Weighing the Benefits of a Home Warranty

When you invest in a home, whether brand new or beautifully aged, you want to ensure it is protected. Homeowners insurance, which is required when you purchase a home, covers significant occurrences like fire and crime. However, homeowners’ insurance will not cover specific parts of your home, like your plumbing or heating and cooling system. Instead, you can opt for a home warranty covering particular appliances and equipment if they need to be repaired or replaced.

On a basic level, one of the biggest perks of buying a home warranty is purchasing peace of mind. When you have a warranty, you are entered into a contract with a company with an established list of reputable service providers on hand, ready to assist you if you need them. Homeowners who are covered need to contact their warranty company. The company will send a contractor to assess the issue and handle the service request.

Another way your home warranty can provide peace of mind is by knowing you have it – even if your home systems are operating perfectly. For example, you never know when your dishwasher might need to be repaired or you’ll have an unexpected plumbing issue. Knowing you are covered against these costly and often unforeseen expenses can be reason enough to purchase a home warranty.

Of course, as with any warranty, there are fees involved with having a home warranty. Homeowners pay an annual premium that is often around a few hundred dollars. In addition, like a deductible works with home insurance, there is a nominal fee when a homeowner places a service request. However, when considering the cost of replacing one of your home’s major appliances or your HVAC system, the annual premium and service charges are minimal.

An important point to note about having a home warranty is that homeowners must exercise a bit of responsibility when it comes to the covered appliances and equipment. Many warranty contracts clearly state that home items must be properly maintained to qualify for coverage. If you follow the maintenance schedule for your major systems, this should be no problem. However, homeowners who purchase older homes can run into difficulties proving that the equipment they purchase within a home has been appropriately maintained. So, asking for service records and full disclosure when you buy an older home is essential if you plan to purchase a home warranty.

When considering a home warranty, think about this: your home is likely the most significant investment you’ll ever make. A home warranty is one way to provide specific protection on that investment. If you know you want to move forward with a home warranty, here are a few tips:

1. Do your research. There are many home warranty companies and contracts out there. Find a reputable company with good reviews before entering into any agreement.

2. Read the fine print. Each home warranty contract will cover different appliances and equipment in your home. Find out what might be excluded and check on required maintenance before agreeing to any coverage plan.

3. Consider the overall cost. There is no set price for a home warranty. Find out the exact cost of your annual premium and service fees before selecting and signing a warranty contract.

Once you find a warranty that fits your home’s needs, enjoy the peace of mind and protection you’re provided!