Monday July 25, 2016
When considering a new home, one of the first things you need to research is the warranty being offered with the home. As a buyer, new home warranties are very important. Although many homes are well constructed, a builder should be proud to stand behind their work. Here’s what you need to know:
What is a Home Warranty?
A home warranty covers specific items under a service contract in the event something goes wrong. This is a supplement to homeowner’s insurance, which covers the structure of the home and personal belongings. A home warranty will cover kitchen appliances, plumping, water heater, electrical systems, and other items. They offer a form of protection that will help alleviate repair bills, and can help new homeowners if things break down.
Why Would You Need a Home Warranty?
As a first time buyer, funds may be limited due to the purchase of the home, moving expenses, and other incidentals. If something breaks down, a home warranty (or manufacturer’s warranty, depending on the issue) would repair or replace the item without having to incur additional expenses. For most homeowners, it’s a contingency that offers peace of mind.
How Much Does a Home Warranty Cost?
If purchasing a pre-owned home, the warranties vary, but usually average between $350 to $500 for basic protection. Add another $100 to $300 to the base price for added protection. Although this may seem costly, it is well worth the time and effort when you need to get things repaired or replaced and are not in the position to incur additional expenses.
A new home buyer may not have the same issues with their home that someone who is purchasing a pre-owned home may have, but things do happen. Even when purchasing brand new, the home should come with some form of warranty to cover any mishaps or situations that may occur through no fault of your own.
Every Smith Douglas home comes with a 1-year limited warranty that provides coverage for the first 12 months after closing and addresses failure of the home or its systems to perform as they should. Coverage includes all major mechanical systems (electrical, plumbing, appliances, heating & air) as well as many other problems related to the integrity and proper operation of the new home due to defective equipment, materials or installation.
Also included with a Smith Douglas home is an additional major structural warranty handled by 2-10 HBW Corp which covers key structural defects of the load bearing parts of the new home for 10 years after closing.
Knowing what the home warranty covers is very important. It is essential to read all the fine print, terms, and conditions to determine whether the standard warranty will cover your needs, or you need additional coverage. Additionally, it is important to understand what the limitations of the policy are. For more information on new home warranties and making the right decision, contact a New Home Specialist at Smith Douglas Homes.