Home Owners Insurance vs Home Warranty
Are you in the process of buying a house and have been told that they offer you a guarantee or that the seller is willing to pay a guarantee?
In this video I am going to explain what a guarantee is and also what it is not.
If you have not been on my page before, my name is Miguel Gómez, from Top Level Home Loans, here we take care of giving you information and strategies on how you can do to obtain that home loan.
Well, as I was saying, the guarantee of a house is that, when you go to buy, there is one thing that is an insurance,this insurance covers the house and is required by the bank, but it covers the house, more than anything, for fires, what is the minimum that the bank requires.
That insurance policy is the same as a car insurance policy, a life insurance policy, so, in that case, you can add certain things to that policy, additional, but the minimum that the bank requires is the fire.
Now, the guarantee that the seller is paying you is a little different. What this guarantee does is that it covers the house, for certain things and only for a certain time. they normally cover for a year and they cover anything big, So, it covers if the refrigerator breaks, if the microwave breaks, and the heater or oven breaks, any of those things are included.
Each insurance, each guarantee that they are giving you, has its different things, its things that it includes, its things that it does not include, but that is very good, when you are in that process, look at different companies, to see the characteristics we offer you and what things they are offering you.
The cool thing about this guarantee is that, for a normal cost of 60 to $80, this insurance or this policy sends someone to check the things that are being damaged. If the refrigerator is damaged, they send someone to check it and if they are not able to fix it then they will change it for you.
Cuando estás comprando una casa que está usada, de pronto ya tiene sus añitos, es muy bueno tener una una aseguranza de esa, una garantía de esas, porque va a cubrir cualquier cosita que se esté dañando.
When you are buying a house that is used, and it is old, it is very good to have an insurance, or a house guarantee, because it will cover any little thing that is being damaged. Normally, the first year is where you have the highest expenses of buying a house.
So we want those expenses to be minimized at this time as well. Many people and many sellers are paying for this policy, and if you do not have it yet or did not know if you had it, talk to your realtor or the person who is helping you and ask if they can offer you a guarantee.
There are times that those guarantees also give you the option to renew it, which would be excellent, because then for another 400 $500 a year, then they renew the policy and they cover you again the things that they were covering you before.
Just remember that if they are not able to fix it then they replace whatever is damaged.
So if you are in the process right now and they have not told you anything about the guarantee, ask your realtor, ask him if it is an option that you have, so that the seller can also pay it or there are times that you can also pay it and As I say, it is a very good option within the first year.
I hope this information has helped you make a decision about your home warranty, as well as understand a little about the difference between insurance and warranty.
And if you don't know if you have a guarantee on your house, remember to talk to the person who helps you buy the house to see if the seller suddenly paid it or went to the place and didn't give you the information.
It is a very good policy to have and usually pays for itself within its first year.
As always, my people, thank you very much for being here with us and we will be here for you in the next video. Follow our page and like this video, to be able to give you more information like this one. Thank you! Peace.
Miguel
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