When purchasing a home, whether it be pre-existing or new construction, it can be important to have bot a home warranty and a home insurance plan. Did you know that any homeowner can purchase a home warranty plan regardless of how long they have owned their home? This is one of the best ways to protect yourself and your investment if anything were to go wrong. Check out the information on home insurance versus home warranty below to educate yourself on your options.
Homeowners insurance pays for any accidental damages and loss that are caused by fire, lightning strikes, windstorms, and hail. However, damage from earthquakes and floods is typically not covered and would require a separate plan if you wish. The standard home insurance plan also covers the replacement of personal property in case of theft or damage and liability if a person were to get injured in your home or on your property. Your bank usually asks you to obtain a home insurance policy before the mortgage is issued. Make sure to keep in mind that each type of coverage in the policy is subject to a limit and, in most cases, you will have to pay a deductible.
A home warranty is designed to cover the cost of repairs and replacements of larger appliances and crucial systems in your home that may fail or break due to age and wear and tear. This includes but isn’t limited to HVAC, electrical, or plumbing components, kitchen appliances, and your washer and dryer. With a home warranty, you are required to pay premiums year-round, even if you do not use it, and it won’t cover damages if appliances were not maintained properly or if the damage is from a fire or other disaster.
Similar to home insurance, there are many companies to choose from when considering home warranty protection. Be sure to do your research and compare not only rates but also coverage and upgrade options.
At Arrive Real Estate Group, we strongly recommend buyers obtain a home warranty plan for at least the first year they are in their new home. Typically, buyers make a lot of changes to their homes within the first year and no one wants an additional expense if an appliance goes out. If you are thinking about selling your home, you may want to provide a home warranty plan to your buyers as a show of good faith and peace of mind to the buyers that all appliances are properly working. Contact Arrive Real Estate Group with all of your home and real estate questions!
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