A home warranty is a one-year service agreement between a landlord and a home warranty provider. It covers the costs of repairs and replacement services for the damages that occur despite proper maintenance. It covers the systems within the property like the HVAC systems, the furnace, plumbing, electrical, and the major appliances like refrigerators, washers, dryers, or even swimming pools, depending upon the company and your package.
However, many Charleston property owners are often in a dilemma about whether they should get a home warranty for their rental home. Here is a guide to home warranty which can make it easier for you to decide whether you need to buy one.
Advantages Of Buying a Home Warranty for Your Charleston Property
Some key benefits that a home warranty offers over time are:
Reduced Repair Costs
If you don’t have a home warranty, you’d have to pay the contractors heavy repair charges each time they visit. For instance, if you call a plumber to fix a leak in your home, it could cost you anything from $175-$480, depending on the severity of the problems.
However, if you have a home warranty, you can call the service provider for the damages covered under your policy, and they will send a suitable contractor to resolve the issue, while you only pay the service fee of $50-$125.
You can get the Best Contractors to Work on Your Property-Repairs
Home warranty companies work with reliable and licensed contractors who implement permanent repairs. They have connections with contractors who can show up immediately for urgent repairs, thus saving you from the hassle of finding a suitable contractor every time there is damage.
The amount you pay for a home warranty is considered an operating expense. Hence it is tax-deductible. The service fees that you pay for each service call are also deductible.
Peace Of Mind
When a trusted warranty provider has your back, you don’t have to worry about tenant-caused damages. Whenever an appliance or a working system stops responding, all you have to do is reach out to your warranty provider. You can live stress-free even after getting a call for an urgent repair.
A home warranty is an additional benefit, if the appliances in your property are old and no longer covered by their manufacturer warranties.
Disadvantages Of Buying a Home Warranty for Your Charleston Home
You Might Not Always Require the Entire Coverage
The chances are that the manufacturer’s warranties cover the appliances and systems. It is also possible that the devices won’t break at all. At such times, you might not require the coverage you paid for.
Limited Or No Choice to Select a Contractor
When you have a warranty, it is possible that you don’t like the work done by the contractor assigned by the warranty provider, and you might not get an option to choose a different contractor either.
Warranties Might Not Cover Some Repairs and Replacements
Warranties do not cover the damages caused due to lack of proper maintenance. The definition of ‘proper maintenance’ is often debatable. Hence, you can benefit from the warranty only if the agreement terms are clear.
Standard Home Warranty Costs
A home warranty can cost anything between $350-$600 per year. You are required to pay a defined price once a year, either upfront or in installments, depending upon the terms and plans of your warranty provider. The cost depends significantly upon the type of your property and the structure of your plan.
Do You Need a Home Warranty If You Have Home Insurance?
In a word, yes. Home insurance policies cover the structure of the property and protect your personal belongings against damages caused by unfortunate accidents like fire, vandalism, or hurricanes. However, it does not cover the unavoidable high-cost repairs or replacements. A home warranty can cover you against these. Instead of considering a home warranty as a replacement for home insurance, understand that it is a complimentary add-on that offers an extra layer of protection to your investment.
Managing a property by yourself and looking into such minute details regarding the suitability of different insurance policies, documenting the issues, and arranging for the repairs can be different. Work with professional property managers in Charleston who can help you make better-informed choices for your investment.
At Meridian Residential Group, we provide both single-family and multi-family property management in the Charleston, SC area, including in North Charleston, Summerville, Goose Creek, and Moncks Corner, among other cities. We have been in the Charleston rental business for over 20 years and have helped landlords keep their properties in tip-top condition.
For more information, contact us at Meridian Residential Group.