What is a Home Warranty?
Buying a home for the first time is a big expense and, just like with any big purchase, brings a certain amount of risk. A home warranty can help eliminate that risk. Here’s why your first time clients need a home warranty.
Defining Home Warranties
Home warranties can be confusing for first time home buyers who are trying to differentiate Home System and Appliance Service Agreements, more commonly known as a home warranty, from home insurance and all the other complex financial instruments that come into play during a home sale. In its most basic form, a home systems and appliances Service Agreement helps homeowners reduce the overall cost of owning a home by protecting them against unexpected systems and appliances breakdowns.
Explaining What a Home Warranty Covers
By pointing out specifically which systems and appliances are covered under a home warranty, you can better help first time home buyers understand their protection. A systems and appliances Service Agreement covers major systems and appliances that malfunction or break from normal wear and tear. These expensive to repair items include air conditioning and heating units, electrical wiring, refrigerators, ovens, dishwashers and garage door openers.
By contrast, homeowner’s insurance only covers loss from incidents like fire, storms or vandalism.
Explaining How a Home Warranty Works
First time home buyers are being confronted by a wide variety of legal and financial issues for the first time, so it’s important to stress how easy a home warranty is by comparison. When a covered item in the new home breaks down, the homeowners simply log their service request online or call 800.775.4736. Their request will be reviewed and a contractor will be scheduled. When the contractor comes to the home, home buyers will pay a flat service fee that varies by state. The contractor will make eligible repairs and bill the warranty provider for the work.
Why New Home Buyers Need a Home Warranty
One of the most critical issues surrounding home warranties and their value in a home sale, is the availability of funds for repairs. First time home buyers are likely to have sunk a substantial amount of their available capital into purchasing the home in the first place, let alone covering closing costs, home insurance, utility bills and other fundamental costs of owning a home. A home warranty helps provide peace of mind so that first time homeowners know if that if something critical breaks, they won’t have to lay out a substantial amount of money to fix something crucial, such as a hot water heater or refrigerator.
2-10 HBW offers the most comprehensive Home Warranty coverage for homeowners. Let us help you protect your home.