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Some Essential Information on Home Warranty Plans

November 3, 2022

A lot of people might tell you that a home warranty plan could be an extra expense for you, but during a sale of a home or at the purchasing time, a home warranty can protect your investment.


When you are selling a home, your real estate agent may encourage you to purchase a home warranty plan to entice potential buyers.


If you are purchasing a home, buying a home warranty plan can save you from paying hundreds or thousands of dollars on expensive home appliances or systems repairing.


Vital reasons, why you need a home warranty plan?

A home warranty plan covers the repairing or replacement costs of a wide range of home appliances and systems in your house. A home warranty covers home appliances like refrigerators, washing machines, microwaves, dishwashers, etc. and systems like electrical, plumbing, and HVAC.


A home warranty plan covers items that are not covered by your home insurance as it covers the structural damages to your property due to perils like theft, storm, flood, etc.


Often a lot of people mistake a home warranty for a manufacturer’s warranty but your manufacturer’s warranty only comes with brand new appliances and they cover the specific item for one year only.


A home warranty plan can help you in selling your home faster as most buyers find a home with a home warranty plan as an attractive deal.


How much does a home warranty plan cost?

Well, it depends from company to company and location to location. Usually, the costs of home warranty plans range from $600 to $1200. The more comprehensive the plan is, the more costly it is.


When you claim a service, you must pay a service fee to the technician. The service fee is also known as the deductible. Generally, the deductible amount range from $30 to $60. You can negotiate the deductible amount at the time of purchasing the plan.


Most home warranty companies allow you to pay both monthly and annual basis. You can avail of some excellent discount offers with a one-time payment plan.


Does a home warranty plan ask you to pay additional costs?

If you exceed your policy’s additional coverage, you may require paying additional money.

You must pay for repairing or replacing the items that are not covered by your home warranty plan.


When to buy a home warranty plan?

If you are purchasing an older home with appliances and systems that are approaching towards expiry date, buying a home warranty plan could be an extra layer of protection for your savings.


When not to buy a home warranty plan?

If you have a new home with brand-new appliances and systems, you may not need a home warranty plan immediately as their manufacturers’ warranties already cover all your items.


You also have the builder’s warranty covering items like plumbing, heating and cooling systems, electrical, and more.

If you are looking to buy the best home warranty plan in your city, you are on the right page. Click here to get a quote!