This is the moment you have been waiting for, after months or even years of working and saving; finally – you have moved into your dream home. Except, your dream may suddenly turn into a nightmare if say your air conditioning stops working or your dishwasher breaks down and it’s time to shell out for repairs and replacements. Here comes home warranty to the rescue.

A home warranty protects you from paying large sums by covering service, repair, or replacement to maintain systems and major appliances. It is different from homeowners insurance; homeowners insurance’s financial coverage includes unexpected damages such as fires, storms, or vandalism while home warranties provide financial security in the event of appliances or systems breaking down due to age and typical wear and tear.

Generally, an annual premium is paid to invest in the warranty which can range from a few hundred to a little over a thousand dollars. When something breaks down, you can pay a service call fee and the warranty company will send for services to make the necessary repairs or replacements.

For homeowners, this is a huge save compared to the average national cost to replace some major home systems. According to HomeAdvisor: central air conditioning costs somewhere between $5,000 to $12, 500, gas furnace costs somewhere between 3,800 to 10,000 dollars, and the cost for water heaters range between $812 to $1,569. It can also save you from stress if you did not include these events in your monthly budget. Moreover, this investment helps you anticipate finances instead of being surprised with high service fees when you need them.

Home warranty also saves time which is important particularly for urgent repairs. You won’t need to worry over hunting down services when your furnace quits during winter, you would already know who to call.

For home sellers, investing in a home warranty also adds an edge to your property.  Buyers are more likely to turn your way with the assurance that they have the added protection. The warranty is also extra protection against buyer complaints after closing the sale.

However, there are some drawbacks to investing in home warranty. Most warranties do not cover items that have not been properly maintained, however, defining “properly maintained” is a common dispute between warranty holders and the warranty company. Furthermore, most warranties cover only a handful of items which you will need to take note of when reviewing your contract. Some may even come with caps on dollars per repair and per year.

Purchasing a home warranty also anticipates that services will be needed during the year. However, it is possible that no repairs were needed for the time, yet you still would have subscribed to the premium.

Ultimately, these issues can easily be addressed by partnering with a realty company that will help you get into the details of your purchase and get your money’s worth. Frank Procopio │ The Naples Agent has teamed up with Home-Tech, Inc to guide you through the process and reduce your worries when buying or selling properties.