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What You Need to Know about the Standard Home WarrantyGoehring & Morgan•October 28, 2016
Do you know the details of your home warranty?
About 63 percent of Americans own their home, and for many people this will be the most expensive — and emotional — purchase they’ll ever make.
Homeownership can come with many surprises, and the cost of owning a home goes well beyond your monthly mortgage, taxes and insurance. That’s why many homeowners opt for a home warranty, which can help defray some of the costs that you’ll encounter. Here’s what you need to know about the standard home warranty.
What Does a Standard Home Warranty Cover?
You’ve probably heard the story countless times or have friends or family members who’ve experienced it: you buy a new home after a thorough inspection and a smooth closing, only to have things malfunction within weeks of your move-in. First the dishwasher breaks. Next, something’s wrong with the furnace. The repairs add an additional expense onto what was already a pricey purchase.
That’s where a home warranty comes in. A standard home warranty typically covers major appliances and electrical, HVAC and plumbing systems. It’s different from homeowners insurance in that insurance covers your home in the event of disaster or theft and personal property like jewelry and clothing contained within the home. Instead, a warranty will cover things like dishwashers, electrical units, heating and cooling systems, water and sewer pipes, ovens, furnaces, microwaves and refrigerators.
What Does a Home Warranty Cost?
The average home warranty costs around $300 for basic coverage, but can go upwards of $800 for extra service protection that includes non-standard items like swimming pools, hot tubs and even mundane appliances like ceiling fans. Like insurance, there’s a deductible. You’ll have to pay this anytime a repair person comes to your home to fix any of the items the warranty covers.
Repairs can be costly, so it’s often better to go with a home warranty plan that offers additional coverage rather than one that has the cheapest monthly premium. In the long run, it’ll save you money — and stress.
How Long Does a Warranty Last?
Most existing homes don’t include a warranty unless a homeowner purchases one on his or her own. New homes usually include a one-year warranty on appliances and systems and an extended warranty for any structural repairs. At Goehring and Morgan, our warranty covers a 10-year period, so whether you need something repaired one year — or eight years later — it’s covered. We work with clients as their partners in the homebuilding process and that doesn’t change after construction ends. We feel as though it’s our responsibility to take care of the problem. A home warranty should be more than just a piece of paper — it’s about ensuring your builder steps up to the plate and does the right thing.
As an added value for clients, we also offer home maintenance services through TotalCare Orlando, a full-service home management company that provides interior and exterior maintenance and repair services.
Your home is your most treasured asset for many reasons. When something goes wrong, it can be frustrating, but a home warranty — and enlisting the help of a full-service repair company — can make finding a solution to the problem less costly. Do your research first and understand what is and isn’t covered before you select a plan and sign on the dotted line.
Interested in building a custom home? At Goehring & Morgan, we support you throughout the homebuilding process. We’ve built custom homes for 30 years, with the goal of making our clients’ dreams a reality. Contact us today to learn more.