The last thing any homebuyer wants to face is that they purchase a home that ends up becoming a ‘Money Pit’ situation, even if the home had passed the inspection. That is the reason that a home warranty exists because a home warranty will cover any complications that could happen in a home which is usually the result of wear and tear that any home insurance policy won’t cover at all.
Some examples of problems that can happen in a home suddenly right after the purchase are:
- Any serious plumbing failure which will result in thousands of dollars of repairs
- Electrical failure
- A leaky roof which happens for reasons that are not covered by any home insurance policy
- Malfunctioning HVAC systems
- Appliances breaking down that were included in the home purchase
- Any other serious mechanical failure
That said, these serious problems can happen out of nowhere within a short period of time after moving in. And, many appliances do come with warranties as well on their own. However, those warranties rarely include the cost of labor, and there is a good chance that any old appliance that came with the house that was purchased had already expired.
This is why, if you are looking to buy a home and you are a first-time buyer, you already know that you must have some kind of home insurance policy on the home. However, because of these problems that can potentially come up that will not be covered by home insurance – it is in any homebuyer’s best interest to purchase a home warranty plan as well.
Additionally, many home insurance plans do not protect any other of your home valuables whereas a home warranty plan would. And, the other plus side with a home warranty plan is that you can have all of your items covered by one home warranty plan with only one company. That means you only have one company to call that will cover all of your home valuables as well as anything else that would be covered.
That said if you are looking into buying a home, and even if you arrange to have an inspection done, it is in your best interest to ask your real estate agent for advice when in it comes to choosing a home warranty plan – in conjunction with home insurance. Because the fact of the matter is, you need both in order to get the full home protection that any homeowner will need.