What You Need to Know About Purchasing a Home Warranty in Texas

What You Need to Know About Purchasing a Home Warranty in Texas
06/29/2022

What You Need to Know About Purchasing a Home Warranty in Texas

Purchasing a home is a major investment, and for many homebuyers. It’s one of the largest financial commitments they will ever make. When you buy a home, you want to know that you are getting an excellent value. You also want to protect your investment as much as possible. This article highlights some of the primary reasons why buying a home warranty makes sense; for most people who purchase homes. Read on to learn more about this essential purchase; and what you need to know before signing on the dotted line.

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What You Need to Know About Purchasing a Home Warranty in Texas

What Is a Home Warranty?

A home warranty (also known as a home service contract) is an insurance product that protects your home’s major systems and appliances (e.g., air conditioning, heating system, plumbing, refrigerator, etc.) against unexpected breakdowns and certain types of damage. Where an house insurance policy protects the value of your home, a home warranty protects your investment in the appliances and major systems inside your home. People who purchase home warranties are typically those who are buying new homes or are otherwise putting a lot of money into repairs and maintenance for their homes. Most home warranties last for about two to three years, after which you can renew the policy or purchase a new one.

Why You Should Buy a Home Warranty

Home warranties protect your investment in your home. They can also give you peace of mind. Even if your home is brand new, you still need to protect your investment. A home warranty can be an excellent investment for the following reasons. A home warranty will cover repairs, replacement parts, and labor costs associated with covered repairs. If a major system breaks down; a home warranty can save you thousands of dollars in repair costs and contractor bills. A home warranty can also save you time. If your air conditioner or furnace breaks down in the dead of summer or the middle of winter. A home warranty can get it fixed quickly. A home warranty can save you money in other ways, too. For instance, a home warranty can reduce your homeowner’s insurance premiums.

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What You Need to Know About Purchasing a Home Warranty in Texas

Types of Home Warranties

There are many different types of home warranties. Some are more comprehensive than others. There are three primary types of home warranties; each with its own set of benefits and drawbacks. – Basic home warranties provide coverage for appliances and systems like air conditioning, heating, plumbing, and water filtration. They may not cover other home systems and appliances. – Limited home warranties are similar to basic warranties, but are intended for newer homes and homes that are wired with newer wiring. – Whole house home warranties are the most comprehensive warranties available. They cover all major systems in your home, including appliances and plumbing.

How to Choose a Warranty Company

If you decide to purchase a home warranty; you will want to do some research and shop around for the best deal. When you are shopping for a home warranty, there are a few things you should keep in mind. Home warranty companies are not created equally. You want to choose a home warranty that offers the best coverage at the best price. There are a few things to look for when choosing a home warranty company. – Make sure the home warranty company is reputable and financially solvent. You don’t want to buy a warranty from a company that might go out of business and leave you without coverage. First, look at the company’s track record. What is the reputation of the home warranty company among homeowners? How long has the company been in business? Look up the company’s financial information. How much cash does the company have on hand? How much are they making? What are the financials for the home warranty company as compared to other companies?

Are There Any Exceptions?

Not every homeowner’s insurance policy covers home warranty repairs. Some insurers don’t even offer home warranty policies. If you are buying a home warranty, make sure you understand your homeowner’s policy. Does it cover home warranty repairs? If your homeowner’s insurance policy covers home warranty repairs. You will likely have to file a claim with your insurance company; before you can file a claim with the home warranty company. That said, even if your homeowner’s policy covers home warranty repairs, you should buy a home warranty anyway. Home warranties have different coverage than homeowner’s policies. It cover’s certain repairs that homeowner’s policies don’t cover. Home warranties have a lower deductible than homeowner’s policies, too.

Bottom line

Home warranties are an essential purchase for homebuyers. Protects your investment by covering repairs and maintenance. Home warranties are particularly important for homeowners who are purchasing new homes; or who are in other ways putting a lot of money into their homes. Home warranties are not created equally. Make sure you choose a home warranty that best meets your needs at a good price. Investing in a home warranty is one of the best ways to protect your investment; and keep your home running smoothly and efficiently.

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