Regardless if you are owning or renting a home, damages are inevitable while living in it and you’ll need to do repairs. HVAC units can stall all of a sudden, faucets can get leaky and appliances may break after some time of use. Instead of having to deplete the savings to repair these damages, many people decide to buy home warranties so as to alleviate some of these repair costs. Here is a guide on what a home warranty is and how it can actually help you.
What is a Home Warranty?
A home warranty is a renewable home service plan which offers any replacement or repair services at a discounted rate for household systems and appliances that are covered. Depending on the type of warranty, the coverage as well as the contract terms can vary. It’s essential to understand that home warranties aren’t the same as a homeowners’ insurance and they definitely don’t offer the same coverage; it’s important to know their differences.
As compared to a home warranty, the homeowners’ insurance ensures that policyholders are protected against damage to their home’s structure or personal property like theft and arson.
What is Covered?
In actual fact, home warranties act as an excellent complement to your home insurance. A majority of plans will provide coverage for key components of large home systems like wate heaters, electrical, electrical and HVAC, depending on the type of coverage you opt for. There are also plans that offer coverage for appliances like stoves, refrigerators, dryers and washers. Optionally, you can even purchase add-ons coverage for things like your swimming pool, spa, septic systems, pumps and even for your second refrigeration unit.
Should You Get a Home Warranty?
Getting a home warranty can be a good way of insuring the value of your home. Coupled with a reliable homeowners’ insurance, you’ll most likely be able to fully protect your home’s asset value. Albeit, if you have already bought a new home, chances are, your current house systems would be covered by warranties provided by the manufacturer.
This holds true too for many new appliances. So, before you made the decision to get a home warranty, do check to ensure that your systems aren’t covered by warranties already.
Whether you need to get a home warranty, it’s crucial to consider the benefits of it not just in the short term but also the long term. Some of these advantages can include:
- Convenience
- Home warranties are inexpensive with average monthly fees below $100
- Tools or DIY skills aren’t required
- Greater peace of mind when purchasing a home with existing systems and appliances
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