What is a Home Warranty and Its Benefits?
Purchasing a home warranty can provide homeowners with peace of mind. When something breaks, they can call the company, and a service contractor will be sent out to diagnose and fix the problem for a fee.
However, a home warranty is not without its limitations and exclusions. Here are a few reasons why it might not be the best option for your home:
Peace of Mind
A home warranty can give you peace of mind knowing that you have an affordable resource for covering appliances and systems that break down or need to be replaced. It can also take the stress out of having to find a reputable technician in your area to do the work, so you can rest easy knowing that it’s taken care of.
Having a home warranty can be especially valuable to new homeowners. Often, the warranty is offered during the real estate transaction as an incentive for closing the sale or is included by the seller to provide buyers with a peace of mind and confidence in their new home.
As you decide if a home warranty is right for you, keep in mind that policies do have limitations and exclude some items, so it’s important to review your coverage options carefully. However, for many people, a home warranty is worth the investment to have the peace of mind it provides. Look at your appliances and research the best furnace brands or top dishwashers that need replacement. These kinds of examples will set the tone for the type of warranty you may need.
Money Savings
Purchasing a home warranty can be a good financial move, especially for new homeowners. A home warranty protects homeowners from expensive, unforeseen repairs and costs. Many homeowners can save money by purchasing a home warranty as part of the closing process or within the first 30 days of homeownership.
Often, home warranty providers can send professionals to your house to fix your appliances or systems in as little as 24 hours. This can be a huge relief for any homeowner who is worried about their budget. Having a home warranty can also prevent you from draining your emergency fund to pay for unexpected repairs.
However, it’s important to read the fine print to know what’s covered. For example, some home warranty companies will deny claims based on improper maintenance of the system or appliance. So it’s important to keep up with routine maintenance and cleaning. If you have a home warranty, you can get professionals to your house quickly and without the worry of draining your emergency funds.
Time Savings
Most home warranty companies have a variety of plans for homeowners to choose from, including customizable options that cover items not found in every house (like a garage door opener or a built-in microwave). This allows you to have a plan that is
perfectly curated for your needs.
If your dishwasher or fridge breaks down, you’ll only need to make a phone call and the home warranty company will send someone out to take care of it. This is a big relief for many homeowners. Keep in mind that all coverages vary from company to company and it is not the same for everyone.
Home warranties are great for hands-off homeowners who don’t want to deal with tools and prefer to leave repair and replacement jobs up to professionals. They also benefit prospective home sellers who can include the transferable warranty in a sale agreement to sweeten the deal. Home warranty costs are typically only a few hundred dollars per year, making them far less costly than an appliance or system repair bill. Some companies even offer monthly instead of yearly plans to suit different budgets.
Personalized Service
Home warranty companies don’t have to be regulated by the same authorities as insurance companies, but they must make enough in premiums to balance out what they pay out for repairs and replacements. Most home warranties cover systems and appliances, and some include add-ons.
Typically, a homeowner makes one call to the home warranty company when something breaks down and they will send someone out within 48 hours to address the problem. The service technician will take a look at the broken item and either repair it or replace it.
A home warranty is a valuable tool to have, but you must shop around to find the best provider for your needs. Check out consumer reviews, your state’s attorney general website and other resources to determine which company is the right fit for you.
