Buying a California house has its own set of problems, ranging from Mother Nature’s natural degradation to unexpected repair charges. A home warranty can protect against fiscal catastrophe by keeping essential home systems and appliances functioning. Not all home warranties, however, are created equal, and understanding what is covered—and not covered—is most important before making a decision.

At LBC Mortgage, we support homeowners through every step of homeownership, from receiving the best possible mortgage interest rates and extending into understanding other protection measures like home warranties. In case you’re considering buying a home warranty, continue reading to find out all about it before buying coverage in California.

What Is a Home Warranty?

A home warranty is an agreement that covers the repair or replacement of a home’s primary systems and appliances. While homeowners insurance protects against loss due to fire, theft, or natural disasters, a home warranty protects against mechanical failure due to ordinary wear and tear.

Common items that are protected are:

  • HVAC systems
  • Plumbing and electrical systems
  • Water heaters
  • Kitchen appliances
  • Washers and dryers

For California homeowners, where aging infrastructure, earthquakes, and extreme weather can put extra pressure on home systems, a home warranty gives homeowners financial protection against unexpected repair costs.

How Does a Home Warranty Work?

If the item is not functioning properly, the homeowner sends a notice to the warranty firm. The firm dispatches a qualified mechanic to examine and fix the problem. Homeowners do not have to pay for repairs entirely but a small service fee, between $50 and $150 per visit. In case the item is irreparable, the warranty company pays the replacement cost under the policy conditions.

Why California Homeowners Need to Consider Twice a Home Warranty

The California real estate market is competitive, and housing prices remain high. For other homeowners, it can be costly to maintain a home while maintaining mortgage payments. A home warranty provides additional coverage, and the homeowner can budget for repairs without experiencing immediate financial hardship.

Protection Against High Repair Costs

In California, repairing or replacing major household systems is costly. Basic HVAC repairs alone cost between $150 and $1,500, and replacing an entire air conditioning system costs $5,000 or more. Homeowners can save a substantial amount of money on out-of-pocket expenses when surprise failures occur with a home warranty.

Support for Older Homes

Most homes in California, especially urban ones like Los Angeles and San Francisco, are old, decades old. Aging electrical and plumbing infrastructure are more likely to break down. A home warranty ensures that if a major system breaks down, it can be replaced or repaired without breaking the bank.

Added Value When Buying or Selling a Home

For buyers of homes, a home warranty provides confidence that they will not be faced with costly repairs upon moving in. Sellers also may benefit by offering a home warranty as an extra incentive, selling their home more easily to potential buyers. Home warranties often accompany real estate transactions to offer assurances to seller and buyer alike.

What to Look for in a Home Warranty Plan

All home warranties are not created equal. Prior to choosing coverage, it’s a good idea to review key factors to ensure the policy is suitable for you.

Limitations of Coverage

Every home warranty policy includes limitations on coverage. Some policies don’t cover specific appliances, and others will have dollar caps on repairs. Careful reading of these limitations avoids surprises at the time of a claim.

Company Reputation and Customer Reviews

Not all home warranty companies are alike. Some companies are more friendly to customers, faster to return calls, and easier to work with on a claim. Pre-reading customer reviews and conducting research on the reputation of a company can save headaches down the road.

Common Misconceptions About Home Warranties

A Home Warranty Is a Substitute for Homeowners Insurance

Home warranties and homeowners insurance serve different purposes. Insurance covers damages from disasters, theft, and liability claims, while a home warranty only covers mechanical failures from normal use. Homeowners often benefit from having both.

Everything in the Home Is Covered

Structural issues, cosmetic wear and tear, or features like pools and exterior plumbing are not covered under a home warranty unless the feature is covered under the policy. Reading the coverage information carefully prevents claim confusion.

Repairs Are Always Free

Homeowners must still pay service charges even when they own a home warranty, and certain repairs exceed the coverage amount. Reading the fine print of the policy prevents surprises.

How LBC Mortgage Helps Homeowners with Home Warranties

At LBC Mortgage, we provide homeowners with more than access to the best home mortgage rates. We help them protect their investment, like whether a home warranty is best.

Helping Homebuyers Choose the Right Coverage

Home warranties can be confusing to first-time buyers. We educate them on the pros and cons of different plans so they can make a wise choice.

Recommending Reliable Warranty Providers

Not all home warranty companies offer the same quality of service. Being seasoned players in the California real estate market, we recommend clients of well-established providers with good reputations for affordable fees, quick servicing, and excellent customer services.

Safeguarding Homeowners with Their Money

A home warranty is just one part of a good homeowners financial plan. We help our clients create a mortgage plan that is affordable but offers long-term security, so they can own their home without excessively burdensome cost. Is a Home Warranty Worth It?

For California homeowners, a home warranty can prove to be a smart investment, offering financial protection against unexpected repair costs. But proper planning requires thorough research. Being aware of coverage caps, service fees, and limitations enables homeowners to gain the most out of their policy.

At LBC Mortgage, we’re dedicated to assisting homeowners in making sound financial choices. Whether you’re purchasing a new home, refinancing, or seeking protection for your investment, we’re here to assist you along the way. If you have questions regarding home warranties or require professional mortgage guidance, call us today.