Pros and Cons of a Home Warranty for Your Rental Investment Property
What is a home warranty?
A home warranty is a contract between a homeowner and a home warranty company that provides for discounted repair and replacement services on a home's major components such as the furnace, plumbing, stand-alone freezers, water heater, dishwasher, oven, cooktop, garage door opener, HVAC and even the pool. The home warranty is designed to protect your homes appliances and systems form breakdown caused by normal wear and tear. It covers service, repair and replacement of the major home appliances and systems that are covered in the homeowner warranty.
Pros of a home warranty
You get peace of mind
It is so expensive to install some of the home appliances and electrical systems such as the air conditioning and water heaters. A home warranty is a great form of security against unexpected and expensive home repairs.
Convenience
In case you need any repairs done, you do not need to worry about finding a trustworthy technician to do it as the home warranty company provides you with their trusted technician.
Savings on the cost
It is relatively cheaper to do repairs with a home warranty as compared to an individual homeowner who is likely to be charged a lot more.
Transferability
In case you sell your property and you have a home warranty, it is possible to transfer your home warranty to the new homeowner. You will be charges a nominal transfer fee according to your home warranty company.
Cons of home warranties
Longer wait times
The wait time can be a little bit longer in case you need a quick fix and you place your claim via phone. It is however possible to put you claim online and at your own convenience.
Limited coverage
Home warranties do not cover pre-existing conditions, animal infestations or recalled products. This however varies from one home warranty company to another.
High cost
Some home owner companies charge a lot of money to new homeowners seeking coverage for sign up and replacement of some appliances in case of pre-existing conditions.
Tips for finding the right home warranty
Before selecting a home warranty, consider the type of coverage offered by the company, the company's inclusions and exclusions, cost of the plan technicians used by the company and the company's reviews from their clients and customers.
Contact us for guidance and tips to help you select your home warranty company.
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