Many people think that home warranties are reserved for new homes - which home builders provide them for the new homes built in case something goes wrong. However, home warranties have been around for many years and furthermore, they are often used for older homes.
Home warranties are not a new concept, although many people are new to the idea of purchasing a home warranty on an older home. It's true - many of the home warranties are done on new homes that are being built - there's just no guarantee with a new home and everything working out for you. However, older homes have even more issues with not knowing what you're going to get. What looks good on the outside could quickly turn into a money pit. What are you to do when you are buying an older home and you just aren't sure what you're getting yourself into? Purchase a home warranty for your older home.
It is just as simple to purchase a home warranty for an older home that you are purchasing as it is for a new one. In fact, many sellers are offering home warranties as a selling feature on the house they are selling. If the home you are buying doesn't have a home warranty, you can purchase one yourself.
Home warranties on newer homes are less expensive than those on older homes, simply because the chance of something 'going wrong' is much less likely with a newly built home. With older homes, there's always the chance that the water heater or furnace will give out and need to be replaced, or that the appliances will need to be repaired. Of course, there are major systems in the home, such as plumbing and electrical that could also need to be repaired or replaced. The costs of labor and parts for any of the major systems in your home could be quite costly. These are the chief reasons why having a home warranty on an older home is more expensive than on a new home, and why it is also a good idea to have a home warranty when you are purchasing an older home.
Purchasing an older home is often a gamble - you've likely seen or heard of the movie "The Money Pit" - well, that kind of thing (houses falling apart at the seams after you move in) happen every single day. You really have no idea what you are purchasing with an older home. Even having an inspection done on the home is no guarantee - an inspection can't necessarily tell you that the water heater will give up the ghost completely in three months' time or that the fridge will need to be replaced in six months.
There are many reasons why you should have a home warranty - protection for yourself and your family, and of course, your finances is the main reason. You have to look at the fact that a home warranty will cover any major repairs that need to be done and in many cases, replace your major appliances if needed through the term of your home warranty. This could mean coverage for thousands, or tens of thousands of dollars of repairs that may need to be done to your home. The real question is can you afford NOT to have a home warranty on an older home purchase? Most likely the answer is no - it's usually in your best interest to purchase the home warranty when you purchase the home.
Home warranties when purchased by the buyer are usually renewable after the original term (usually a one year term) has passed. If the seller is offering the home warranty, most often it is non-renewable when the term is up. Either way, the protection offered to you by a home warranty is paramount and can save you quite a bit of money should something major need to be replaced.
When you are shopping for a home warranty, it's best to do some research and ensure you are getting the best home warranty for the best price. Each home warranty is different - they vary from company to company and state to state. Be sure to find out what your home warranty will cover and what it will not cover and any provisions on the coverage that are present in the contract. Read the contract thoroughly to be sure you understand what is and isn't covered and all the provisions allotted for in the contract. If you aren't sure on some point or another, ask the agent selling you the home warranty policy.
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