Does your house have a warranty?!
In this article we will take a look at a two different types of property warranties and consider the benefits for each.
Structural Warranty
What is a structural warranty?
A structural warranty, also known as a new build warranty or new home warranty, is a type of insurance or guarantee that provides coverage for certain structural defects or issues in a newly constructed building or home. It is typically offered by builders, developers, or warranty providers to protect homeowners from financial losses related to structural problems that may arise after the completion of construction.
What does it cover?
The specific coverage and duration of a structural warranty can vary, but it generally includes protection against defects in the load-bearing elements of the structure, such as the foundation, walls, roof, and other essential components. Common issues covered by a structural warranty may include problems with the framing, footings, beams, and other structural elements.
Structural warranties are often divided into different phases, such as the first year, which may cover workmanship and materials, and subsequent years, which typically focus on major structural issues.
What are the benefits?
These warranties can provide homeowners with peace of mind and financial protection in case they encounter unexpected structural problems in their newly built homes. Other benefits may also include increased property value and a faster resale when the time comes. A structural warranty can also provide some legal protection that can help prevent disputes and, if issues arise, provide a framework for resolving them.
Home Warranty
What is a home warranty?
A home warranty is a service contract that provides coverage for the repair or replacement of major home systems and appliances. It is different from homeowner's insurance, which primarily covers losses related to theft, natural disasters, or other catastrophic events. Instead, a home warranty focuses on the normal wear and tear of household systems and appliances. When you purchase a home, even a home that isn’t new, there is a very good chance that you will be offered a home warranty as a safety net against expensive, unforeseen repairs. This is different to a structural warranty, which is used by home builders and buyers and not used for existing homes.
What are the key aspects?
Home warranties typically cover major systems such as heating, ventilation, and air conditioning (HVAC), electrical systems, plumbing, water heaters, and major appliances like refrigerators, ovens, dishwashers, and more. Often homeowners insurance doesn't cover these components. The specific items covered can vary depending on the warranty plan. Home warranty contracts are usually annual and can be renewed each year. Some homeowners may also receive a home warranty as part of the purchase of a new home, and coverage may be included for the first year. When a covered item needs repair or replacement, the homeowner contacts the warranty provider, and the provider arranges for a service professional to assess and address the issue from their network of pre-approved service providers
What are some benefits?
Home warranties can offer several benefits to homeowners, providing a sense of security and financial protection. Here are some potential benefits of having a home warranty:
Home repairs can be expensive, and a home warranty can provide financial protection by covering the costs of repairing or replacing covered items. This can help homeowners budget for unexpected expenses and avoid significant out-of-pocket expenses. This can alleviate concerns about unexpected breakdowns and the associated costs.
With a home warranty, homeowners can often make a single call to the warranty provider to request service for a covered item. This can be more convenient than having to search for and hire individual contractors for each repair.
Home warranty companies typically have a network of pre-screened service providers and contractors. This can ensure that homeowners have access to qualified professionals to address covered repairs.
When selling a home, having a home warranty in place can be an attractive selling point. It can potentially make the property more marketable to buyers, as they may feel more confident about the condition of major home systems.
It's important for homeowners to note that not all warranties are the same, and the coverage can vary between providers, so understanding the specifics of the coverage is crucial to maximising the benefits of any warranty. It's essential to thoroughly research and understand the terms of a warranty before purchasing to ensure it aligns with your needs and expectations. This ensures you understand what is covered, what is excluded, and any limitations on the coverage. Additionally, homeowners should choose reputable providers with a track record of fair and efficient claims processing. Finishing a project and not sure what type of warranty you need, give our team a call today to discuss this further.