Home warranty —the shield you need to protect your largest investment.
When trouble arrives in the form of a leaking refrigerator, a malfunctioning air conditioner or loose wiring, panic strikes. A repair, or god-forbid, a replacement will dig deep into your pockets.
Tough days come knocking on all our doors. During such difficult times, a home warranty can come to your rescue.
Featured Image via Gleren Meneghin@glerenmeneghin
Homeowners, new or old, choose to be equipped with a home warranty to protect an investment that is more than just cement and mortar, and we agree. You need a home warranty for the times your perfectly working appliances decide to break down.
But understanding home warranties, how they work, and what they cover can get tedious. And we are here to walk you through all of that.
Today, we’re going to answer a lingering question, “Is getting a home warranty worth it?” Are you ready to find out? Then let’s begin.
Table of Contents
What is a home warranty?
When you invest in building a home or moving into a new home, you also invest in home appliances, systems, and other structural components. A home warranty comes into the picture when any of these systems, appliances or components break down or suffer from a failure.
A home warranty covers various home appliances like ovens, heaters, air conditioners, refrigerators, dishwashers and sometimes even really specific items such as Bluetooth light bulb speaker, rock salt lamps or massage chairs etc. It also includes any damage that electrical systems or plumbing may incur. You can choose a plan that will also assist you with ducts, kitchen exhaust fans, improper appliance installation, etc.
To put it simply, if your home has a warranty, then you have a service contract to help you if there comes a need to do costly repairs. Or in some cases if any items specified in the contract need to be replaced.
A Home warranty acts as safety-net in troublesome times. It ensures that your appliances and systems remain in working condition while they still need to work!
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System and Structural Warranty Included in Home Warranty
In case of confusion, here’s something about the system and structural warranties. Systems warranties protect homeowners from failures that they did not see coming. This helps the homeowner unburden the tensions of moving into their homes by letting them not worry about system failures.
These failures happen whenever the systems that worked correctly at the time of closing fail sometime after the purchase, even with the regular use of the component. A deductible or service fee is included and paid at the time of service.
This service fee covers the repair or replacement of the item that is broken. Such a catastrophic failure on home systems could cost thousands without a warranty!
With a home warranty, on the other hand, you can dust your hands off the problem by merely paying the deductible fee.
Now, a structural home warranty on a newly constructed home is concerned with your builder, thereby making it different from system warranty. If the builder cannot handle your request, then the warranty company comes into the picture.
In case any dispute occurs between a builder and a homeowner, there is a third-party negotiator to handle the concern. When this happens, structural coverage issues are directly channeled through the home warranty company until a solution is on the table.
Protects Your Largest Investment
When you move into a house or build your own, you’re probably making your largest investment.
You spend a lot of money buying things that are needed for your home to run smoothly.
From the time you wake up in a home, your shower is running, your refrigerator keeps the food edible, the gas in your kitchen is waiting to be used to cook your breakfast, lunch, and dinner.
Home appliances and systems can turn a simple closed space into a home, as they make the area under a roof a space fit for living. These home appliances and systems require protection, and a home warranty does just that.
When your home appliances like refrigerators, ovens, dishwashers, air conditioners malfunction or run its course, a home warranty covers the expenses. It also covers plumbing, electrical and other system failures.
To know more about what a home warranty includes, or doesn’t, you can check this out: What Does A Home Warranty Cover ?
Image via Ryan James Christopher@rj_christopher
Home Insurance is Not The End Game
Home insurance should not be confused with the home warranty. They are two very different things. Home insurance is protection over your home in times of disaster such as fire, floods, earthquakes, etc. It also helps you during the times when you become a victim of property crimes or any such illegal, unjust activities.
A home warranty, on the other hand, is a contract between the homeowner and the home warranty service provider. It covers damages incurred by home appliances and systems and covers repair costs.
So, having both home insurance and home warranty becomes imperative for homeowners to feel protected and unburdened by the worries of sudden expenses in case of failure of any major components of the home.
Affordable Prices
For something as important as covering damage incurred by some of your most-used appliances and systems, a home warranty comes at prices that you can actually afford.
Generally, a home warranty will cost you somewhere between $300 to $500. The costs vary depending on the type of home owned – be it a condo, a duplex, a townhouse, or a single-family detached home.
These costs are absolutely nothing when compared to your initial investment and how much a full-fledged repair would cost each time damage occurs.
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You Only Pay for Service Calls
Home appliances and systems can cost you a ton of money. The very idea of appliances breaking down and systems that keep your home together failing will burn a hole in your wallet. Upon having a home warranty, the damages can be covered by the price of just a service call!
This means that you’ll be dishing out around a meager $100 (depending upon the warranty company) to get your appliance to work like a charm once again. And the home warranty company will take care of the other costs incurred.
Size & Age Does Not Matter
Home warranties can be purchased anytime during your stay in the property, which busts the myth that the cost of home warranties differ with the age of the property. The size of the home does not affect the price either unless your property is over 5,000 square feet.
However, one must keep in mind that the additional and separate structures do not usually come in the policy.
Plan Whenever You Can
A home warranty can either be purchased when you build a new home or anytime during the course of ownership.
If you were to build a new home, a home warranty comes along with it. This warranty is included in the price of the home and is generally the builder’s choice.
However, we suggest choosing your own warranty policy, as it gives freedom to choose your own plan. Warranties usually come with various plans on what they cover. So, go with a plan that ensures coverage of all the essential home appliances and systems.
No Leaf Left Unturned
When you call your home warranty company after an appliance or home system breaks down, a technician then swings by your home for a thorough inspection. This will ensure that you are aware of every problem in your house concerning appliances and systems.
This way, you aren’t only aware of what you know already but are also informed about things that need attention. Thus, you can remain confident that nothing has been left out.
Easy Service
Upon intimation of any breakdown, the home warranty company will fix an appointment with a licensed, service provider in your area who has already been screened by them.
On the arrival of the service technician, your entire situation is assessed. You will be told in detail about what your warranty covers. You are then advised with a proper course of action to repair your appliance.
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Long-Lasting Contracts
Home Warranties usually come with a one-year contract. In this one year, any repairs that may be required by home appliances, heating systems, air conditioning systems, and plumbing will be covered by the home warranty. It can be renewed yearly.
Added Benefits
In case you want to sell your house, including the home warranty along with it can be proven beneficial. It serves as an attractive add-on to the prospective buyers. They will trust your warranty policy over any builder’s as you are a homeowner yourself!
In this way, having home insurance also helps you sell your house.
Conclusion
All in all, a home warranty is a shield to your house. A reasonable home warranty contract with a reliable company is your hero in disguise.
Having a home warranty guarantees peace of mind. It is, after all, better to be safe than sorry, isn’t it? So why take the pressure of seeing your appliances and systems yourself?
So, the next time you’re in trouble, just turn to your friendly-neighborhood licensed technician for an inexpensive fix, all with the help of a simple call!
