Older homes have their challenges compared to newer homes. Having a home warranty plan can protect you from unforeseen issues. Here’s why and how it can help.
Buying a Home Warranty for an Older Home
Home warranty plans can be purchased at any time, not just when you first buy the home. If you’ve been in your house for years or you buy an older home, you can choose to buy a home warranty plan whenever you want.
If you’re a new home buyer, you should always ask the seller if a home warranty plan can be included in the sale. Many home warranty plans require a coverage waiting period, so if you can get it as part of the home sale, you avoid that waiting period.
On the other hand, if you purchase a home warranty plan later, you can expect a 30-60 day waiting period, depending on the policy provider. The best home warranty companies will give you that information upfront so you know what to expect. Not having to deal with a waiting period is excellent in case something breaks as soon as you get into your new-to-you older home.
Protect Yourself From the Unexpected
Having a home warranty plan will protect you from unexpected repairs. Major appliances like your water heater or refrigerator can be replaced if a home warranty plan covers your home. Being able to replace these unexpected costs without going into debt makes them much easier to handle when they happen.
A predictable monthly expense is a lot easier to deal with, but there are limits here, too. This is where the waiting period comes in and why it’s a good idea to have it included with the purchase of a new home. Certain appliances have to be approved by the home warranty provider. If they are not, then you need to replace them before your home warranty plan is applicable.
Once everything is squared away, you call your provider for assistance. They will connect you with qualified professionals. All you pay is a service fee, and the home warranty covers the remainder of the expense. Knowing that you have this home warranty to fall back on when something happens will give you peace of mind.
Home Warranty Plans Are Worth It
You can expect a home warranty plan to range between a few hundred dollars to close to a couple of thousand dollars. The cost of your warranty depends on the coverage you want and the value of your home. You have the option of system, appliance, or combination plans to choose from. System plans cover things like electrical and plumbing, while appliance plans cover major things like the dishwasher or stove. Combination plans cover everything.
Service calls are an additional fee, but it is a nominal fee that typically isn’t more than about a hundred dollars. With all of that, in total you’ll pay an annual premium plus the cost of any professional service you receive. Compared to the cost of replacing that refrigerator breaking down or the dryer dying in the middle of a load, a home warranty plan is entirely worth the expense.
The only possible downside is that the home warranty plan may have a coverage limit in a given year. To know what is and isn’t covered, you’ll have to talk with the provider. If you have a year where everything breaks, there’s a chance it won’t all be covered, so know your limits.
The Bottom Line
Be careful in selecting your home warranty plan provider if you have a choice in the matter. Research reviews, but don’t rely on the ones you see on a provider’s website. They always put the best ones out there, so you’ll want to look elsewhere for honest feedback.
Always consider buying a home warranty plan for an older home. If it’s a part of a home purchase, that’s easier for you. If it’s not, look into buying one on your own so you’ll have that extra peace of mind. The unexpected always happens at the most inopportune times, so be prepared for when it happens will make the whole experience easier to handle. When your smart fridge stops working suddenly, you’ll be glad that you have that home warranty plan to rely on instead of having to replace it on your own.