In a perfect world, houses would be flawless and never require repairs. Unfortunately, that’s not reality.
In fact, 57% of homeowners find themselves doing more housing restoration than expected. The misconception is that a home warranty replaces a home inspection—but that’s not true. There are numerous reasons why homeowners shouldn’t rely solely on a warranty to cover them when their house needs a “pick-me-up”.
Below, we’ll shatter some of the myths about home warranties and hopefully prevent you from having a headache down the line. Read on to learn more.
A Home Warranty Doesn’t Replace a Home Inspection
You may have thought to yourself, “What’s the point of getting a home inspection when I have a home warranty”? Well, a home warranty doesn’t cover everything, and it definitely isn’t a substitute for a home inspection. Here’s why:
1. Sometimes there is no way around omitting a home inspection. If you are financing a house, the lender might require an inspection anyway. In some cases, not getting a home inspection could disqualify you from getting approved.
2. Everything isn’t paid for by a home warranty. If the seller provides a warranty with the purchase of their home, it’s usually the standard plan only. That means that the majority of the essential repairs that require attention aren’t covered.
A basic home warranty is fine for fixing common problems and can minimize the cost of repair. On the other hand, most home warranty plans require add-ons in order to cover more extensive repairs.
The Benefit of a Home Inspection
A person who’s not trained won’t know what to look for in a home inspection, which is why it’s important to hire a professional. There’s no way that the average individual can catch flaws in a house by doing a simple walk-through.
The advantage of getting a professional home inspection is that it catches issues that aren’t covered by a warranty. By spotting the problems upfront, you can get the repairs fixed by the seller before you close on the home.
If not, you’ll have to pay for repairs out-of-pocket after the house comes into your possession.
The Downside of Home Warranties
If you’re thinking about skipping your home inspection, don’t do it. Below is a little more information about why you shouldn’t completely depend on a home warranty:
If you think that not having a home inspection saves you money, think again. You might bypass the inspection cost on the front end, but you’ll eventually pay it in the long run. Many home warranty plans charge a service fee to customers when a claim is submitted and a service professional comes out to the home.
The fee is generally $75 or more. With some warranty providers, there is only one charge no matter how many visits are required. However, other home warranties require a fee per repair.
It’s a good idea to read your warranty. You may find yourself spending hundreds of dollars over what you would have paid for a home inspection.
For the most part, home warranty plans have a maximum limit they are willing to pay to replace certain items. Generally speaking, the coverage amount is for home appliances, and the funds are adequate enough to handle the expenses.
On the contrary, some warranty providers have limitations that are significantly low and don’t factor in the expensive cost of new appliances.
Again, you should become familiar with your warranty contract to make sure that you have sufficient coverage.
Another important element of home inspections is pre-existing conditions. Every warranty company is different, and the provider you choose might exclude prior flaws.
A pre-existing exclusion gives the warranty provider the option to reject coverage on service claims that they consider pre-existing. Therefore, if the company decides that the repair was something that happened before your coverage began, then your claim could be denied.
The majority of home warranty providers advertise a “no home inspection required” benefit. However, it’s to the advantage of the warranty company. Without proper documentation of a home inspection checklist, they can reject your claim because there is no proof that it happened after the warranty began.
But of course, if you have a home inspection, it backs up your claim that the condition is current.
Choosing a Service Provider
Another huge downside of home warranty providers is that they usually have a group of repair companies that they are contracted with to provide services to homeowners.
Unfortunately, that means that you are not allowed to pick the company that does your repairs. In situations like these, the restoration companies are often focused on providing services up to the warranty providers negotiated rate only.
Furthermore, there is a chance that service providers could decide in favor of the warranty company regarding possible pre-existing conditions. They may side with the home warranty provider to keep their relationship strong with them.
This scenario may not happen, but it’s good to know that it’s a possibility. With that in mind, you should take advantage of a home inspection to prevent issues like this from occurring.
Home Inspection in Northeast Ohio
As you can see from the information above, a home inspection is vital to ensuring that you don’t have expensive repair costs after you purchase a home. If you’re looking for expert inspectors, Class Home Inspection has you covered.
We service Northeast Ohio, which includes Cleveland, Madison, Perry, Geneva, Jefferson, and other surrounding cities.
To ask questions about our services, call 440 812-3051 or schedule an inspection online.
We’re here to protect you during your home-buying process!