Deep dive into home warranty packages
Loading...Loading...Loading...Loading...Costly repairs can be a homeowner’s biggest worry. Real estate investors are especially mindful of this, as unforeseen issues can increase your operating expenses and chip away at your returns. We have warranties that protect us from unexpected problems for our phones, cars, and computers, but what about our homes? In fact, there is such a thing - a home warranty offers protection for your home systems and appliances and it can provide peace of mind whether you are buying a home that is old or new, and primary or investment.
What exactly is a home warranty
A home warranty is a yearly service contract that covers your home’s systems and appliances. The warranty will pay out for the repair or replacement of these due to failure from any age-related problems.
Don’t mistake a home warranty for homeowners’ insurance, which offers liability protection and coverage on your home's structure and belongings in the event of a fire, theft, storm, or accident. A home warranty, on the other hand, will cover your systems and appliances from wear, tear, and age - no disasters necessary.
What is covered
Systems
Appliances
Optional add-on coverage: pool and spa, septic pump, re-key
What is not covered
Home warranties do not cover anything that has to do with the structure of the home: foundation, walls, finishes, flooring, paint, windows, solar panels, and doors. For all of this, there is homeowner’s insurance.
How does it work?
The subject of a home warranty will come up during the sale and purchase of a home. The warranty provides reassurance to the home buyer and this incentive benefits the seller, which is why it has become increasingly common to see the seller pay for the warranty. Although, this will differ across transactions.
If your appliance or home system breaks down, a licensed, pre-screened service provider will assess the issue and determine whether a repair or replacement is appropriate. You then pay only a small service fee and the rest is covered.
It is important to know and follow the rules to ensure that the provider pays out in case of an appliance or systems failure. Certain things can fall outside of the home warranty coverage policy and lead to denial of payment, such as: improper maintenance, improper installation, unusual wear and tear, and code violations.
The benefits of working with Doorvest
A home warranty is a great way to feel confident with added protection should appliances or systems fail and/or need service. Many investors and home buyers are not prepared to spend thousands of dollars immediately after having purchased a home, and a warranty will be a safety net against expensive, unexpected repairs.
Our strategy at Doorvest is to minimize any potential maintenance issues from the get-go – this is why we do extensive renovations including the replacement of major components, systems, and appliances. Our proactive approach reduces the likelihood of deferred maintenance.