With summer temperatures on a continuous rise over the past three decades across the United States, a home service contract (often referred to as a home warranty) can be a buyer’s best way to stay cool – from the pressures of the housing market to the need for the new home’s A/C unit to keep running smoothly.
Forecasters tell us this summer will bring even warmer and drier weather. With the red-hot housing market meaning homes are getting snatched up quickly, buyers don’t always have the luxury of time to conduct a careful check of available homes. That’s why the Service Contract Industry Council (SCIC) recommends that consumers buying a new home try to include a home service contract in the deal or invest in one themselves.
"Consumers already face the significant financial responsibilities that come with home ownership – and when you suddenly need to repair or replace appliances, you might need to pay anywhere from $700 to $3,500 out of pocket," said Tom Keepers, executive director of SCIC. "These pricey repairs are impossible to predict and difficult to prepare for without a service contract. Home service contracts provide a safety net from the unforeseen financial hiccups that come with owning a home."
A service contract protects homeowners from the budget-busting system and appliance repair and replacement costs and also relieves the hassle of finding qualified repair contractors. Typical home service contracts cover much-needed systems like air conditioning, electrical, and plumbing, as well as dishwashers, refrigerators, and more. The customizable plans offer convenient repair resources right at the homeowner's fingertips for only a small service fee at each repair visit.
Research shows that contract holders, on average, use their home service contracts more than twice every year. Home service contracts also improve the home’s resale value, and the National Association of Realtors recommends that homebuyers begin the process of looking for warranties before they even commit to a home.
With the forecast predicted that June through August will be among the hottest summer months in recent history, there's no better time to protect your home’s A/C and other systems and appliances with a home service contract.