When purchasing a home, buyers often hear about home warranties, but many aren’t sure what exactly they cover or whether they’re necessary. In this post, we’ll answer your question, what is a home warranty, who benefits from one, and if it’s worth considering for your real estate investment.

What Is A Home Warranty?

A home warranty is a service contract that helps homeowners cover the repair or replacement of specific home systems and appliances that may fail due to normal wear and tear. These can include major systems such as electrical, plumbing, HVAC, and kitchen appliances.

Home warranties typically last for a year, after which you can renew the policy if desired. The purpose is to protect you from unexpected repair costs during homeownership.

What Does a Home Warranty Cover?

The level of coverage and the appliances and systems covered is up to you. Below is a list of what basic coverage might include, but you’ll always want to chck the warranty specifics.

Major kitchen appliances (oven, refrigerator, dishwasher)
HVAC systems (heating, ventilation, and air conditioning)
Plumbing systems
Electrical systems
Water heaters
Washer and dryer

Some home warranty companies also offer optional coverage for things like pools, spas, and even ceiling fans and garage door openers.

It’s important to note that a home warranty doesn’t cover structural issues, mold, pest damage, or pre-existing conditions.

Who Needs A Home Warranty?

Wondering who should consider getting a home warranty? The answer depends on the situation. Here are a few types of homeowners who might benefit:

First-time buyers: First-time homeowners may appreciate the extra peace of mind, especially if they’re unfamiliar with the costs of home maintenance.
Sellers: Offering a home warranty during the sale can make your property more appealing to potential buyers, giving them confidence that they won’t face hefty repair bills right after closing.
Owners of older homes: If your home’s systems and appliances are reaching the end of their lifespan, a home warranty can save you money on potential repairs.

How Much Does a Home Warranty Cost?

According to MarketWatch, a home warranty in Florida averages about $600 annually, but the costs depends on the level of coverage you choose and your exact location.

Most home warranty providers offer monthly payments, which can be ideal for a new homeowner.

There is also typically a service call fee of $50 to $150 each time you need a repair or replacement.

Home Warranty vs. Home Insurance: What's the Difference?

It’s important not to confuse a home warranty with home insurance. While both offer protection, they cover very different things. Home insurance protects you against damages from events like fires, hurricanes, or theft, whereas a home warranty specifically covers system and appliance breakdowns due to normal wear and tear.

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Are There Any Downsides to Home Warranties?

While home warranties can be a helpful safety net, they do come with potential drawbacks. For instance, there can be delays in service depending on the warranty provider. Additionally, some warranty companies require you to use their preferred service providers. This could be a problem if you have your own list of trusted service providers.

Most of these potential downsides can be avoided with a little bit of research. By choosing the right warranty company, you can actually have the coverage you want, including the option to choose your preferred service providers.

What Is A Home Warranty & Do You Need One?

Hope I’ve answered the question, what is a home warranty, and how it can be a valuable tool in real estate transactions.

For the seller, offering a home warranty can make your property more attractive to buyers by providing an added layer of security, which can help ease concerns about potential repairs. It’s a great way to stand out among similar listings and reduce the fear of post-sale regrets for the buyer.

If you’re looking to buy or sell a home in SWFL, give me a call!