What is a Home Warranty and Do You Need It?
Home warranty contracts have quickly become popular among commercial real estate property owners who manage multifamily homes. A home warranty contract covers replacements and repairs of appliances and systems in a home, usually for a period of one year.
If you’re confused about how home warranties work, don’t worry. We’ve covered all your FAQs here.
What is a home warranty?
A home warranty plan is an individual contract that can cover all or some of your home’s heating, plumbing, and cooling systems, along with various other home appliances. Many companies offer customized home warranties where you can add components, such as stand-alone refrigerators or even an outdoor spa.
What is the difference between home insurance and a home warranty?
Home insurance is a buffer against damage or losses caused by unanticipated situations, such as extreme weather or a fire—but it won’t help if your dishwasher breaks down. A home warranty is specifically designed to cover breakdowns or damage caused by daily wear and tear of appliances.
What does a home warranty cover?
Home warranty plans offer coverage for different items depending on the need. Before you enter into an agreement, it’s essential to read the contract carefully and understand how coverage you’ll be receiving for the premium. Be sure to look for any limits on coverage as well as deductibles, such as trade call fees.
How can home warranties help commercial sellers?
Commercial real estate owners who manage multiple residential properties can use home warranties to minimize the risk of breakdowns. Depending on your needs, you may want to invest in a home warranty plan for one or more systems, so you don’t have to worry about paying thousands of dollars in case of a failure.
Having a home warranty can also help attract potential buyers and tenants. It’s a great way to help your listing stand out from the rest and put the consumer’s mind at ease.
Choose a reliable commercial real estate company
FSBO Commercials offers professional guidance, data analyses, strategic planning, and support to facilitate users who are looking for viable business projects, including investment in residential properties.
We can help you find the right property for your needs and show you how to manage risks with home warranty plans and more. Contact us now for more information about our services in NY, NJ, and PA.