A home warranty is a type of insurance policy that safeguards your home against electrical or mechanical breakdowns. It covers the cost to repair or replace ranges appliances, plumbing, heating, and air conditioning systems found in your home. Typically, you can buy a warranty for up to 7 years at a time.
The benefits are vast when it comes to buying a home warranty. It’s an affordable way to safeguard your household items in the event that they need repairs. It also provides peace of mind in case you are faced with a big repair bill in the future.
1. Do you need a home warranty?
It depends on your individual circumstances. According to experts at CompleteCareHomeWarranty if you are planning to move into a new, then it’s likely that your warranty will cover the time period before you occupy the house. While some contractors offer their own warranties for protection against plumbing and electrical work, it is not as comprehensive as an official home warranty policy.
However, if you want to buy a house that is old enough that appliances may require replacement soon, then buying a home warranty can help guard against potentially large expenses in the future for repairs they might need.
Before signing up with any given company, be sure to compare prices between different providers; after all, they are competing with each other for your business! Keep in mind too that many warranties cannot cover
2. How To Buy A Home Warranty
When shopping for a home warranty it’s important to know what type of coverage you need. Most home warranty companies offer several choices.
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Basic Coverage
This type of coverage provides for smaller, more frequent repairs and deteriorates in value over time. It’s typically $400 or less depending on the old) market you are looking to cover. For example, if you only have the budget to purchase something near $200 it would be best to find this kind of coverage. This plan can cover smaller appliances like your dishwasher, oven, microwave, and refrigerator.
For example, if you only have the budget to purchase something near $200 it would be best to find this kind of coverage. This plan can cover smaller appliances like your dishwasher, oven, microwave, and refrigerator.
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Enhanced Coverage
This plan tends to be made for more expensive items, such as the heating/AC unit or washer/dryer. This can also cover appliances that are typically found in larger homes, like ceiling fans, storm doors, and shutters.
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Extraordinary Coverage
This is the best type of coverage for homeowners with expensive appliances. It’s the most common type of plan purchased. For example, it could cover more expensive items like your fireplace, water heater, or central air conditioning system—just to name a few!
3. The Benefits of Home Warranties
There are countless benefits to buying a home warranty. Some of these include:
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Peace of Mind
If you’re already on a strict budget and trying to stick to some kind of financial goal, having an extra expense that comes up unexpectedly can be quite frustrating. When you buy a home warranty, you won’t have to worry about paying for costly repairs in the future.
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Find Your Own Budget
Buying coverage annually is much cheaper than purchasing a policy that lasts for six years straight. This allows you to find a coverage plan that matches your budget and reduces the risk that you’ll overspend. Your home warranty is not just about paying for repairs.
It also covers any inconvenience, like having to take off work or miss out on important events due to an appliance malfunctioning. If there’s a problem with something in your home, your warranty can make sure it’s repaired as soon as possible.
A home warranty provides protection from costly breakdowns of essential appliances throughout the duration of the contract (typically 7 years). With one, homeowners can enjoy peace of mind and avoid unfortunate and unexpected repair costs. It’s important to remember though, that this type of coverage does not cover all household items. Make sure you know what is or isn’t covered so that your home remains fully protected.
4. The drawbacks of home warranties
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High Cost
The cost of a home warranty increases depending on the age and value of your home, as well as the cost of your appliances. For example, a house that’s over 50 years old with pricier appliances will most likely need to purchase a more expensive plan. In turn, this can be extremely pricey for younger homeowners or those who are on a strict budget.
A comprehensive policy through HomeServe USA starts at $274.85 for basic coverage and goes up from there depending on how many appliances you have in your home and their replacement costs. A good rule is to just do the math per appliance and add them all up! For instance, if you have five appliances that would require future repairs that could exceed the cost of your deductible, that’s five repair claims you’ll need to pay for if you decide to opt out.
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Lack of Coverage
Some home warranties are less comprehensive than others. For example, some plans don’t cover plumbing issues while other ones specifically exclude pools or spas. It’s imperative that homeowners read the fine print ahead of time so they know exactly what they’re purchasing and can make sure their home is properly protected.
If an appliance breaks down on a weekend or on the night before New Year’s Eve, not all coverage will have someone available to fix it immediately. The average waiting period is usually 24 to 48 hours, sometimes even longer depending on the issue at hand.
Some coverage providers may also charge a “nighttime or weekend” premium if they have to come out on the days when their business is typically closed.
Conclusion
Home warranties are not for everyone, but they’re certainly beneficial to those who are looking for financial relief, don’t ·want to worry about paying costly bills after an appliance goes haywire, and people whose homes contain pricey appliances that tend to break down easily. Keep in mind that warranties will not cover all household items—only the ones considered by the specific company as high-risk.
Those thinking of buying a home warranty can do some research first before making any purchases.
Nina Smith 
Kim Marks