A home warranty is a service contract that covers the repair or replacement of appliances and systems. It’s often used during the home selling process. 

A home warranty can be a good investment for homeowners who want to save money in the long run. But, it is not the only option to consider. 

Peace of Mind 

When you pay for a home warranty, you get the peace of mind of knowing that your appliances and systems are covered in case they break down. This is especially important for first-time homeowners who may not have an emergency fund built up. 

A home warranty is similar to an insurance policy in that it covers the cost of repairing or replacing household appliances and systems when they break down due to normal wear and tear. It does not cover repairs or replacements that are due to improper use, faulty installation, or negligence. 

You can customize your plan to meet your needs by choosing the home systems and appliances that you want to be covered, along with optional add-on coverage for items like your second refrigerator, pool, septic system, and more. Plans range from a few hundred to over $1,000 per year, with higher premiums typically coming with more coverage options. You can also choose to include or exclude the service fee, which is similar to a deductible on an insurance policy. 

No Waiting Period 

Home warranties allow homeowners to avoid the stress of waiting for repairs to be completed. This is especially important if they live in an area with a limited number of technicians who can service their specific home system or appliance. Home warranty companies often offer sample contracts for prospective policyholders to look over. While these sample contracts don’t fully reflect the terms of a contract, they can help homeowners get an idea of what to expect when it comes time to file a claim. 

Home warranty companies also typically have a variety of ways for customers to file a claim. Some have call centers that operate around the clock, while others provide online or app-based claim-filing options. It is important for homeowners to carefully consider the claims process of each company they are vetting when making a decision. 

While it is possible that a home warranty could end up costing more than it saves, the peace of mind that it provides is often worth the annual premium for new or current homeowners who are concerned about high repair bills. 

Unlimited Service Calls 

As mentioned earlier, a home warranty typically connects you with a contractor to

handle the repair or replacement process. You can choose the company based on their track record, price range, coverage and other factors. A quick search for reviews, consumer protection websites and the website of the state attorney general can provide valuable information to help you choose a plan that will be right for you. 

The cost of the annual premium and service call fee are often less than what you would pay for repairs or replacements that occur without the benefit of a warranty. Having a warranty may also allow you to stop worrying about whether that weird noise is a sign of something more serious or not. This allows you to focus on your work and family, and saves you time and stress in the process. This is a major selling point of having a home warranty. 

Saves You Time 

Having a home warranty can save you time by eliminating the process of finding a local repair technician and having them fix your broken appliance or system. All you need to do is call the home warranty provider, and they will send a qualified professional out to assess the damage and make the necessary repairs. 

Having a home warranty can help homeowners who want financial protection from the cost of fixing appliances and systems that break down due to normal wear and tear. Home warranties also benefit those who don’t want to deplete their emergency fund for unexpected repairs, and for first-time home buyers, it can offer reassurance. However, it’s important to note that home warranties typically don’t cover preexisting conditions or damages that result from improper maintenance or usage. What is covered by home warranty? Most plumbing, kitchen appliances, electrical etc are covered after wear and tear.  However, certain systems and appliances like swimming pools and septic systems may require additional coverage or be excluded from some home warranty plans altogether. For these reasons, it’s best to shop around and evaluate the different home warranty options available before purchasing one.


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