A home warranty policy provides coverage for your critical home appliances and systems against any unforeseen breakdowns. Homewarranty companies offer a service contract that repairs or replaces the covered item that breaks down or starts malfunctioning due to regular wear and tears.
One of the key advantages of having a home warranty plan is that every home warranty company has a list of professional registered service contractors that they trust. They are your one-stop solution for contractors.
Is a home warranty plan the same as home insurance?
A lot of people misunderstand home warranty insurance as home insurance but they both are different types of investment options. Home insurance provides coverage for a home’s structural damages due to theft, fire, hailstorm, and any other natural disaster but like a home warranty plan, it doesn’t cover the components inside of your home.
Having home insurance is a must when you have a mortgage but a home warranty plan is always an optional investment plan for the buyers.
How much does a home warranty plan cost?
Most home warranty companies offer base plans that range between $400 to $600. Usually, these plans cover home appliances like refrigerators, washers and dryers, heaters, dishwashers, microwaves, etc and systems like electrical, plumbing, air conditioning, etc. You can have additional of coverage for your automatic garage door, spa, swimming pool, roof leakage by paying some extra amounts.
If you are looking for coverages for both of your home systems and appliances, you have to go for a comprehensive plan that would cost you around $900.
You can purchase a home warranty plan at any time. You can even buy it long after the closing is done. It is still a better idea to do a home inspection to know the conditions of your existing appliances and systems before your home warranty company offers the coverage. Always remember one thing that home warranty companies do not give coverage for items with pre-existing conditions or that not have been maintained properly. This is the reason most homeowners purchase home protection plans right after the closing as most home inspections are done during the time home buying process.
Is buying a home warranty plan worth the money?
Of course, you don’t know when any of your important home systems or appliances stop working due to regular wear and tear. Imagine a situation, your room heater stops working during a chilly winter month. What would you do? You have to search for a local repairing professional online based on all the reviews and ratings and then you have to make an appointment to fix or replace the item. Most repairing or replacing jobs are an expensive affair now and you may not have the cash ready all the time for handling such unforeseen problems. When you have a home warranty plan, all you have to do is inform your service provider, and based on your urgency, they will send out one of their registered professionals to your doorstep to fix the issue. You just have to pay a small amount of service fee called a deductible. If you have an older home with aged appliances and systems, having a home warranty plan is totally worth the money. If you have a new home with brand-new items, you may not require a home warranty plan as most brand-new appliances and systems come with one year of manufacturer’s warranty.
So, now you might have realized one thing a home warranty plan can give you peace of mind knowing the fact that all your major appliances and systems are protected against any future breakdown due to regular usage.