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.
