When you’ve decided to purchase a home, you’ll find that there are many different things that you’ll need to do throughout the home buying process. A few of the many steps that need to be taken during this process include getting pre-approved for a loan, finding the best real estate agent to work with, shopping around for the ideal home, and obtaining inspections and appraisals for the property in question.
When you’ve found the right home at a good price, there are a variety of things that you should do once you’ve moved in. For instance, you’ll definitely want to enhance the security in your home by using secure locks and possibly by obtaining a security system that includes alarms and video capture technology.
Many new homeowners also enjoy sprucing up the interior design of their home, which is something that will allow you to tailor the entire look of the property to your personality and exact specifications. There are numerous interior design styles that you can select from, which extend from more modern and contemporary styles to traditional and rustic styles.
Another thing you might want to focus on once you’ve moved into your new home is protecting the property and keeping it in good condition. Buying a home is a large investment, which is why it’s recommended that you purchase a residential home protection warranty. There’s always a possibility that an emergency could occur in your household that causes a major appliance to malfunction or stop working properly. The best way to account for these emergencies and avoid needing to make significant repair payments is by obtaining a residential home protection warranty, which offers extensive coverage.
What Is Residential Home Protection Warranty?
A residential home protection warranty is a kind of insurance policy that provides protection in the event of an emergency that affects the systems and appliances in your home. While you will have likely obtained an inspection on the property and understand the condition of the major appliances in your new home, there’s always a chance that one of these major appliances can malfunction for no discernible reason, which isn’t something that you want to deal with in the weeks or months after you’ve closed on the purchase of a home.
This type of policy is particularly important for first-time buyers who’ve never had experience with maintaining a property. This warranty will allow you to avoid needing to pay high repair costs if a major appliance stops working for some reason.
The Costs of Residential Home Protection Warranty
An important component of a residential home protection warranty that you should understand before you purchase one of these policies is how the policy is paid for. The exact payment option you use depends on the company you purchase the policy from. While some companies require customers to make premium payments on a monthly basis, many companies require the premiums to be paid on an annual basis wherein the payment is made before the next year of coverage.
These plans are relatively inexpensive in most cases with premiums that typically range from $300-$600 per year. A deductible will also be included in the policy, which is a small amount that you will need to pay before coverage kicks in. These deductibles usually range from $50-$125 per service call.
Should I Purchase Residential Home Protection Warranty?
The purpose of a home protection warranty is to provide coverage for unexpected and highly expensive repair costs, which can be necessary if a major appliance in your home malfunctions. The main benefit of obtaining one of these policies is that you’ll be able to save a significant amount of money if ever a malfunction occurs.
To understand just how much money you can save, HVAC repairs can range in price from $100-$1,200 depending on the component that requires repair. As a new homeowner, you don’t want to be paying $1,000 in repairs immediately after you’ve purchased the property. These policies are also relatively inexpensive, which means that there’s not much risk in purchasing a warranty. In the event that you sell your home in the future, having a home protection warranty will provide prospective buyers with more peace of mind about purchasing a home from you.
When an appliance in your home malfunctions, you’ll need to contact the home warranty company in question. This company will then verify that you have insurance and make a call to the appropriate service provider. The provider will provide the necessary fix for the problem once an appointment has been made. If the damaged appliance can’t be effectively repaired, a replacement will be provided by your policy.
General Protection from Warranty
All home protection warranties offer general protection that extends to most major appliances in the home. The main appliances that are protected with such a warranty include:
- Air conditioning units
- Furnace/heating systems
- Garbage disposal units
- Water heaters
- Electrical systems
- Oven and range
- Telephone wiring
Each of these appliances and components in the home are essential for a person’s way of life to remain comfortable, which is why this policy can be highly beneficial. Without air conditioning, you won’t be able to properly regulate the temperature in your home. If an electrical system isn’t functioning as it should, one or more areas of your home could be without electricity until you obtain a fix. With this type of coverage, these issues can be solved without much effort or money on your end.
Home Protection for Household Systems
While it’s important that the appliances in your home are protected, you might also want to make sure that the plan you select includes home protection for household systems. These systems are integral for keeping your home in good condition while you live there. The main systems that are covered by a home protection warranty include AC and heating systems, electrical systems, and plumbing systems.
AC and Heating Systems Protection
AC and heating systems can malfunction for any number of reasons. Even a unit that’s only a few years old can stop sending cool air into your home as intended. The main problems with AC and heating systems include low refrigerant, fan issues, thermostat problems, and leaking ducts. If the heat exchanger needs to be replaced altogether, you’re looking at repair costs of anywhere from $500-$1,200.
Instead of paying these costs yourself, cover these expenses with a home protection warranty. All you’ll be required to do is pay a relatively small deductible per service call. This deductible doesn’t change even if the entire AC unit needs to be replaced.
Electrical Systems Protection
The electrical system in your home may not always function properly, which could result in such hazards as an electrical surge or a power outage. If these issues have been caused by a wiring problem, the problem will be covered by your home protection warranty.
Coverage also extends to the switches, panels, and circuit breakers in your home. A wiring repair will usually cost anywhere from $$500-$2,000. With a home protection warranty, the deductible you pay will be at $125 or less, which results in substantial savings that make purchasing a home warranty more than worth it.
Plumbing Systems Protection
Plumbing problems are common in any home. Even if your home is brand new, it’s possible that the equipment used for the plumbing in your home was substandard, which would result in a plumbing problem sooner rather than later. The most common plumbing issues that you need to look out for include leaky pipes, dripping faucets, low water pressure, clogged drains, and water heater damage.
When you obtain a home protection warranty that offers coverage for plumbing systems, any plumbing problem that you experience in your home will be covered with the warranty, which allows for much lower expenses when an issue occurs. For instance, the costs associated with repairing a leaky pipe and detecting the leak in the first place can run as high as $500. These costs are covered in their entirety with a simple service call to your provider.
Provide Coverage for Your Home
If you’ve just moved into a new home or have lived in your home without a warranty for years, provide coverage for your home today by obtaining one of these residential home protection warranties. While there are many reputable companies that offer highly-rated policies, two companies that you might want to consider include American Home shield and Liberty Home Guard.
When taking a look at American Home Shield, they offer three separate plans, which include an appliances plan, a systems plan, and a combo plan. The monthly premium that you’ll be required to pay depends on where you live, which is why you should obtain a free quote before selecting these services. Their appliances plan covers 10 separate appliances like refrigerators, cooktops, and washers. On the other hand, the systems plan will provide coverage for as many as 11 systems throughout the household, which include everything from plumbing and electrical to HVAC systems. The combo plan allows you to cover appliances and systems. Deductibles can range from $75-$125.
As for Liberty Home Guard, they offer plans for less than $1 per day depending on what you want to have covered. Their appliance plans cover nine separate types of appliances and are available for less than $1 per day. Their systems guard plan offers coverage for six essential systems in the home at less than $1 per day.
If you want all of these components to be covered, you can obtain a total home guard plan for $1.50 per day. Optional add-ons are available that will allow you to add coverage for such home items as a second refrigerator, a well pump, a pool, a spa, and gutter cleaning.
Insurance for Peace of Mind
A home protection warranty is among the most important aspects to consider when purchasing a new home. When you purchase such a policy, you’ll be providing coverage for your home that will help to lessen financial risks and ease your mind in the event of an emergency. Without one of these warranties, you leave yourself open to an emergency that could be very costly to repair.
If you’re thinking about buying or selling a home in Tucson, make sure to contact our team of professional real estate agents today. We have the experience and local insight guide you through the entirety of the home buying and selling processes!