Being a homeowner is a rewarding experience. It gives people a place to truly call their own. They know those monthly mortgage payments are going toward the end goal of, at some point down the road, not having to keep paying out that money each month. In contrast, renting means making monthly payments indefinitely without ever owning the property. At the same time, purchasing a home means being able to make changes to the property to increase its value and make it more functional and personalized.
From a Different Perspective
On the other hand, owning a home also comes with certain challenges. When they’re renting, people don’t generally have to worry about the costs of repairs, replacing certain components of the home, and other major expenses. Those fall on the shoulders of the actual property owner. While homeowner’s insurance offers a hedge against some of those costs, more help is often required to cover all the outlays that come from unexpected damages and malfunctions.
Finding a Safety Net
For many homeowners, added protection comes in the form of a home warranty plan from companies like First American Home Warranty. Home warranties are designed to bridge the gap that’s often left behind by homeowner’s insurance. Insurance generally covers damage from fires, some types of water damage, storms, and vandalism. If something goes wrong outside the parameters of the policy, the costs of making it right again fall on the homeowner.
With a home warranty in place, those expenses may not be solely the responsibility of the homeowner. Major appliances, which aren’t covered under a homeowner’s insurance policy, can be covered by a home warranty. HVAC systems are also covered, in most cases.
Items outside the actual house, such as storage sheds and swimming pools, may not be covered under a standard warranty. Additional coverage can be purchased for those elements, though, according to realtimecampaign.com. Of course, additional coverage will cost more than a basic warranty.
Is a Home Warranty Necessary?
Homeowners should consider the following article: “Do You Really Need A Home Warranty Plan? Here’s What To Consider.” Not all types of damages and malfunctions are covered by an insurance policy.
The insurance deductible is another factor to keep in mind. That deductible has to be paid before the insurance policy will cover repairs or replacements, but the cost of those repairs or replacements may be lower than the cost of the deductible. Still, the expenses may exceed the amount of extra money one has to spend. With a warranty, it might just soften the blow.
Choosing a Home Warranty
Having a savings account set aside for emergency repairs and other expenses may lower the need for a home warranty. Most people don’t have an emergency fund, though. While a home warranty comes with certain expenses, many homeowners are quick to point out that the cost of not having a warranty can be far greater. Home warranties don’t cover all expenses, but they can provide a helpful safety net by stepping in where most homeowner’s insurance policies fall short.