Home warranties are a common addition to any home purchase, and whether you were planning on purchasing one or not, oftentimes you are left wondering if it’s truly worth it. While there are multiple different types of home warranties, the most common warranty that is purchased during home sales is generally a $500 plan. This plan has a $500 annual premium and in some cases, could end up saving you thousands.
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So, what exactly does a $500 home warranty cover? While each company may differ slightly, a general rule of thumb is that the warranty will cover the basics within your home this could include things such as:
- Air conditioning
- Water Heater
- Garbage Disposal
- Smoke Detectors
- Central Vacuums
- Trash Compactor
- Garage Door Opener
- Oven, Stove and Range
- Washing Machine
While these basics are generally covered, many companies also allow you to add on additional items without paying an extra premium. With many homes now including more tech many people are choosing to upgrade or add to their current home warranty if some of the items aren’t allowed in the basic $500 plan.
As with the basic coverages, these common add-ons can also vary pending on each company. A few common additions could include:
- Septic Tanks
- Re-Key Service
- Roof Leaks
- Swimming Pools or Hot Tubs
- Guest Units (such as a mother-in-law or pool house)
- Well Pumps
Oftentimes both homeowners as well as buyers feel as if home warranties aren’t worth the additional price tag tacked onto the sale, however, when you actually sit down and look at the items that most home warranties cover, it is easy to see why they are such a common purchase among both homeowners as well as buyers. If even just one of these appliances or systems goes out, requires maintenance or repair, you could easily end up spending hundreds, making a home warranty look rather appealing.
It is just as important to ensure you understand the things that home warranties do not cove as this helps eliminate any misunderstanding or surprise bills that you might have thought were covered by your warranty. Generally, home warranties will not cover:
- Pre-existing conditions
- Cosmetic Issues
- Damage from improper maintenance or installation
- Damages to a system or appliances caused by non-residential use or misuse
If you’re currently searching for a new home, are ready to sell your home and need a qualified seller’s agent, or if you have any further questions regarding New York Real Estate, please feel free to contact our office at any time.