I have heard of home warranties, is it a good idea for my Denver home? I am surprised by how few home warranties that I actually see purchased in the Denver Real Estate market. For how affordable these plans are, and all that they cover, it seems like a no brainer to have a home warranty. But I don't have a home warranty on any of my properties and I know few people who do. It made me wonder why this is.
Whenever I go to Best Buy, I always get hit up by salespeople about buying an extended warranty or "service protection plan." And I am always shocked by how many people opt for theprotection plan and how much these plans cost. If you compare the cost of the plan to the cost of the item, it is typically a large percentage of the purchase price. A$700 computerwith a $100 service plan. But when you compare the cost of a home warranty, typically around $300 per year, and the average price of a home in Denver is around $250,000, then a home warranty is pocket change.
Most warranties that are offered provide coverage for most of the entire home. Most don't require a pre-inspection of the home and the warranty can be put into place at anytime. Some companies have a per trip deductible and others have a yearly deductible where once it is paid, every other claim is covered for free. These deductibles are usually around $50 and when you are looking at replacing a new furnace, once again, that is nothing.
If you are a landlord and have rental properties, it could be a great fit for you too. Some warranty companies have an online claim process that could come in handy for your tenants. Something breaks in the house, they do an online claim and you as the landlord don't have to do a thing.
After thinking about the benefits of a home warranty further, I am definitely considering purchasing one for my rentals and my home. Could save a lot of headache and I would gladly pay $300 every year if it meant I have no problems to deal with in my home. To get an idea of what is covered by a typical policy, click here. If you have experience with a home warranty, let me know, would love to get some first hand knowledge. And if you need some suggestions on what companies are best, I can help with that too.
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