Home warranty coverage provides essential protection for appliances and systems that break down due to normal wear and tear. Annual premiums vary based on coverage options chosen and number of covered items. Some plans impose dollar caps on certain appliances and systems in order to limit repair costs, so be sure to look over a sample contract before selecting your provider.

Peace of Mind

Home warranty coverage provides peace of mind against unexpected repair or replacement costs, helping reduce stress for homeowners. While some may view it as not worth investing in one, it is wise to think carefully about what potential savings a warranty could mean by not having to cover repairs out-of-pocket.

Many home warranty providers aim to minimize costs by creating an extensive network of contractors for repairs, which allows them to negotiate cost discounts that they then pass along to homeowners.

Buyers looking for a new home should ask their real estate agent whether the seller has an existing home warranty and whether it can be transferred at closing. Home warranty plans are also available to existing homeowners and can be cancelled at any time with a prorated refund; home warranties can especially help those whose appliances or systems may have outlived their manufacturer warranties; those considering purchasing one should research companies that provide it and choose a plan that fits them well.

Coverage Options

Home warranty coverage gives homeowners peace of mind knowing their systems and appliances are protected; however, before signing a contract homeowners must carefully weigh its pros and cons. What does the home warranty cover? The answer: it depends on who offers it.

Meenan suggests comparing costs and coverage limits of multiple providers before choosing one to work with. She advises asking where they source service technicians from and whether they cover remote areas.

When your water heater or air conditioning unit stops functioning and you call a home warranty company for help, they’ll send someone out to fix it. However, home warranties usually don’t cover surface or cosmetic issues like dented dishes or refrigerators or TV screens with scratches on them; nor plumbing leaks caused by tree roots; nor structural problems like roof leakage; nor do they cover new appliances that haven’t yet been installed into your home.

Exclusions and Limitations

Home warranties have their own set of exclusions and limitations, yet can also offer peace of mind. Before making your purchase decision, it is crucial that you understand these aspects. It would be wise to compare sample contracts for multiple home warranty providers as well as read their fine print to gain insight into what these plans cover versus don’t cover.

Home warranties typically do not provide coverage for systems and appliances used commercially, or secondary damages caused by leaky toilets (for instance a buckled floor caused by toilet leakage), nor natural disasters/catastrophes/wear and tear/neglect.

Home warranties can be beneficial to new homeowners who may be uncertain how well the previous owner maintained its appliances and systems, or who have depleted their savings to buy a house and need some reassurance that their investments are secure.

Cost

Home warranties cost hundreds of dollars each year, yet can save homeowners thousands over time. They help prevent homeowners from having to dip into emergency funds or pay out-of-pocket for costly repairs; plus they save homeowners from dealing with contractors and insurance companies directly.

Home warranty plans generally last one year and can be paid for upfront or over time via monthly installments, with optional coverage for items like pools and septic systems also available.

When selecting a home warranty company, look for a straightforward contract and easy claims process. Assess what each plan costs as well as any add-ons offered and compare that against the typical costs associated with repairs or replacement of appliances or systems in the home. Consider whether an annual premium would be better spent creating an emergency fund; otherwise home warranties may not provide enough value.