A home warranty card is offered to the buyer at the time of purchase, and it acts as a safety net against all unforeseen expenses and repairs that may occur in the future.
It is important to note that a home warranty is not the same as home insurance. A homeowner’s insurance covers major losses due to unfortunate events such as fires, property crimes, and water leakages that severely damage the house.
In contrast, a home warranty is an agreement between the owner and the warranty company and is meant for repairs such as plumbing, HAVC servicing, and electrical services. A home warranty gives the homeowner discounts on these repairs.
It may also cover appliances like the washing machine, the dryer, and the dishwasher. Know the latest news about ICHS Islamabad payment plan 2023
The cost of a home warranty card
The cost of a home warranty card largely depends on the property type, for example, whether it is a condo, a single-family home, or an apartment.
It is also affected by the kind of plan that you decide to go for. The cost does not increase or decrease with time, nor is it affected by the square footage of the house unless it’s more than 4000 square feet.
If you have any particular feature in the place, like a guest house or a gym that is not attached to the main property, that will not be included in the home warranty unless an additional fee is paid.
Along with the fixed yearly fee, the homeowner will also have to pay a service fee every time they call someone for repairs. However, having a home warranty card
does not mean that the homeowner will ever have to pay for any repair. Certain things are not covered in the house warranty, and the cost of the repairs in these cases will have to be paid by the homeowner.
Advantages of having a home warranty
A home warranty is similar to all other contracts as they act as a safety net against most repairs. They are extremely beneficial for people whose income or lifestyle choices do not allow them to save money for emergencies.
A home warranty also takes away the burden of getting the repairs done by the homeowner. They do not have to deal with different contractors or stand and get the work done; instead, all they have to do is call the warranty company. Furthermore, during the sale of the house, presenting the buyer with a home warranty boosts their confidence in the deal.
As buyers, they do not know the condition of the appliances or other features of the house; thus, a home warranty reassures them. This way, the buyer who has just spent so much money on purchasing the house will not have to worry about saving money for any unforeseen repairs.
The home seller usually provides the buyer with a one-year home warranty; however, this does not protect them from any legal actions that the buyer might take against them.
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Disadvantages of a home warranty
The biggest drawback of a house warranty is that it does not cover all the items, and hence the homeowner is still required to pay for some repairs.
A home warranty usually does not cover items that have been damaged due to lack of proper maintenance as they consider it to be negligence of the owner. However, it is hard to define adequate care, which has led to several arguments between the homeowner and the warranty companies.
The warranty companies may exploit this clause and refuse to repair an item by claiming it has not been properly fixed. Moreover, if the previous homeowner had used the appliances, the damage may be because of their negligence and not the current homeowner’s.
Another drawback is that if the house never requires any repairs for a long time, the homeowner would essentially just waste their money. for artwork for your home, you can visit a creative art gallery.
In contrast, if they kept the same amount of money in an emergency fund, they would be earning interest.
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Despite all the drawbacks, a house warranty is way less than the cost of repairs it covers, which makes it beneficial overall.