Over the course of your home ownership, you may come across some confusing terminology and processes. While a real estate agent can answer many questions for you, one area you’ll want to learn about on your own (if you haven’t already) is home warranties.
A home warranty is not actually a warranty; it’s more like an insurance policy. A home warranty covers your appliances and systems (plumbing, electrical) in case they break down or need repairs. It serves as a supplement to your homeowner’s insurance, which covers loss or damages caused by events like fire or weather damage.
But while they may sound similar, there are important differences between the two policies that are critical to understand. That’s especially true if you purchased your new construction home with a builder’s warranty included in the price of the house — typically lasting anywhere from six months to ten years depending on the builder’s policy and state regulations.
It’s wise to find out exactly what items are covered under any warranty BEFORE they expire, so that you’ll have time to get problems repaired before taking care of them yourself becomes necessary.
What does that mean for you?
Your home warranty came through for you in a big way. Now that your home warranty is ending, you’re probably wondering what comes next. If you plan on staying in your home, or selling it in the near future, take these steps to ensure you’re prepared for what comes next:- Get a home inspection.
- Put money aside for repairs and maintenance.
- Check your insurance coverage — and check back periodically to make sure coverage hasn’t changed or been reduced without notice.
- Keep your appliances safe and secure to avoid damage from accidental drops or overloading electrical circuits.
