As the real estate market in Las Vegas is boiling hot, together with the entire U.S housing market, the demand for various house insurance rises. One of these “insurances” (which is in fact just a service agreement covering electrical appliances and home systems) is home warranties.
The City of Lights only boasts 600,000 permanent residents (as the 40m+ visitors to the city don’t buy insurances) but is the sixth most popular city in America in terms of home warranty searches according to this Las Vegas home warranty guide. In correlation to other big cities in the U.S, it means the level of interest for home warranty plans in Las Vegas is at least x50 bigger than it is in NYC (as NYC Metropolitan area is the home for almost 9m visitors but the number of searches is less than 10% of the number of searches in the Sin City).
Why are Las Vegas residents in search of a home warranty? The main reason is undoubtedly the ever-growing number of house sales. Home sellers are keen to use cheap solutions like a home warranty (costing $30 to $60 per month on average) to increase the value of their house. Homebuyers like to buy houses that have various insurances and warranties which were paid for already. Jenny, a real estate agent in the greater Las Vegas area has told us that “while an average house in Spring Valley area would cost approximately $250,000 – a house that had small touches put into, thrown together with a mix of insurances and warranties that other houses in the area don’t, may topple $260,000. Home warranties would cost $500 for the entire year, so it’s an easy choice for the home seller”.
Also existing homeowners are tapping into the product. Those who prefer to minimize the hassle in repairs use these Nevada servicing home warranty companies just as a form of a repair service. There is a $75 deductible cost per repair, but those who are using it know that the repairman they will get has been vetted by the company previously. As Las Vegas is widely known for its senior citizen community, it makes perfect sense that the interest for home warranties is higher there than almost anywhere else in the U.S.
Home warranties are good in theory, but are they?
A home warranty is definitely a good, usable, product. Even if you are not a senior citizen, you are likely to prefer a $75 deductible and a $50 in monthly payments over having to repair or replace an oven or a pool. The problem with the product is that many companies in this field are dishonest. These companies are not servicing clients appropriately when their clients need them. Unlike homeowner insurances, home warranties are not regulated to the same extent, and disappointed clients contact the FTC, the Better Business Bureau or share their experiences online.
Due to the above, before you consider buying a home warranty, you should be making an adequate research about the best home warranty company in Las Vegas, rather than just clicking through to advertisement.