Moving into a new home is an emotional joyride. Excitement and anxiousness go hand in hand. If the homeowner passed down the home service agreement, it would not be so bad. However, if the air conditioner goes down before all the boxes are emptied, it would be a great disappointment.
Home service agreements are an easy and convenient way to manage home repairs and maintain property upkeep without much hassle.
What is a home service agreement?
Protecting one’s house with a Home Service Agreement, also known as a Home Warranty Service Agreement, is straightforward and affordable. The agreement is helpful amidst a real estate transaction and even for the longstanding homeowners.
A home service contract protects the homeowner against the significant home system and appliance repair and replacement costs while also removing the trouble and inconvenient task of finding competent repair providers. Typical home service contracts cover repairing or replacing a house’s major systems, such as heating, air conditioning, electrical and plumbing, and major appliances. A homeowner with a home service contract has accessible and easy-to-use repair resources at their fingertips, and each repair visit may only cost a nominal service fee.
The prime difference between a home service agreement and home insurance is that service agreements cover the repair and replacement costs. In contrast, insurance takes care of damages caused due to disasters like water, flood, fire, mold, or natural calamities.
In retrospect, the two together can provide wholesome security and safety to homeowners to keep their homes secure and available for repairs and restorations without burdening themselves with the financial crunch.
Who is it for?
Anyone buying a pre-owned home should purchase a home warranty from a reliable organization, especially if the home inspection finds that several of its appliances and systems are nearing the end of their useful lives.
To sweeten the sale, many property sellers give a home warranty to purchasers. If an oversized item breaks down unexpectedly, it can be fixed or replaced for a low cost, which a new buyer always appreciates.
On the counter side, a house warranty for a freshly constructed home is not worth it because it ends up being duplicate coverage. Homebuyers who purchase new construction receive from one up to a ten-year warranty from the builder on the home’s materials and workmanship, including plumbing, electrical, heating, and cooling systems. In such cases, it is an unnecessary investment out of which only one would be applicable yet; the purchaser might be paying for a service that is bound to go unused.
The builder often does not cover appliances, but they usually come with a manufacturer’s guarantee. Moreover, some credit cards offer rewards programs on top of the manufacturer’s guarantee with new appliance purchases. Hence, while remodeling the kitchen, if payment for new appliances is made via credit card, a home warranty for those items is not recommended.
How to get a service agreement?
A home service agreement has various sources to get one. Home service agreements can be obtained directly by contacting a service provider or through references. Most home service contracts are sold by realtors or firms that specialize in agreement sales and customer service. Service agreements can be obtained at any time during the homeownership process, but they are instrumental and famous during the purchasing and selling phase. The vast majority of service contracts are sold and handled by reputable, licensed organizations that follow current legislation, adhere to high customer service ideals, and are financially and insurance protected.
Benefits of home service warranty
Home service warranties are popular among the masses due to the benefits they offer.
- Breakdown of home appliances can happen at any time without notice. To incur heave replacement or repair costs may not feasible for all at that given point. With a service warranty, the customer only needs to pay a consensual fee for a service visit. This can be a massive relief for realtors and homeowners alike. It saves unexpected expenses.
- Immediate repairs are offered without going through several providers to check for service availability. A one-point source for all appliances relieves customers from the headache of keeping a record of multiple service provider’s contact numbers to avail repairs. Additionally, the service contracts provide 24*7 services, ensuring that clients can connect to them in an emergency.
- The prime benefit of service agreements is the reassurance that tends to indicate that the house is covered against common breakdowns due to defects or normal wear and tear for the duration of your contract. Indeed, contract users use their home service contracts on average more than twice a year.
- Improves the life of property and appliances by tending to appropriate care and certified technician support. This is a prime reason for the premature wear and tear of the devices. Unskilled technicians tend to cause more damage. Service contractors employ a team of trained and well-equipped technicians to alleviate such nuisances. Also, an experienced hand recognizes probable breakdown before it may happen and educate customers accordingly to care for the appliances. The service contracts are all about educating customers about the best practices to manage for their instruments to cut down on malfunctions and reduce the risk of potential deterioration.
- A well-kept property is always appreciated in the real estate market, and a service warranty contributes significantly to maintaining the property’s cost.
- The service agreement can be passed on from the old owner to the new owner on reselling. The transferable feature adds to the convenience, especially for the new movers.
A house warranty is not a foolproof way to protect oneself, but it does minimize the prices from the day-to-day wear and tear that come with owning a property. There would always be counterarguments of disadvantages to house warranties; the benefits far outweigh them. The annual cost of home service agreements is little compared to the price and complexities of managing a significant repair or replacement without a warranty. Furthermore, the friendly support of a service contractor might be just what a new mover in a new locality might need.