Maybe you’re buying a home, or you’ve been living there for a while and you’re wondering about the right time to buy a home warranty. You may also be thinking about how to verify which ones are the best home warranty contracts. The short answer is that you can purchase a home warranty plan at any time, but the best time to get one is as soon as possible from a reputable company.
Why You Need a Home Warranty
A home warranty is not the same as home insurance. Instead, think of a home warranty as supplemental coverage that can complement your home insurance. For example, if a pipe breaks and floods your kitchen, you can file a claim with your home insurance for damages incurred due to the flooding. You would contact the home warranty company to fix the pipes.
Home warranties take a much smaller bite out of your wallet than having to cover these costs on your own. With a home warranty plan, you only need to pay the service fee while the warranty takes care of the remaining balance. Since you never know when disaster will strike, having a home warranty to lean on when it does is a huge stress relief.
The Best Time to Buy
While you can buy a home warranty at any time, it’s best to get one sooner than later. If you’re buying a home, that’s the best time because you should be well outside of the waiting period by the time you get into your home. Most home warranties have a 30-60 day waiting period before you can file a claim, and it can take at least that long to close on a home.
If you’re the home seller, it’s a good idea to purchase a warranty and include it in the price of your home. A home warranty looks good to buyers, and it can help you sell your home faster at a higher price point. Since a home warranty is good for a year, the buyers can rest assured that their home is covered for at least that time. When the time comes to renew, they can decide if they want to continue.
New Construction Warranties
New homes and their appliances are all under manufacturer warranties. Each one has varying coverage and lengths of time. You don’t necessarily want to buy a home warranty plan if you are already covered. Most builders also include pipes or electrical problems within the first year, so you don’t necessarily need to add that coverage.
Instead, wait until the new construction warranties expire. Check into all of them to find out when that will be and plan your home warranty purchase around that time. If you can buy a new home warranty plan approximately 30 days before your original new construction warranty expires, your coverage can continue without any gaps.
A Few Last Words on Home Warranties
Buying a home warranty plan is an excellent idea when you purchase an older home. If you currently own a home where all of your warranties have expired, it’s also a fantastic option to cover the problems that will eventually come up. With a modest monthly fee, the expense is well worth the coverage and peace of mind that you’ll have when your washer or dryer stops working in the middle of doing a load of laundry. If you know you have everything covered, you’ll sleep better at night and appreciate not having to pay monstrous prices to replace otherwise expensive household appliances.