The concept of a home warranty is vague and not-so-clear to many. Even the most experienced homeowners can fall short of words if asked to describe what a home warranty covers. Seeking help, a homeowner reaches out to a known insurance agent for help. Of course, this is not an obvious resort. However, many people do.
You either get a detailed insight on home protection plans and what it covers. Or you are tricked into understanding a deluded concept of home warranties and how it is not an essential investment.
Let’s clear the air first. A home warranty and home insurance are very different. Home insurance offers coverage against the structural features of the home. It comes in handy only when your property has succumbed to disastrous events of fire, theft, cyclones, or any other natural calamity.
A home warranty, on the other hand, secures most of the major mechanical systems in your home. Plumbing system, electrical, the HVAC system for example. A home protection plan also offers coverage on regular everyday appliances. Of course, these damages are not paid by home insurance companies.
To understand how a home warranty works and the perks it offers, you must pay heed to the understanding of the basics.
Answer: A home warranty or a home protection plan is a contract of service, valid for one good year. You can renew the same once the term lapses and keep the ball rolling. The protection plan covers appliances and critical mechanical systems in your home.
Since it is very normal for appliances to malfunction and systems conking out, staying on point with a maintenance schedule is a need of the hour. Without a home warranty, paying for the maintenance of systems and appliances is a mammoth expense. But, if you have invested in a home protection plan, you can call up and schedule maintenance or security checks anytime without worrying about paying out a fat cheque.
It is ideal to buy a home warranty soon after you purchase the property of your dreams. You can sign up for a home protection plan as soon as you clinch the deal.
Answer: There are no specific names for home warranty plans and types. But there are options to choose from. The protection plan varies in terms of the coverage it guarantees and the price you pay for it. To help you with a clear picture, here is the difference.
Affordable Home Warranty Plans - As the name suggests, protection plans to fall under this category are inexpensive. What you must remember though, is the coverage of these plans are very specific and restricted. It might just offer coverage against one or a couple of appliances. So ideally, these plans do not do you much good but also doesn’t hurt your pocket.
Fairly Priced Plans - The home protection plans certainly cost a little more than the former. It also provides coverage against multiple systems and appliances in the house. From refrigerators to microwaves and dishwashers, you can protect most of your appliances using these plans. It is recommended if you are concerned about your budget but also, wish to make a worthy investment.
Comprehensive Home Warranty Plans - Investing in comprehensive warranties are the best bet. These plans reward you with optimum coverage on a wide range of appliances and systems in your home. You could easily restore the HVAC system or the heating system at your place without shelling out a cent. This is the best option if budget is not a concern. Do not forget that although it might seem like a pricey investment, home warranties save you big bucks in the long run.
Answer: Investing in home warranties could range from being pocket-friendly to an overly expensive buy. You can end up spending anywhere between $300 to $1000 a year. Much depends on a few factors like:
- The company you choose to go with
- The extent of coverage it offers
- The square footage of your property.
It is no secret that the bigger your property, the costlier is your home protection plan. You can either pay for the warranty upfront. Or choose to pay in monthly installments if that floats your boat.
Read about a home warranty before you make the call. It is undeniably a great way to stay clear from unforeseen repair works. If you are not already aware, replacements and mending home systems could cost you riches. A good home protection plan saves you from unnecessary expenses of such sorts.