People are often offered a home warranty plan when they buy a new home. Both home insurance and a home warranty plan are financial protection plans to cover emergency situations and reduce the expense of costly repairs but they are different types of investments.
A lot of people still misunderstand a home warranty plan with home insurance. If you are a first-time home buyer, you should know what a home warranty plan is and if you need this coverage after having the home insurance.
What is a home warranty plan?
A home warranty plan is a yearly or monthly service contract that covers the repairing or replacement costs of the broken or malfunctioning components of specific appliances and systems in your home.
Manufacturer’s warranty is also a similar concept but it covers a specific item for a specific tenure but a comprehensive home warranty plan covers multiple appliances and systems in your home.
Generally, there are four types of home warranty plans available in the market-
The key benefits of having a home warranty plan-
What is the best home warranty plan?
The best home warranty coverage is the one that meets your exact needs. ServicePlus home warranty offers various levels of coverages for all types of appliances and items.
Generally, the following are the items covered by a home warranty plan-
Usually, the cost of a home warranty plan lies between $600 to $1,000. A comprehensive plan that covers most of your home appliances and systems might cost a little higher than the regular plans. Like home insurance, home warranty plans also come with a deductible or service fee. Each time you file a claim, you have to pay the deductible amount to your home warranty company’s registered service professional. The deductible amount usually ranges from $30 to $60 depending on your annual fees. The higher the annual premium you pay, the lower deductible you have to pay.
So, now that you know what a home warranty plan is, it’s time to make an informed financial decision by purchasing a comprehensive plan from the nation’s most popular provider-ServicePlus Home Warranty and enjoy the peace of mind of being a homeowner.