- Not Needed. If your home is less than 5 years old or is very well taken cared for, you may find a home warranty unnecessary. While avoiding home repairs for years is a good thing, it may feel like the money you spent on a home warranty has been wasted.

- Doesn't Cover Everything. Pre-existing conditions, such as poorly maintained systems or broken fixtures, aren't covered under home warranties. In addition, important systems, such as A/C units, refrigerators or septic systems, may not be included in basic home warranty agreements and you may have to pay extra if you want these important items covered. While repairs are covered by these warranties, you are expected to take good care of your appliances and systems, and regular maintenance is not included in home warranties. If you don't keep up with proper maintenance, your claims may be denied, as the warranty company can't be liable for equipment that has not been taken care of.

- You Can't Choose Service Provider. Home warranties choose who comes to repair the item you claim, and you don't have the option to pick and choose among different providers. You will simply be sent the company that the home warranty provider trusts to do the job correctly. That means that your favorite repairman may be out.

Home warranties definitely have some great benefits for home buyers and sellers alike, however, there are some cons that need to be considered. Luckily, your trusted real estate team in Colorado Springs can help you weigh the options of a home warranty. If you are needing help buying or selling property in Colorado Springs, contact The Platinum Group, REALTORS at 719-536-4444.

The Platinum Group, Realtors The First Choice in Real Estate

Visit our website: www.PlatinumHomeSales.com

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6760 Corporate Drive, Ste 300

Colorado Springs, CO 80906

(719) 536-4444