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Common Questions Around Home Warranty Plans

October 13, 2022

Home warranties may seem like an extra expense that you may not need, but both during the time of selling or purchasing a home, these plans can save your investments.

I have home insurance but still, do I need a home warranty plan?

A lot of people misunderstand a home warranty plan with home insurance but both are different types of investments. Home insurance covers your property from perils like theft, fire, hailstorm, flood and other natural disasters. On the other hand, a home warranty plan is a yearly or monthly contract that only covers repairing or replacement costs of broken household systems like plumbing, electrical, HVAC and appliances such as refrigerators, dishwashers, ovens, washing machines, etc. Home insurance only covers the external damages to your house or property but it doesn’t cover household items like a home warranty.

Having home insurance is a must when you have a mortgage but a home warranty plan is an optional investment.

I have purchased a brand new home, do I still need a home warranty plan?

Well, you may not need a home warranty for it. There are two reasons why you may not need to purchase a home warranty immediately. First, your newly-constructed home is already covered by a builder's policy and secondly, if your home comes with all the brand new systems and appliances, they are already covered with one year of manufacturer’s warranty.

What are the situations where having a home warranty policy could be a good idea?

Do you have DIY skills?

Whether you are a new homeowner or have been settled in your forever home for years, you cannot avoid routine maintenance and repair jobs. Some homeowners have DIY skills to handle electrical maintenance works, washing machine leakages, or fixing leaky pipes. If you are not one of them, it’s important to have a home warranty plan. The truth is that some simple appliances or systems repairing jobs can also be expensive deals for you. If any of your covered home items breaks down, you just need to file a complaint to your home warranty company and they will send out a professional and registered repairing expert to your home to inspect the issues and get it fixed or repaired. All you have to pay is a small service fee called the deductible. Usually, the higher your premium amount, the lower the deductible is. You can also negotiate the deductible amount at the time of purchasing the plan.

A home warranty plan is required if you are on a tight budget-

You have already spared a lot of cash on making a down payment, closing taxes, purchasing home insurance and furnishing your home. Now you are on a tight budget and buying a home warranty plan may sound like an extra expense for you. well, a home warranty plan may be worth it in the long run. What if you discover your HVAC system is not working properly after a few months since you moved in? The repairing or replacement bills can leave a dent in your savings and this is exactly where a home warranty plan can be your ultimate savior.

So what are you waiting for? Get a free home warranty plan quote from us now.