Purchasing a home warranty is one decision most home buyers are asked to make. Home warranties are different than homeowner’s insurance which mortgage companies require. Homeowner’s insurance covers things like fires, water damage, theft, and things that damage the home’s structure or contents. It does not cover normal use breakdowns of appliances or systems like electrical, plumbing, or heating. A home warranty, on the other hand, is designed to cover normal use breakdowns of appliances and home systems.

Do Home Buyers need Both Homeowner’s Insurance and a Home Warranty?

It may seem like just another questionable expense, but a home warranty can pay for itself with just one major appliance repair that is covered. A family purchasing a home with older appliances may have concerns about how well they will work, how many repairs they will need, and how long they will last. A 2-10 HBW home warranty will keep those appliance repairs and replacements at a minimum cost to the homeowner. By purchasing both homeowner’s insurance and an inexpensive home warranty, home buyers have all the bases covered.

If a disaster hits and damages the home or its contents, there is insurance to cover the loss. If an appliance breaks down, there is a home warranty plan to cover the repair with only a small service charge to pay. People who want to limit repair or replacement costs for appliances, plumbing, electrical, and heating and cooling systems that are not new should consider purchasing a home warranty in addition to homeowner’s insurance.

But, not everyone will need a home warranty. Those people purchasing a newly built home will have a builder’s warranty for the systems and construction details and a manufacturer’s warranty for the new appliances and systems.

Choosing a Home Warranty Company and plan

Finding a home warranty company that meets the homeowner’s needs and budget is important. Since many companies offer home warranties, it is important to compare the plans each company offers and the cost of each plan. Choose the company that has the plan that best meets the homeowner’s needs and has the best pricing structure.

There are two costs to consider in conjunction. There is the cost of the home warranty per month or per year. Then, there is a service fee charged for each service call. The cost might be offset by a high service charge or extensive limits on coverage. Once the costs of plans are compared, look at each contract and compare their terms and coverages. What is covered? Under what conditions is it covered? What are the coverage limitations?

Since the price of a home warranty can fall between $240.00 and $1,662 per year, it is important to compare several plans and their total costs.

Who benefits from Home Warranties?

A lot of people can benefit from purchasing a home warranty when they buy existing homes with older appliances and systems. People who do not want big appliance repair bills when they aren’t expecting them will like the coverage of service, repair, or replacement of major home appliances and home systems. It makes it easier to budget home ownership costs for the year.

People who are physically unable or just don’t feel comfortable repairing appliances or home systems that break down will benefit from a home warranty that takes care of that. Busy people who don’t want to search for home system and appliance repair companies when an appliance or system breaks down will benefit from the right plan.