A home warranty covers appliances and systems that break down due to normal wear and tear. There is typically a waiting period before coverage begins. Warranty home coverages usually provide a homeowner a peace of mind on service calls and repair costs because the appliances are covered.
Home warranties are typically inexpensive compared to the cost of repairing or replacing essential systems and appliances. Here are some long term benefits of home warranties: 1. Peace of Mind.
- Peace of Mind
Home warranties provide peace of mind by shielding homeowners from expensive unforeseen repairs and replacement costs. They also help ensure that the most important components of a home are in working order. This reassurance can be especially valuable for new homeowners who have depleted their emergency funds to purchase their homes.
Although a home warranty is not mandatory, millions of homeowners consider them well worth the price. For a small annual fee, they can rest assured that their most important appliances and systems will be covered in the event of a breakdown or replacement. They can avoid the frustration of having to scramble to find a service technician or beg family and friends for referrals. They can also rest easy knowing that the cost of a home warranty is usually significantly less than the repair or replacement cost.
- Unlimited Service Calls
Home warranty companies typically charge an annual service fee, which covers the cost of dispatching a trade professional (like a plumber or electrician) to your house to repair a covered system or appliance. Many also offer 24/7 support to answer policyholder questions.
As a result, a home warranty may be an excellent way to avoid unforeseen repair bills and prevent you from draining your emergency fund. Homeowners can even negotiate with sellers to include the cost of a home warranty as part of the purchase contract.
However, be sure to carefully review the provider’s contracts and policies to understand what is included or excluded in their coverage. Also, be sure to consider other costs like a trade call fee (similar to an insurance deductible) and cancellation fees.
- Covered Appliances
Having an appliance and home system repair or replacement covered by a home warranty alleviates stress if you don’t have DIY skills or are on a fixed income. However, it’s important to read contracts closely to understand what’s covered and what’s not. For example, home warranty companies typically limit how much they’ll pay per repair or for each item they cover. They also usually choose the contractor
to fix the appliance or home system and may only offer a certain make and model as a replacement.
If your appliances are newer, you might not need a home warranty as they often come with manufacturer warranties or have warranties through the home’s closing. In these cases, alternatives that provide more control over repairs or savings might be better options.
- Personalized Service
Home warranties sound like they can be a great way to cover costly repairs and replacements that would be hard to afford without them. However, homeowners should be aware that not all plans are created equal.
Many home warranty providers offer customizable options, allowing you to choose specific coverage for your appliances and systems. You can also select additional add-ons like garage door openers and septic systems.
You may be able to find a home warranty provider that offers a customizable plan for you by conducting research and reading reviews online. You can also consider asking for recommendations from trusted friends and family members. In addition, you can assess whether the company’s service is transferable if you decide to sell your home. This will save you the trouble of having to re-purchase a home warranty with the new owner.
- No Waiting Period
Whether you’re buying a home or just want to safeguard the one you already own, a home warranty can be a great investment. Home warranties are typically sold in one year increments and can include protection for a variety of appliances and systems.
In the event of a breakdown, policy holders submit service requests to their provider who then dispatches a licensed technician to repair or replace the item. Waiting periods are common in the industry and help prevent homeowners from submitting false claims or using their policies to cover items that were broken prior to purchasing the policy.
By paying an annual premium for a home warranty plan, you can avoid costly repairs and avoid having to dip into your emergency savings. However, it’s important to shop around and find a plan that is curated for your specific needs.