Raleigh Real Estate Answers – Should a Raleigh home buyer purchase a home warranty?
For most people that are buying North Carolina real estate, whether it is a single family Raleigh home, a townhome or even a condo, the home purchase is one of the biggest investments they will make. Thus it makes sense to protect that investment and most people do this by buying homeowners insurance to cover losses from fire, severe weather, etc.
Did you know that there are items that are not covered by the home owner’s hazard insurance policy? These include the major systems and appliances in the home and an unexpected breakdown can present a challenge to the budget of most home owners. A home warranty is a service contract that usually can be renewed annually that covers the repair or even replacement of the home’s systems and appliances.
Recently someone purchasing Raleigh real estate asked me, “I am planning on having a home inspection performed; do I still need a home warranty?”
According to the statistics in the 2004 Marshall & Swift report “Home Repair and Remodeling”, there is a 68% chance that a major system or appliance will break down in the first year after a home purchase. It is important to have a home inspection performed, but the home inspection does not provide insurance or a guarantee on any of the systems or equipment. A home warranty can provide an extra level of comfort to the homebuyer and help avoid the aggravation of home repair.
What types of things are covered by a home warranty? Since there are different levels of coverage between home warranty companies and most offer different amounts of coverage, it is important to obtain information from a number of companies to get the best deal. Most home warranty plans cover things like air conditioning and heating systems, plumbing and electrical systems, the hot water heater, the range, the garbage disposal, ceiling fans, and the dishwasher. Most plans can be upgraded to include the refrigerator, washer and dryer, garage door opener, and even pools and spas.
As always, feel free to contact the Marti Hampton team for answers to your questions on home warranties or other Raleigh real estate questions.