Kory Habiger Highlights Understanding Home Warranty Options When Purchasing a Flip
Investing in a flipped home can be an exciting and profitable endeavor, whether you’re looking to expand your real estate portfolio or settle into a beautifully renovated property. Flipped homes often offer modern finishes, updated systems, and an overall fresh appeal. However, the rapid renovation process can sometimes mask underlying issues that only come to light after the sale is complete. One way to mitigate risk and gain peace of mind is by securing a home warranty. Kory Habiger of Kansas will delve into the importance of home warranties for flipped homes, the types of warranties available, and how to select the best option for your situation.
Why a Home Warranty Matters for a Flip
A flipped home typically undergoes significant renovations within a short time frame. Kory Habiger understands that while these renovations can dramatically enhance a property, they may also involve a rushed construction process, unintentional oversights, or the use of lower-quality materials. Additionally, the home might contain older systems, such as HVAC, plumbing, or electrical, that weren’t fully replaced during the renovation.
A home warranty acts as a safeguard, covering repairs or replacements of critical systems and appliances. Kory Habiger of Kansas explains that this can be particularly beneficial when purchasing a flip, as it reduces the financial burden of unexpected repairs.
Types of Home Warranties for Flipped Homes
- Seller-Provided Home Warranties
In many cases, the seller or flipper might include a home warranty as part of the sale to attract buyers. These warranties are often limited to one year and cover major systems and appliances. It’s essential to review the terms of such warranties to understand their scope and any exclusions. - Buyer-Purchased Home Warranties
As a buyer, you can opt to purchase your own home warranty if one isn’t provided by the seller or if you’re unsatisfied with the coverage offered. This allows you to customize the warranty to suit your needs, ensuring all major systems and appliances are covered. - Builder or Renovator Warranties
Some flipped homes, especially those with extensive renovations, may come with a builder’s warranty. These warranties typically cover structural issues, workmanship, and materials for a set period. Be sure to inquire about the specifics of any builder warranties included with the property.
What Does a Home Warranty Cover?
Home warranties vary by provider, but Kory Habiger explains that standard plans typically include coverage for:
- Major Appliances: Refrigerators, ovens, dishwashers, washers, and dryers.
- HVAC Systems: Heating, ventilation, and air conditioning.
- Plumbing: Pipes, water heaters, and other plumbing fixtures.
- Electrical Systems: Wiring, switches, and panels.
Some warranties offer optional add-ons for items like pools, spas, or septic systems, which may be relevant depending on the features of your flipped home.
Evaluating Home Warranty Options
When selecting a home warranty for a flipped property, Kory Habiger recommends considering the following factors:
- Scope of Coverage
Review the warranty’s inclusions and exclusions carefully. Some warranties only cover repairs, while others may cover full replacements. Ensure the warranty addresses both newly installed and existing systems. - Cost and Deductibles
Home warranties typically involve an upfront fee and service call fees for each claim. Compare costs among providers to find a plan that balances affordability with comprehensive coverage. - Reputation of the Provider
Research customer reviews and ratings for different home warranty companies. A reliable provider should offer prompt service and honor claims without excessive hassle. - Flexibility and Add-Ons
Consider whether the warranty allows for additional coverage based on the unique aspects of your home, such as upgraded appliances or specialty systems. - Duration of Coverage
Determine how long the warranty lasts and whether it can be renewed. Some plans offer discounted rates for multi-year coverage.
Questions to Ask Before Finalizing a Home Warranty
- What is the claims process, and how quickly are repairs typically handled?
- Are pre-existing conditions or items not meeting code standards excluded from coverage?
- Can you choose your own contractors, or must you use the warranty company’s network?
- Is there a cap on payouts for specific items or overall claims?
The Role of a Home Inspection in Warranty Decisions
A professional home inspection is crucial when purchasing a flipped property, as it can reveal potential issues that might not be apparent during a walk-through. Kory Habiger explains that the inspection report can guide your decision when selecting a home warranty by highlighting areas of concern, such as older HVAC systems or plumbing that may soon require repairs.
Purchasing a flipped home can be a rewarding investment, but it comes with unique risks that require careful consideration. A home warranty provides an added layer of protection, ensuring that unexpected repair costs don’t derail your budget or dampen your enjoyment of the property. Kory Habiger of Kansas emphasizes that by thoroughly evaluating your options and selecting a comprehensive plan, you can approach your new home with confidence, knowing you’re covered in case of unforeseen issues. When navigating the home-buying process, particularly with flipped properties, a well-chosen home warranty is not just an option—it’s a smart investment in your peace of mind and long-term financial security.
