Should you have a Home Warranty?

What is a home warranty?

It’s essentially a single protection plan that homeowners can purchase to cover the cost of repairs and replacing of appliances and systems in their homes.  Unlike homeowners insurance, home warranties only cover mechanical items such as appliances & systems (like your  HVAC).  Your homeowners insurance covers items such as the structure of your home and personal household belongings. Typically, insurance also requires a major event such as a fire, flood or burglary to take place in order to receive compensation for items, whereas home warranties may only require general wear and tear or malfunction of an appliance.

What does a home warranty cover?

Practically every homeowner will experience problems from time to time with appliances and home features. After all, who hasn’t had a dishwasher or refrigerator break down at least once in their lives? Fortunately, this is where home warranties can help. Having a home warranty ensures that if your appliance breaks or become damaged, a service professional will come to your home to repair or replace the item.  The only thing you’ll likely end up paying for is the small service fee.  Home warranties typically cover plumbing, electrical, HVAC, appliances, water heaters, etc.

How to decide on a warranty: 

  • Read up on what a home warranty actually covers –  Read about what a home warranty does and does not cover. Most home warranties cover the cost of repairing or replacing a number of home appliances and systems within the home. Certain providers may also give customers the option to add extra home features such as a swimming pool to their home warranty plan. Be sure to research different providers and their offerings before committing to a home warranty plan.
  • Do you have any existing home warranties–  Do you have individual manufacturer warranties for different appliances? 
  • What is the condition of your existing appliances & systems – Do an assessment of the condition of these items. This should make it easier to decide whether or not you need a home warranty. For instance, if you have appliances or systems that are on their last legs, it’s probably a good idea to purchase a home warranty.

Home warranties are ideal for:

  • Older homes or ones with outdated appliances – After all, with older homes, it’s just a matter of time before something breaks down.  So save yourself the headaches, frustration and expense by buying a home warranty.
  • Those who are risk averse – Does the thought of a broken fridge keep you up at night?  If you’re one of those people who simply needs the peace of mind that a home warranty provides, a home warranty may be just want you need.
  • Those who are not financially prepared to make a large, out of pocket expense – Of course, new appliances don’t come cheap. In fact, refrigerators, washing machines, dishwashers and other big-ticket appliances can set you back a few thousand dollars. Unless you’re financially prepared to replace these items at the drop of a hat, it may be a good idea to purchase a home warranty.

There are many Home Warranties to choose from out there, and they are not all created equal.   Be careful and read the fine print before choosing your warranty.   The right warranty can be a lifesaver, and the wrong one can be a colossal headache. Have questions on this? Call or email me today and I'll be happy to help!