Should you get warranty coverage over your vacation home? Getting a home warranty for rental property makes sense. This is because you use all the equipment and they may pose a problem with regular use. But, is it worth investing in a home warranty for your vacation home? Vacation homes are meant for relaxation and rest.
Getting a home warranty will certainly offer peace of mind over home systems and appliances that the guests may be using. However, would they actually use all the equipment in the vacation home while vacationing? Wouldn’t they be going out and spending time doing fun activities rather than lazing around in the home all day?
Isn’t taking a vacation a break from doing the regular chores? Will they even cook or use the dishwasher while they can try the best delicacies being served in the local restaurants? This is the reason why it is essential to consider all the influencing factors to decide whether you actually need to get a vacation home warranty or not.
If you want a quick overview of how Vacation Rental warranties can be helpful, check out the slides below:
What are the Pros of vacation home warranty for landlords
Are home warranties worth it? A home warranty for rental property comes in handy when some vital and big appliances or systems in the house break down. If the rental property is old or has older plumbing and other systems, then a vacation home warranty can save a lot of money. Home warranties cover a lot of things, but several major repairs are not entirely covered in a warranty. They may partially cover the costs associated with repairs.
Investing in a good vacation home warranty will offer protection over your appliances regardless of their age. The home systems and appliances in your vacation home will likely last for a longer time. If you don’t want parts of your second home falling apart, then you can have regular inspections to ensure that they are running efficiently and don’t pose any problem to your guests.
Vacation home warranties offer peace of mind to vacation home rental owners. There is nothing worse than appliances breaking down when the guests arrive. This can be a frustrating experience for both the property manager and the guests. Having insurance will help you request assistance. However, this may take a certain time depending on your insurance company. They may send a technician after assessing the situation.
However, you need to be careful while opting for home warranties. You need to take some time in evaluating a home warranty. Make sure to understand what it would cost and if there are any additional expenses you will have to bear. The price of the warranty is dependent on the level of coverage that you choose.
Know the Cons of investing in a vacation home warranty
The major issue with warranties is the cost factor. You will be paying towards the policy every month but may never use it. You may use it rarely during the peak season. However, it wouldn’t be worth the price that you are investing in the policy. Another major factor over getting a vacation home warranty is that it defines exclusions or certain things that may not be covered by the warranty. If excluded things break, then you need to pay for the repairs from your pocket.
Policies offered to vary from one company to another. Hence, if you are keen on getting a warranty for your vacation home, then you need to take a closer look at the coverage. Moreover, you don’t even have the choice of who would fix the repair as it is up to the company offering a warranty to take care of it. Not all landlords would prefer anybody to manage systems and equipment on their property.
Is it worth investing in a vacation home warranty?
Vacation home warranties are popular for low price technicians and delayed responses. You will have to wait until help arrives and that may not go down well with vacationers who have rented your property. They would obviously require immediate assistance because of the inconvenience that they would be facing. Nobody wants to go on a vacation and end up waiting to use a system or appliance in the vacation home that they have rented. They will obviously be disappointed by the experience and may leave negative reviews for your property management.
Vacation rentals face repairs mostly during the peak season. Air conditioning systems and refrigerators or fans are majorly used during the summers. It is during the summers that the vacation homes are filled with guests who are paying exorbitant rental rates for a few days of a relaxing vacation. If an appliance has an issue and if you don’t fix it immediately, then the guest may demand a refund for the unpleasant experience and may move to another property if they have the option.
A major problem associated with the home warranty is that it does not cover items that have been maintained in an appropriate condition. What is considered to be proper rental maintenance can be a significant gray area between warranty holders and home warranty companies? In certain cases, unscrupulous warranty companies can include a clause of improper maintenance as an excuse to deny the claims made by the warranty holders.
If you have invested in a property to use as a vacation home, then make sure to assess each and every piece of equipment. If the property is 10 years old and if the previous owner did not maintain it appropriately, then you will have to actually replace it or get it fixed. You need to understand that warranties will come with exclusions. There will be dollar limits per year and per repair set by the company providing a warranty. You need to make sure that you go through the details if you are planning to invest in one.
It is up to you whether you choose a home warranty or not. It is your personal decision. The best thing to do is to assess the condition of your home and appliances. This will help you make a wise decision.
How to determine if you need a home warranty or not?
In order to determine if the home warranty is worth it or not, you will have to consider a few parameters. A newly constructed unit is less likely to require major repairs. However, an older property may require frequent repairs. Make sure to look for good vacation home warranties that can provide you comprehensive coverage at a moderate price. Keep an eye on poor policies that are far more expensive than the prices you may encounter. Also, they may deem your claims to be invalid. Check the level of response that they offer to their customers if any claims are made. A vacation home warranty becomes necessary if you own several older properties that you plan to rent out.
Though home warranties aren’t expensive in comparison to the cost of repairs or replacement that a homeowner has to face, several years can pass without anything breaking in the home. There are chances that you may never have to replace or repair anything in your vacation home for years. You end up paying premiums for these years in exchange for peace of mind. Also, if your claim is denied despite paying all the premiums over the years, then you will feel that the money you have spent for the purpose has been wasted.
Although home warranties eliminate the need to look for a contractor when something isn’t functioning appropriately in your vacation home, it also cuts down your freedom of choosing your technician or any other expert in the field. You will have to rely on a technician that the company has chosen for you if your claim has been approved by the company. If you are not satisfied with the job done by the contractor, there is nothing you can do. You will be stuck and may have to rely on another expert at your own expense.
Moreover, the homeowner will have no say in choosing the brand or model of the component being replaced. However, as per the warranty contract, you would be provided an item of equivalent or similar quality. The entire process may seem more complicated than anticipated when a third party is involved in managing the property, be it a repair or construction work.
A home warranty for rental property may not be a perfect solution to the hidden costs and risks faced by homeowners. Before purchasing a home warranty, make sure to read the fine print thoroughly to consider the warranty carefully. Doing this will help you estimate if the warranty cover will pay off or not. Investing in a home warranty should make you feel at ease. Do careful research and find a reputable home warranty company that caters to the requests immediately. Also, check if they team up with reputable contractors or not and pay for all legitimate repairs whenever required. If you aren’t careful here, then you may lose your money and may not receive the kind of service that you wished to receive.