First Time Home Buyer Advice
Home Insurance vs Home Warranty
Making the move from tenant to owning your first New Orleans home means you’ll have to take on the responsibility of all of the repairs and maintenance that you may have relied on your landlord to handle. Leaky plumbing, termites, dishwashers that stop washing….all of these fixes are now on you.
Some first time home buyers assume that their homeowner’s insurance will take care of these problems, but your insurance will only cover damage to your property, not routine maintenance and repairs.
This is where the purchase of a home warranty can be a smart move.
Some smart home sellers are offering a home warranty to the buyer of their house to give them a little more peace of mind for that first year. Knowing that you can have a mechanical issue fixed for the price of a service call can make all of the difference in the world to a first time buyer that might be stretched a little tight in their budget.
But, you don’t have to rely on a seller agreeing to provide a warranty. You can purchase one yourself and then renew it each year to keep your maintenance costs to a minimum.
What’s covered by a standard home warranty?
There are limits on the coverage, but generally you can have the following items repaired for just the cost of a service call, which typically runs about $75-$100.
- Heating and air conditioning systems
- Plumbing stoppages, leaks or breaks
- Garbage disposals and toilet flushing mechanisms
- Electrical panels, switches and outlets
- Appliances such as dishwashers, ovens, ranges, built-in microwaves, refrigerators, washers and dryers
There are also options to increase your coverage to include pools, code upgrades and more.