 |
Buying New Construction, Why Home Warranties are Essential
Author: Stephanie Larkin  | Posted: 04-05-2008 | Comments: 0 | Views: 3 | Rating: (128)  (?) 
What is a Home Warranty?
A home warranty is a policy that is used to pay for common, everyday repairs to things that can go wrong in your home. For example, a home warranty will cover the cost of repairing a central cooling system or a roof that develops a leak. A home warranty is not an insurance policy, rather a way to budget for the expenses of normal repairs.
When you purchase a home warranty, you will pay an annual premium. This may be due in one lump sum, or broken down into quarterly or monthly payments. This is the money that establishes your warranty, and guarantees coverage. When something breaks in your home, and you need to file a claim, you will be responsible for a service charge. The service charge is a predetermined amount, usually between 30 and 100 dollars. This covers the cost of repairs. These are the only two expenses involved in home repairs when you have a home warranty.
When something goes wrong in your home, you file a claim for service. You call the phone number of the home warranty company, and explain the situation. They will then send someone out to complete the repairs. The home warranty company does not have repairmen, but has established relationships with various repair people in the area that they cover. It is important to ask, before you buy a home warranty, whether the company has repair people in your area.
Why Should I Consider a Home Warranty When I Purchase a New Construction?
No one can argue that moving into a newly constructed home is a wonderful luxury. With the smell of new drywall, the sleek countertops and spotless floors, it is easy to feel like you will never have to do any repairs again. Of course, you know that this is not true, it will not be long before the first problem develops, the heating doesn't kick on in the fall, or your dishwasher stops getting dishes clean. These problems are more stressful because they are coupled with a mortgage payment.
A home warranty is the perfect solution for a tight budget. Home warranties for new constructions are very affordable, and covering your home now ensures that you can budget effectively for whatever problems develop down the road. If you have a current home warranty, you know that you will never be blindsided by the cost of home repairs.
Is a Home Warranty a Waste of Money When Everything is New?
The traditional home warranty must be taken out when the home is new. Some companies are now writing plans for older homes, but the policies are more expensive and may have limitations or exclusions that make them not the best deal. A home warranty taken out on a new construction, and kept current, is the best way to get your money's worth. While many things, like new appliances, may go a decade without any trouble, home warranties also cover the problems that crop up occasionally in a new construction, including leaky pipes and minor electrical problems. Some home warranty plans will also cover the cost of maintenance. What a home warranty will not cover is the cost of repairs due to improper installation or excessive wear. This means that whether or not maintenance is covered, it is important to stay current on your maintenance and make sure that all installations are properly installed, to avoid voiding your warranty.
Additional Benefits of Home Warranties
When choosing a home warranty company, shop carefully. To maintain the benefits of a home warranty, you must start the protection when your home is complete, and continue it uninterrupted. While some home warranty companies are beginning to add policies that allow you to pick up a policy at any time, traditional home warranties are coupled with the purchase of a new home.
It is important to purchase a home warranty that is transferable. Very few of us will live in one house for the rest of our lives, with people moving an average of every five years. When it comes time to sell your home, real estate agents have found that the homes that have home warranties sell much faster than the equivalent homes without these warranties. To get this benefit, the home warranty must be transferable. If not, when you move, the home warranty coverage ceases.
Rate this Article:
Current: 0 / 5 stars - 0 vote(s).
Article Source: http://www.articlesbase.com/remodeling-articles/buying-new-construction-why-home-warranties-are-essential-403326.html
About the Author:Stephanie Larkin is a freelance writer who writes about large businesses for home owners such as Old Republic Home Protection and American Home Shield
|
Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free! |
|
Related Articles
Home Warranties and Pools and Spas
By: Stephanie Larkin | 11/04/2008 | Home Improvement
Before you purchase that new home because you fell in love with a pool or spa on the property, check to see if these are under warranty. Pools and spas provide a lot of entertainment, but they don’t come without a downside to them.
How 13 Seer Can Affect You
By: Stephanie Larkin | 11/04/2008 | Home Improvement
During the decade between 1990 and 2000 energy bills for consumers were reduced by nearly 50 billion dollars, thanks to the new appliance efficiency guidelines. The reduction of carbon emissions due to fossil fuel consumption dropped nearly twp percentage points.
How Best to Advertise a 'for Sale by Owner' Home
By: Stephanie Larkin | 11/04/2008 | Home Improvement
If you've decided you want to market your property without paying a significant portion of the proceeds on your property to a real estate agency, you can do as many homeowners are doing today--selling it under a 'For Sale by Owner' transaction. When you sell as FSBO property, you as the owner, are totally responsible for all aspects of the sales transaction.
Homebuyer Checklist: Ten Things to Do After You Get an Agreement of Sale
By: Stephanie Larkin | 04/05/2008 | Remodeling
An agreement of sale is basically a contract between you (the homebuyer) and the person who currently owns the home. When you get an agreement of sale, it is easy to feel so excited that you sign right away.
Homebuyer Incentives - Tips to Make the Sale
By: Stephanie Larkin | 04/05/2008 | Remodeling
The current real estate market is not ideal for sellers. With few buyers and more homes going on the market every day due to foreclosures, it can by months until you sell your home.
