Homeowners Warranty Insurance - Is it Worth Buying?
Whether you're buying a home or selling one, a homeowner's warranty,
also known as a HOW is something that can be beneficial in a number
of ways. By understanding what homeowners warranty insurance is
and how it can protect you, you'll be able to see why this valuable
type of insurance is right for you!
Essentially, a homeowner's warranty is can considered an extended
service contract. It ensures that any of the mechanical systems
or appliances that are working on the day of the closing will continue
to work for a certain amount of time afterwards. Typically, a homeowner's
warranty lasts for a year after the closing, but many contracts
have the ability to be renewed.
Homeowner's warranties have grown in popularity until they are
actually advertised on real estate ads. They are an excellent marketing
tool as they are essentially a show of good faith. A homeowner's
warranty essentially states that the buyers are confident of the
soundness of their property and that they are willing to put down
money to prove it. For a comparatively small amount of money, the
seller can make a great deal of a prospective buyer's doubt vanish.
With a variety of plans to choose from, you can usually find one
that suits your situation. For instance, a very basic plan starts
at around $300, covers most mechanical problems that might show
up as well as the major appliances.
While nothing will compare with a thorough inspection from a trained
professional, a homeowner's warranty is a wonderful way for a buyer
to be comfortable with the amount of money that he or she is spending
on a new home. Replacing appliances or dealing with a furnace that
suddenly cuts out in the middle of winter can be both expensive
and inconvenient, and if a new homeowner can realize that these
events will be handled, than that will make them a lot more comfortable.
This adaptive and popular type of insurance was developed by the
Home Owner's Warranty Corporation, essentially to protect the buyer
from defects that might have be known to anyone at the time of
closing. Even skilled home inspectors can miss key weaknesses in
a property. In order to prevent recriminations and possible lawsuits,
a homeowner's warranty gives both parties the knowledge that the
problems will be taken care of. It makes a third party responsible
for the damages and everyone can breathe a sigh of relief.
The age of the house is one of the chief factors for deciding
if a homeowner's warranty is something you want to invest in as
the seller of the property. You also need home owners insurance remember if you choose to stay. In this case, a good homeowner's warranty
can mean the difference between a sale and a pass. Older houses
are charming and full of character, but they often have a host
of problems that accrue with time. These problems can be laid to
rest for the prospective buyer with a homeowner's warranty.
If you are buyer, something you can as for a homeowner's warranty
to be written into the contract. This can show that you are serious
about the deal as well as giving you all the benefits stated above.
While it might seem that a homeowner's insurance is not an important
part of real estate sale, you can see that it can influence everything
from the initial walk-through to forestalling litigation! This
document can save you a lot in terms of time and money.