When you buy a home in Berks County, you'll need to be able to take care of it as the years go on. One way that you can make sure that your home's systems and appliances are kept up is through a home warranty. Yet home warranties are not necessarily the right choice for every home owner. Here are some pros and cons to help you decide if buying a home warranty is the right choice for you.
What is a home warranty?
A home warranty is not the same as insurance. Insurance will protect you if there's any damage to your home from something like a fire or windstorm.
A home warranty, on the other hand, is a policy that protects your home's major appliances and systems as they age. It's there to save you money when your water heater breaks unexpectedly or your dishwasher suddenly stops working.
How a home warranty works
A home warranty does have one similarity to insurance in that you pay an annual premium. Usually, homes of up to 5,000 sq feet in size are covered under the standard warranty. Above that, you have to pay for additional coverage.
If something that's covered by the warranty breaks down, you pay a deductible that will range from $50-$125 to have the item fixed or replaced.
The benefits of a home warranty
With a home warranty, you're paying for peace of mind. If something expensive breaks, it will get fixed by a professional or replaced. So for people who aren't handy with a tool, a warranty is a good idea. It can also be beneficial to new homeowners who may not be as familiar with how their new home's systems work.
Having a home warranty also helps avoid unexpected costs, making it easier to budget your finances. You'll know what your premium costs upfront and you'll know what your deductible is for any repairs that are covered under the warranty, making it much easier to handle the unexpected.
The drawbacks of a home warranty
Not everything in your home is covered by a home warranty. This is why you need to go over the details to make sure the right items are covered.
However, one major pain point of most warranties is that they won't cover items that have not been properly maintained. This is a very subjective clause, and often leads to disputes with the warranty company. This is particularly the case if the previous owner did not take care of the appliance and the new homeowner is left hanging.
Another issue, for some, is that each year money is paid upfront under the assumption that repairs will eventually need to be made. However, that may or may not be the case. Some years, everything may work fine, but you'll have paid the premium, regardless.
Making the decision
A home warranty certainly can be a help for some of your maintenance issues, but it's not the perfect solution. In the end, you're the one who needs to decide if it's right for your home.
Make sure to visit to our blog every week for more real estate advice, along with local Berks County articles. Need help finding the perfect home for sale in Berks County? Our powerful home search tool will help you find the home of your dreams.
Home owners in Berks County and around the nation are taking advantage of incredibly low mortgage rates and refinancing their homes. If you're thinking about refinancing your mortgage, what should you expect in this current market?
Summer is almost officially here in Berks County, and already the temperatures are beginning to climb. The forecast this week for Reading shows temps in the low 90s by the end of the week!
When the weather gets warmer and more humid here in Berks County, it makes for the ideal condition for pests to thrive in the summer, such as termites and cockroaches. Once your home is infested with pests, it can be difficult to get rid of them, even with professional help. This not only can cause issues now, but especially if you decide to sell your home later.
The farmer's markets of Berks County are open or opening soon, and ready to bring you their farm fresh products. Even with COVID-19 restrictions, you'll be able to get your essential fresh food items just like you always have. Why not take a short drive to these farmer's markets and help support our local farmers?
Are you upgrading your kitchen with marble countertops? If so, it's a great way to add value to your kitchen if you plan to sell you home in Berks County soon. But the thing to keep in mind with marble is that it requires expert installation and special cleaning and care.
If you plan to sell your home in Berks County, one way to add value and visual appeal to your home is to paint your indoor or outdoor stairs. People often overlook the stairs when it comes to home improvement projects. But it can be an easy way for you to make a big impact in the look of your home. Whether you want to give your interior stairs a makeover or just fix the peeling paint on the back deck, there's a perfect paint for the job.
It cannot be overstated how important it is to have good credit when buying a home in Berks County. Sure, you can technically buy a home with less than perfect credit, or even with bad credit. For example, an FHA loan asks for a minimum down payment of 3.5%. FHA guidelines require a minimum credit score of 580. With a down payment of 10% or more, FHA score requirements fall all the way down to 500. But you will pay for it in the end with higher mortgage payments. So the goal needs to be to get your credit in as strong as shape as possible before you buy a home in Berks County.