When you buy a new home or rental property, you become financially responsible if something breaks. If you want to protect your wallet, you can purchase a home warranty to help cover some of those expenses. Keep reading to find out everything you need to know about home warranties and whether you need one when buying Gatlinburg homes for sale.

What Is a Home Warranty?

Many big purchases offer the option of buying a warranty that covers the cost of repair or replacement for a certain amount of time. You can get warranties on vehicles, electronics, furniture, appliances, and even homes. A home warranty is an annual contract that covers the replacement or repair of major home systems or specific appliances. Things that may be covered could include HVAC, electrical, plumbing, water heaters, washers, dryers, garbage disposals, etc. This is different from a homeowners insurance policy, which typically covers damage to the house’s structure, expenses if someone is injured on the property, and replacement in case of theft or loss. A home warranty, on the other hand, covers indoor appliances and systems due to manufacturing defects or normal wear and tear.

What Does a Home Warranty Cover?

Ac units outside of white brick home

Depending on the company you choose, a home warranty can come in a variety of plans and coverage levels. When you purchase Gatlinburg homes for sale, you should do your research to find a plan that offers the coverage you need. There are typically three types of home warranty plans: system plans, appliance plans, and combination plans. A system plan covers specific systems in your home. For example, HVAC system coverage may protect your large air conditioning unit or furnace. Appliance plans exclusively cover appliances, which may include ranges, refrigerators, built-in microwaves, garage door openers, etc. A combination plan can cover both home systems and appliances.

How Does a Home Warranty Work?

If you choose to purchase home warranty plans when you buy Gatlinburg homes for sale, you should know how they work. There’s a set process you must follow to submit a claim with your home warranty provider. If something that is covered by the plan breaks down, you can file a service request claim with the warranty company to alert them of the issue. The company will then select a service provider in their network to contact you to schedule an appointment. During the appointment, the service provider will come to your home to diagnose the problem. The home warranty company will cover the cost of repairs or replacement of the item. Each time you file a claim you’ll pay a trade call fee. This fee is like a deductible for your warranty policy. If the repair costs less than the fee, then you will only pay the repair cost.

Do I Need a Home Warranty When Buying a Gatlinburg Home for Sale?

Gatlinburg home for sale with mountain views at sunset

Home warranties have their advantages and disadvantages. When you buy a new home, you can have peace of mind knowing that your home warranty coverage protects some of your essential home systems or appliances. This can be especially helpful for first-time buyers who aren’t used to dealing with repairs. A home warranty also means you won’t need to use up your emergency fund to repair or replace covered items. Some home warranty companies will even cover pre-existing issues.

It’s important to note, however, that your home warranty plan will not cover everything, so you will need to use other coverage or savings to fix or replace certain things such as televisions or doors. There is also often a set dollar limit on repairs, so you may not receive the full cost to replace a high-end appliance. Before deciding whether or not you want to purchase a home warranty plan, do your research and look at customer reviews for different companies to help you make an informed decision.

Search for Gatlinburg Homes for Sale

Are you thinking about purchasing a home in Gatlinburg? Whether you are looking to relocate to the area or want to invest in a rental property, there are plenty of great options to choose from. Take a look at current Gatlinburg homes and cabins for sale to find the perfect new home!