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Home Maintenance

Are Home Appliances and System Insurance (Warranties) Worthwhile?

Homeowners have the opportunity to buy home appliance and system warranties that are also known as Appliance and System Insurance. But, these “warranties” are not insurance policies. They are service contracts that cover your home appliances and systems such as heating ventilation, air-conditioning, hot water, electrical and plumbing systems. There is a great deal of debate among financial advisors and consumer advocates as to whether or not the service contracts make sense. Frankly, the decision is highly personal depending on many factors the most important one being, how risk averse are you?

What Isn’t Covered

These service contracts do not replace homeowners insurance and will not protect you against fire, a tree crashing through your roof or other perils covered by your homeowners insurance policy. Service contracts do not give you any liability coverage in the event that someone is harmed on your property.

Most service contracts require that in order for an item to be covered it must be properly maintained. This means for items such as your furnace and hot water heater you may be asked to produce maintenance records should the system need major repair or replacement.

What is Covered

Homeowners can choose levels of coverage.

Level I may only cover major appliances such as refrigerators and stones.

Level II may offer more protection by covering appliances and heating ventilation and air-conditioning systems.

Level III may provide the most extensive insurance by covering all the items in level II as well as homeowner’s entire electrical system and plumbing system.

When Does a Home Appliance and System Warranty Make Sense?

First let’s discuss when a service contract doesn’t make sense.

Renters never need a service contract

Buyers of new homes where major appliances have warrantees and the structure is covered by a builder’sguarantee do not need to obtain a service contract at this time.

If you’re a homeowner who doesn’t fall into either of the two categories above you may want to consider purchasing a home appliance and system warranty. Assuming you get a full warranty, that is a level III contract, you can expect to pay between $350-$500 per year. If you have a service call you will also pay in the neighborhood of $70 as your deductible. So, if you’re $1600 stainless steel gourmet stove stops working the warranty company will fix it, and if they cannot fix it they will replace it, for a total cost to you of $70 (and of course whatever your premium for the year is).

The warranty company is betting that homeowners will not have major repairs or replacements of appliances or home systems. The homeowner of course is betting that they will. As with all gambling bets one party has the advantage, and in this case it is the home warranty company. Basically the homeowner is protecting himself from a catastrophic loss. The protective nature of the warranty program is often confused with a typical homeowner’s insurance program, again it is not.

Folks who don’t like risk may find comfort with a home warranty program. Homeowners who are not handy may also find peace of mind by obtaining a service contract for appliances and major home systems. Folks in older homes with older appliances have at least an even chance of having to use a home warranty.

If you decide you want to buy a home warranty remember:

It does not replace homeowners insurance

Shopping around is a must

Once you have narrowed your search to a few companies call and ask for references you can speak to–reviews of most home warranty companies are very mixed. If you have questions as to whether your homeowners policy covers certain risks that are duplicated by purchasing a home warranty speak to your independent insurance agent before you make any changes in your comprehensive home insurance policy.…

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Home Renovation

What is a Home Warranty?

For many people, landing your first real estate is one of the most fulfilling and yet most difficult things to undertake. The purchase of your first home is also one of the highlights in any person’s career because it is often seen as a proof that the person has already attained a sort of financial stability as characterized by the capacity to buy and keep a home. Because of this, one of the best practices is to purchase your first real estate with a home warranty.
Your money’s worth
A home warranty is a contract that is often provided by major real estate agents to ensure that you will get your money’s worth behind one of your most major purchases – your home. Here, a contract is signed between you and the agent or party where you bought your home. Any breakdown in the major systems in your house during the time specified in the warranty agreement will be replaced or fixed by the warranty insurance provider. Thus, the home warranty is one of the best ways to ensure that your real estate will be an investment worth the time and effort you have exerted to acquiring it.
For quality investments
The home warranty is often used in conjunction with the home inspector as a means for someone looking to invest in real estate to ensure the quality of the home to be purchases. In home inspectors, the basic idea is to ensure that the home is in a good enough condition to ensure that there will be no major breakdowns after the house has been bought. In the same way, the warranty works to ensure your safety in the case of a home system breakdown, but in this case, after the property has been bought. One of the first things that an experienced real estate buyer will tell the novice real estate buyer or investor is that with houses, what you see is not always what you get. With minimal costs laid out for a paint job, some houses may seem to look like absolute beauties. However, there are sometimes unforeseen and unwanted details that tend to show up only after the purchase. The warranty is a safety net against these.
Other important reminders
Some other important reminders when it comes to home warranties is that these contracts can be used in any number of times by the homeowner, as long as the home system breakdown occurs during the time frame covered by the insurance. Equally important to keep in mind, however, is that the coverage of the home warranty differs from one type of home warranty plan to the next. For this, it is important that you look into the fine print in your contract to see where your home warranty works and where it doesn’t. In general, however, the home warranty does not cover the home system breakdowns that occur as an effect of negligence or improper use of certain appliances. Also, the home warranty will not cover faulty or improper installation of basic home systems, as this will eventually lead to a breakdown.
Now that you know the various means to safeguard something as valuable as your real estate, the next step is to go about canvassing for you first real estate purchase.…

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General Article

3 Helpful Tips To Prepare Your Home for the Market

Thinking about selling your home? There are ways to prepare your home to properly welcome potential buyers. Here are three things you should do before you put your home on the market.

1. Update Your Landscaping

Getting your landscaping in excellent shape is a great way to signal to homebuyers that you care for your property. Taking care of your lawn, as well as your flowers and trees, can be a big job. Whether your landscaping just needs a minor update or a complete overhaul, expert landscape services Memphis TN will bring your yard up to par, leading to a quick sale when you go to sell your home.

2. Declutter and Clean

When a potential buyer enters your home, they want a clean slate in order to imagine what everyday life would feel like if they choose to purchase your property. This is why your home needs to be decluttered and deep cleaned before it’s ready to welcome homebuyers. Remove all personal items from your house and store them away. Once you’ve taken out the excess clutter, it’s time to deep clean every surface in your home. Do a thorough job of cleaning – buyers will be inspecting your home and you want to make sure that they are impressed from start to finish.

3. Make Minor Repairs

If you’ve been putting off any minor repairs throughout the house, make these small fixes before you put your home on the market. Repair any leaking toilets or faucets, tighten up loose doorknobs and handles and patch any holes you may have in areas of drywall. Taking care of these small details will show buyers that your home is move-in ready.

Take some of the stress out of the selling process by making sure each potential buyer has a great first impression of your home. By following these tips, your home will be prepared for a quick sale.…