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What is A Home Warranty Company- Know It Here.

January 3, 2022

If you are purchasing or selling your home, a home warranty plan you should consider.

When selling a home, the real estate agent may recommend you to have a home warranty plan to entice potential buyers. Must buyers prefer to purchase a home with a home warranty plan as it enables them to save a considerable amount of money. Now you might be wondering to know the reason why you need a home warranty plan-

Why do you need a home warranty plan?

A home warranty is a contract that covers repairing or replacement costs of your critical home appliances and systems like plumbing electrical and air-conditioning and others due to regular wear and tear.

A home warranty plan comes sweetheart deductible cost and sometimes you may have to pay for additional coverage. A manufacturer’s warranty comes with each brand-new item but it usually expires after one year. Purchasing a home warranty helps you attract more buyers.

What is a home warranty?

A home warranty plan is a service contract that covers the repairing or replacement cost of your key home appliances like refrigerator, microwave, dishwasher, and critical systems such as electrical, plumbing, air conditioning unit, etc. A home protection plan usually protects the items that were in working condition at the time of purchasing the home. If any of your covered items break down or stop walking due to regular wear and tear, your plan will replace or repair the item at a reduced cost, or sometimes they fix it at no cost at all.

Since the coverage varies from component to company and plan to plan, it is really important to go through the service contract to know about the exact coverage that you will be getting after purchasing the plan.

What does a home warranty plan cover?

Generally, standard home warranty plants cover the following items-

  • Refrigerator
  • Dishwasher
  • Washer & dryer
  • Electronic garage door
  • Water heater
  • Plumbing
  • Electrical
  • Cooling & Heating

You can also get additional coverage for your swimming pool, spa, roof leakage, automatic garage door, etc.

How much does a home warranty plan cost?

On average, standard home warranty plans cost between $300 to $600. A lot of buyers pay their bills on monthly basis and the monthly cost lies between $25-$50. Additionally, you have to pay a service fee called deductible for each time a technician visits your home to fix the problem with your item. The deductible amount ranges from $50 to $100 but this amount can be negotiated at the time of purchasing the home warranty plan.

Is a home warranty plan the same as home insurance?

Absolutely no! Home insurance covers the structural damages to your home due to theft, burglary, fire, hailstorm and any other natural disasters. It doesn’t cover the home appliances and systems. Having home insurance is a must when you have a mortgage,  but on the other hand, a home warranty plan is always an optional investment choice for buyers.

When to purchase a home warranty plan?

A brand new home with all the new appliances and systems, you may not need a home warranty plan as speech item already is protected by the manufacturer’s warranty. When it comes to buying an older home, purchasing a home warranty plan will be a perfect idea as it gives you Peace of Mind if anything goes wrong with your covered item, the company will take the entire responsibility on behalf of you.

If you are looking for a based home warranty company, ServicePlus Home Warranty could be the right choice for you as it has been a prominent name in the home warranty market and it has already served a huge number of satisfied customers across the nation.