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What is A Home Warranty Plan and How Does It Work?

November 22, 2022

A home is a significant investment in one’s life and that's why most homeowners have home insurance to protect it. Home insurance covers the structural damages to your property due to perils like theft, fire, hailstorms, and other natural disasters. But what if any of your critical home appliance or system breaks down due to regular usage? Home insurance doesn't cover the repairing or replacing of broken home appliances and systems. The fact is repairing or replacing a costly appliance or system can take a toll on your savings. This is exactly where a home warranty policy comes in as your savior as it covers your home appliances and systems.

What is a home warranty and how can it help you?

A home warranty is not a typical warranty, rather it can be explained as a Service plan that covers the cost of repairing or replacing a broken home appliance or system due to regular wear and tear. It gives you an extra layer of protection beyond your home insurance. 

If any of your covered items break down or stop working, you have to file a service request to your home warranty company and they will send out a professional repair technician to your doorstep to inspect the issue with a broken item. Based on the inspection, your home warranty company will decide if they would repair or replace the broken component. In return, you have to pay a small amount of service fee or deductible. you can negotiate this deductible amount at the time of purchasing a home warranty plan.

Why would you purchase a home warranty plan?

Home warranty plan offers 3 crucial benefits and in this article, we are going to talk about these-

Eliminates the chance of paying out-of-the-pocket-

Major home appliances or systems may cost several hundred to thousands of dollars. With a home warranty plan, you can enjoy Peace of Mind by knowing that if anything goes wrong with your covered item, your home warranty company will take the responsibility to repair it or replace it for you.

You can always be ready for unexpected expenses:

home appliances and systems breakdowns are unexpected. If you don't have an emergency fund, it could be a big problem for you to manage a major repair or replacement without a home warranty plan. the best part of having a home warranty policy is that you can get all the expensive coverage just for a yearly or monthly premium and a small service fee. A good home warranty plan always keeps your budget protected from unexpected events.

a home with a home warranty plan sells faster: 

If you are planning to sell your home for a good price and want to entice potential buyers, a home warranty plan can help you hear too. How? According to real estate surveys, American home buyers always prefer to buy a home with a warranty plan.

Just make sure that you are going to purchase a home warranty plan from a reputed company instead of picking up a random company recommended by your realtor. If you are looking for the best home warranty company in the US market, you are on the right page. Click here to know more about ServicePlus Home Warranty.