Buying a home is one of the largest financial investments that many Americans will make in their lifetime. Finding an affordable home warranty is one way to protect your investment and safeguard your expenses. A home warranty offers discounted or covered repairs on your home’s structure, system and appliances if they become damaged.
There are dozens of home warranty companies that offer homeowner protection. Between industry leaders like Old Republic home warranties to other contracts offered by newer companies, you can be sure to find a warranty that works for you and your family. Continue reading the sections below to learn more about home warranties and figure out if it may be right for you.
Once you buy a home, the last thing you want to do is shell out another few thousand dollars on appliance or system repairs. That’s where home warranty plans come in handy. These contracts protect your investment by covering some or all of the costs of covered repairs to your home.
A home protection plan is designed to protect several components of your home from certain damages beyond normal wear and tear. Warranties are typically guaranteed for a limited amount of time, such as one, two or 10 years.
By purchasing a home warranty, you can protect yourself from spending thousands of dollars on unforeseen repairs. You can think of home warranty plans as a kind of safety net, giving you peace of mind knowing that you – and your wallet – are protected from unexpected bills.
Home warranty companies are different from homeowners’ insurance companies. The two policies are not the same; homeowners insurance protects owners from major structural issues, natural disasters and other issues.
Home warranty plans, on the other hand, provide discounted repairs or replacements on appliances and certain types of home systems.
Whether you need a home warranty or not depends on what your homeowner’s insurance policy covers. Many homeowners purchase a warranty as supplemental coverage to protect them from expenses that their insurance will not pay for.
Getting home appliance coverage through a warranty is ideal for homeowners who have newer, expensive appliances. If one or more of your appliances is damaged, your warranty helps pay for repairs or may replace the appliance altogether.
Home warranty companies work with approved service providers to make these repairs. When something that is covered by the warranty breaks or no longer functions properly, homeowners call the warranty company.
Then, the warranty company sends a local service provider to inspect the problem and determine if repairs (or replacement) may be necessary. Depending on the warranty, homeowners may need to pay a predetermined service fee.
The cost of home appliance coverage varies depending on a few factors, such as the company you choose and the type of plan available. Continue reading the next slide to learn more about home warranty coverage options.