Common Mistakes of First Time Home Buyers
By: Stephanie Larkin | 24/02/2008 | Home Security
Buying your first home is exciting. No more rental payments to a landlord making money for someone else. Instead, you are purchasing your own home and investing in yourself. Money paid to your home mortgage is really investing in your future.
How to Protect yourself When Purchasing a Home
By: Stephanie Larkin | 24/02/2008 | Home Security
When you are purchasing a home, whether it is your first or not, it is important that you protect yourself and your investment. Many people will make sure their appliances have warranties, as well as their vehicles.
Standard Coverage for a Home Warranty-what to Expect
By: Stephanie Larkin | 24/02/2008 | Home Security
Home warranties have been around for years. However, until recently, home warranties were a well kept secret. Today, home warranties are much more common and are steadily rising in popularity.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
What about rapid mortgage pay down programs?
By: UFF Rod | 16-07-2008
Are you using United First Financial's Money Merge Account to help average home buyers pay off their mortgage in 1/2 to 1/3 the time, with little or no lifestyle change? Real Estate Investor Magazine just gave it the Editor's Pick of the Year Award as "head and shoulders above" anything else available. My wife and I started two years ago with 28 years left on our mortgage, and now will have it paid off in less than five years!
www.UFFRod.info or www.UFFRod.com
Rod Skalitzky
Liberty Lake, WA
Where are interest rates headed?
By: Joanie | 16-07-2008
My soclinto5 year ARM is due to adjust in 2 years. It's at 5.25% now and I am uneasy about where interest rates are headed. Would it be wise to refi now for a 30 year fixed?
What is your forecast for the mortgage industry?
By: Eva | 16-07-2008
What is your 3, 6 and 9 month forecast for the mortgage industry? i.e., rates, availability of jumbo financing and stability in the market.
Hi, I have three mortgages, two on my townhouse ...
By: Hank | 15-07-2008
Hi, I have three mortgages, two on my townhouse one being a home equity loan and the other being an adjustable, my single family home has an adjustable as well, I was curious about whether or not if I could get a consolidation loan to alleviate some of these mortgages, or would that be the best solution? The market don't seem to be a sellers market right now so selling my townhouse would not be in my best interest right now, but I really would like to get rid of that home equity loan and the two adjustables.
Foreclosed Homes
By: Patty | 15-07-2008
I have a CD that will be maturing shortly and I am thinking of buying a foreclosed house. I hear that foreclosures are risky. Your opinion on this please.
NACA Loans
By: Beach Bumz | 15-07-2008
I am currently in the housing market as a buyer and was recently told by a co-worker to check out NACA for no down payment home loans. I am looking for an un-biased expert opinion on this subject.
Q&A Powered by: 
More from Stephanie Larkin
Popular Options to Heat Your Home
By: Stephanie Larkin | 08/07/2008 | Tools and Equipment
As the cost of fuel continues to rise, paying attention to the condition of one’s heating system is becoming more important. Homeowners are looking to supplement traditional systems and increase efficiency, and there are many companies offering solutions. However, there is no one-size-fits-all way of reducing the cost of having a toasty home in the winter.
How a Pellet Stove Can Save You Money
By: Stephanie Larkin | 08/07/2008 | Tools and Equipment
With the cost of home heating fuel increasing rapidly, many homeowners have chosen to purchase small stove to heat small areas and decrease the demand on their heater. A pellet stove is one of the most efficient and environmentally friendly stoves for this purpose. They are self-refueling and come in a variety of sizes and attractive finishes.
An Introduction Into Biomass Energy
By: Stephanie Larkin | 08/07/2008 | Tools and Equipment
As fuel prices propel upward around the world and further concerns mount over global warming, many researchers and policy makers are looking toward renewable energy sources. For the most part, power made from natural sources is low-impact because biological material can be quickly restored through natural processes.
Homebuyer Incentives - Tips to Make the Sale
By: Stephanie Larkin | 04/05/2008 | Remodeling
The current real estate market is not ideal for sellers. With few buyers and more homes going on the market every day due to foreclosures, it can by months until you sell your home.
Homebuyer Checklist: Ten Things to Do After You Get an Agreement of Sale
By: Stephanie Larkin | 04/05/2008 | Remodeling
An agreement of sale is basically a contract between you (the homebuyer) and the person who currently owns the home. When you get an agreement of sale, it is easy to feel so excited that you sign right away.
How Best to Advertise a 'for Sale by Owner' Home
By: Stephanie Larkin | 11/04/2008 | Home Improvement
If you've decided you want to market your property without paying a significant portion of the proceeds on your property to a real estate agency, you can do as many homeowners are doing today--selling it under a 'For Sale by Owner' transaction. When you sell as FSBO property, you as the owner, are totally responsible for all aspects of the sales transaction.
How 13 Seer Can Affect You
By: Stephanie Larkin | 11/04/2008 | Home Improvement
During the decade between 1990 and 2000 energy bills for consumers were reduced by nearly 50 billion dollars, thanks to the new appliance efficiency guidelines. The reduction of carbon emissions due to fossil fuel consumption dropped nearly twp percentage points.
Home Warranties and Pools and Spas
By: Stephanie Larkin | 11/04/2008 | Home Improvement
Before you purchase that new home because you fell in love with a pool or spa on the property, check to see if these are under warranty. Pools and spas provide a lot of entertainment, but they don’t come without a downside to them.
|
|
Home Improvement 
