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New Home Warranty: Is It Worth the Expense?
Buying a new home is a significant investment. For many people it is the most important investment in a lifetime. You wouldn't think of buying a new refrigerator or a new car without a warranty. Buying a new home without a warranty is a lot like going canoeing without a paddle. A warranty is your safety valve for your new home. If anything goes wrong, you're covered.
When you buy a house, you are buying a set of potential problems. You do not want to tread those waters without protection. Countless things can go wrong after closing. The furnace or hot water heater may fail. There may be faulty wiring. The plumbing might spring a leak. All of this may wind up costing you hundreds, even thousands of dollars.
For new homebuyers, state law and state building requirements provide for four forms of new-home protection:
Each of the above warranties do have a catch, however. All the promises, rules, and regulations mean little unless the homebuyer can get assistance when something goes wrong. The builder can refuse, stall, or may even go out of business. A new home warranty, therefore, is the best guarantee that you have for recourse, in the face of trouble. The independent and separate warranty firm is on your side. They will see that the repairs get done.
About 35 percent of new homes come with insured warranties. Builders provide the policies and include the cost in the price of the home. There are no deductibles in these warranties, and they can usually be transferred to a new buyer if the home is re-sold during the coverage period.
A typical 10-year policy covers three main areas:
Independent warranty coverage is a good investment, whether provided by the builder or purchased by the homeowner. You cannot match this kind of long-term protection, simply by withholding some escrow money when you are buying your new home. This type of insurance will give you peace of mind, so that you can truly enjoy your new home.
Copyright: Jaye Lewis
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