If you are considering buying a home in New York, or have recently purchased one, you may have heard talk of home warranties. These warranties serve as insurance for maintenance and repairs of the HVAC, as well as the appliances, veneers, and more.
But do you need a home warranty in New York? You need to know exactly what a home warranty is before discussing whether it is necessary.
What is a Home Warranty?
A home warranty is a type of insurance you take on your house. Paying around $50 per month, you get coverage for repairs within the home. There are a number of well-known providers in the US and New York in particular. You can check out Liberty Home Guard for instance, which is based in Brooklyn, NY.
There are two main types of home warranties. The first covers appliances, and is the cheaper option. The second covers major systems issues, including HVAC (heating, ventilation, and aircon) malfunctions. You can also get a combo plan which covers everything.
The quality of a home warranty depends on both the company you choose and the condition of your home. A pristine new property will qualify for a great plan, while it is probably too late to cover a house already in major disrepair.
Is a home warranty necessary in New York? Here are the reasons you might consider getting a home warranty.
Maintenance Adds Up
Most new homeowners make the following mistake. They assume that maintenance is something that will come up once in a while and, for the most part, won't be all that significant. Unfortunately, that is not quite the case.
Part of owning a home is regular maintenance. One thing comes up after another and, if you leave them for too long, they lead to major problems. By this point, repairs cost an exorbitant amount of cash you just cannot lay out.
A warranty can help you deal with the regular maintenance issues that come up. Your home doesn't fall into a state of disrepair and you don't end up having to pay big for repairs you can't go without.
If you live paycheck-to-paycheck, you are not alone. Most Americans do. Even relatively high earners may not be left with much disposable income once they have paid for health insurance, car and home repayments, school fees, and the like.
So, when a big expense comes up that cannot be put off, we find ourselves stuck. Many people end up taking out exploitative loans, such as payday loans. This only further contributes to the debt cycle so many Americans are stuck in.
Getting a home warranty ensures that you won't have to lay out a big sum of cash that you just do not have. It ensures you don't end up taking out a loan just to pay for your house to be liveable.
A home warranty is not for every New Yorker. Some people are able to save responsibly and keep money aside for home maintenance each month. But if you are the type of person who lets maintenance issues build-up, a home warranty can save you from financial trouble down the line.