HOME OWNERSHIP: BENEFITS & REALITIES
Home ownership has its ups and downs. Enjoying the benefits or dealing with the realities?
HOME WARRANTY PROTECTION
Home Warranty: Protection That May Pay For Itself
A home warranty plan can help you manage the costs of unexpected appliance and major system repairs that pop up during home ownership. A home warranty plan is a contract with a service provider that covers the repair or replacement cost of your home’s appliances and major systems. Depending on the level of coverage you purchase, a home warranty plan may pay to repair or replace your appliance or system — regardless of its age or the length of time you’ve owned it.
Individual home warranty plans vary; however, most generally cover these household appliances and systems:
- Duct work
- Trash compactor
- Garbage disposal
- Ceiling and exhaust fans
- Jetted bath tub
- Sump pump
- Water heater
- Toilet tank and bowl
Plus, you may also be able to buy additional protection for your:
- Central air conditioning system
- Garage door opener
- Built-in pool or spa
- Well pump
Offset the Cost of Repairs
While having a home warranty plan is not legally required, it can be a very good idea because your homeowner’s insurance policy will generally not cover the repair or replacement of your home’s systems or appliances due to normal use. While a manufacturer’s warranty may be included with the purchase of an appliance or major system that warranty will eventually expire — leaving you with the responsibility to repair or replace. These are very common costs of home ownership.
Another benefit of a home warranty plan? Buyer incentive! If you are trying to sell your home, including a home warranty plan may give you an advantage over other sellers in your area.
Whether you want to manage the costs of unexpected appliance and major system repairs or simply want to make your home more attractive to potential buyers, a home warranty plan provides peace of mind.
WORDS YOU SHOULD KNOW
Warranties use a lot of words you might not understand. If you’re considering home ownership, here are a few important words to know:
Manufacturer – The company that makes a system or appliance.
Major system – Mechanical equipment or a network of pipes that are essential to a home’s ventilation, heating, cooling or plumbing functions.
Service provider – A tradesperson or contractor who repairs or replaces systems or appliances,
PROTECTING YOUR HOME AND INVESTMENT
Home ownership is an investment that you pay for over a long time. Because it’s an investment, you’ll want to protect it so you don’t lose it.
Follow these steps and protect yourself from losing your home (or from your home losing value):
MANAGING expenses of home ownership
As a home owner, it’s important to keep on budgeting and saving. Starting with your very first mortgage payment, you need to keep up your good credit rating by making your payments on time.
BE A PART OF YOUR COMMMUNITY
Investing in a home means much more than buying a piece of property and a house. It means becoming a good neighbor and investing in the life of a community. Even before you move in, try to become familiar with facilities in your area such as:
- The nearest hospital.
- Public schools and adult education classes.
- Pharmacies and grocery stores.
- Public transportation.
- Local library, parks, and recreation centers.
Here are a few suggestions to become involved in your community and help make it a better place to live.
The information contained herein is being provided as-is and without representation or warranty. The enclosed information is not intended as legal, tax or financial planning advice. Any discussion of tax or accounting matters herein (including any attachments) should not and may not be relied on by any recipient or reader. The recipient/reader should consult his/her tax adviser, legal consultant and/or accountant for a statement of tax and accounting rules applicable to his/her particular situation and for all other tax and accounting advice.