Homeownership provides a pathway towards building wealth and controlling monthly housing expenses with a fixed-rate mortgage. However, homeownership isn't a fairy tale ending free of future plot twists. Appliances fail. Systems break. Life happens. But a home warranty program may protect your wallet from the little goblins lurking to derail your finances with system failures. Let's dive into the magical kingdom of home warranty programs in Central Virginia. In this in-depth guide, we’ll answer these questions:
By the end, you’ll have all the information you need to make an informed decision on what’s best for you. 1. What is a home warranty program?
Different from homeowners’ insurance, a home warranty is a service contract that covers the repair or replacement of major home systems and appliances. Purchased and renewable annually, the warranty contract secures fixes or replacements of covered items like HVAC systems, plumbing, electrical, and kitchen appliances that wear down over time. Programs can be purchased by a current homeowner, buyers purchasing a new home, and even sellers electing for a listing warranty. Home warranties provide homeowners peace of mind and financial protection, especially for older homes or appliances. 2. How is a home warranty different from homeowners’ insurance? Homeowners’ insurance provides financial protection in case of damage to your home or personal property due to events such as fire, theft, or vandalism. Homeowners’ insurance typically provides coverage for the structure of your home, your personal property, liability protection, and additional living expenses if you are unable to live in your home due to a covered event. Typically, a condition of your loan, mortgage lenders require this protection to hedge against unforeseen risk or loss. 3. What systems and appliances does a home warranty program cover? Typical home warranty programs cover a home's internal systems and conveniences such as:
4. What are the benefits of a home warranty program? There are several reasons home warranties may be your Prince Charming.
5. Do you need a home warranty? An elective purchase, a few considerations should go into deciding if a home warranty program is best for you:
6. What providers sell home warranty programs in the greater Richmond area and what do they charge? Several home warranty providers operate in Central Virginia - each with their own pricing and coverage options. Actual quotes vary due to home size, system types and ages, and ages of appliances, but on average, a basic home warranty plan in Virginia can cost between $350 to $500 per year. More comprehensive plans can cost up to $800 or more per year. Some of the top home warranty providers in Virginia include the following and these estimates need to be verified by the provider: 1. Cinch Home Warranty. Local reps make navigating the purchase process easy and rate vary around $500-$700. 2. Choice Home Warranty: Choice Home Warranty offers two main plans in Virginia, with prices starting around $370 per year. They also offer optional add-ons for additional coverage. 3. First American Home Warranty: First American Home Warranty offers several different plans in Virginia, with prices ranging from $300 to $500 per year depending on the level of coverage you choose. 4. Select Home Warranty: Select Home Warranty offers several different plans in Virginia, with prices ranging from $400 to $600 per year depending on the level of coverage you choose. 5. Liberty Home Guard: Liberty Home Guard offers several different plans in Virginia, with prices ranging from $400 to $700 per year depending on the level of coverage you choose. It's important to note that in addition to the annual premium, homeowners may be required to pay a deductible per service visit - typically ranging from $50 to $100. Read the fine print of your contract carefully to ensure you are comparing coverage options, repair limits, and quotes that meet your specific needs. 7. When can a home warranty program be purchased? Many home buyers choose to purchase a home warranty at the time they purchase a property wrapping it in their closing costs. However, you can purchase a home warranty anytime after closing, as long as the systems and appliances you wish to cover are in good working order and have not experienced any pre-existing conditions. 8. How long does it take for a warranty provider to troubleshoot and fix problems? The typical turnaround time for service requests varies depending on several factors, such as the provider you choose, the type of plan you have, and the severity of the problem. In general, most home warranty companies aim to dispatch techs to troubleshoot issues within 24-48 hours. For less urgent problems, such as a malfunctioning refrigerator or dishwasher, the turnaround time may be longer, typically up to 3-5 business days. However, we've seen it take two weeks or more for some providers to troubleshoot. It's important to note that while home warranty companies aim to respond to service requests promptly, there may be delays or complications due to factors outside of their control, such as inclement weather, parts availability, or high demand. Homeowners should always read the fine print of their contracts and understand the company's policies regarding allowable turnaround times before purchasing a home warranty plan. 9. What is the downside to home warranty programs? There are limitations on how far a provider will go to repair or replace covered items. Furthermore, providers may exclude systems or appliances with problematic pasts. As such, some people feel that home warranties can be expensive and may not provide adequate coverage - especially if they didn't read the fine print before purchasing. Others with experience feel the claims process can be slow or frustrating. Homeowners may have to wait several days for a technician to be dispatched and experience delays with repair completion. And in some cases, homeowners assert that the repairs or replacements provided by home warranty companies may be of poor quality or don't fully resolve the problem. Finally, some people may not like home warranties because they feel that they are unnecessary. If you are a homeowner who is handy or has newer appliances and systems already covered through manufacturer or installer warranties, the value simply may not be there. While home warranties provide peace of mind and financial protection for many homeowners, they may not be the right choice for everyone. Carefully assessing the conveniences, cons, cost, coverage, and caps of home warranty plans helps you choose your own adventure with a storybook ending. Never want to miss a post? For more useful real estate tips & tricks, subscribe to our mailing list or contact us with any real estate questions. Authored by: Kat Medaries, REALTOR® MT Realty Advisors of Long & Foster Real Estate Village of Midlothian Sales, 1100 Jefferson Green Circle, Midlothian, VA 23113 Licensed to sell in the Commonwealth of VA | Equal Housing Opportunity For informational purposes only. Not intended as legal, financial or credit counseling advice. Seek the assistance of a professional.
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