Anything you own is probably worth protecting. That’s why there’s car insurance, health insurance, even things like phone insurance. And even more commonly, you’ve probably heard about home insurance, sometimes called homeowner’s insurance. But that doesn’t cover everything related to your home.
That’s where home warranties come in. Let’s dive in deeper because learning about what a home warranty is and what it can do for you is important whether you’re a current or prospective homebuyer.
What is a Home Warranty?
You may have already guessed that a home warranty is a type of coverage plan meant to protect things within your home. It covers situations and items that your homeowner’s insurance misses.
For example, your homeowner’s insurance covers the structural or material damage to your home in the event of a catastrophic event like wind, fire, or flooding. But homeowner’s insurance doesn’t cover events that are much more likely to happen over time, like if your oven starts malfunctioning or your washing machine decides to quit one day.
Are Home Warranties Limited to Appliances?
If you have any kind of appliance in your home, a home warranty can provide coverage if it needs to be repaired or replaced. Some home warranty plans also cover systems in your home, like air conditioning, heating, plumbing, and electrical.
Like any type of coverage, a home warranty plan can be tailored to your needs. So if you bought your kitchen appliances brand new with a manufacturer’s warranty, you can skip appliance coverage and buy coverage just for your major household systems.
Myth: I know a good handyman, so I don’t need a home warranty.
A good handyman on speed dial is a great asset, but there’s no one out there that can match the service and coverage that comes with a home warranty. For example, if your handyman comes over to fix your garbage disposal, and then finds out that it needs to be replaced, you’ll be stuck paying for 100% of the cost of that new appliance. With a home warranty, you would pay only the deductible for your plan.
Myth: I don’t have very many appliances, so I don’t need a home warranty.
Home warranties are for so much more than just kitchen appliances! If you like to live a simple, minimalistic life, your home is still full of items and systems that can be covered by a home warranty.
Imagine having coverage for your water heater, garage door opener, toilet, and even electrical wiring. Unless you’re living totally off the grid, chances are that a home warranty can provide valuable coverage for you and your home.
Myth: I bought my home so long ago that I know I won’t qualify for a home warranty.
Home warranties can be purchased at any time. So even if you’re a well-established homeowner, it’s not too late to buy a home warranty plan. Lots of people prefer to purchase a home warranty when they first buy a home, but just like anything else in life, better late than never. Plus, most policies allow you to file a claim as little as 30 days after your plan becomes active. Check the details with your home warranty provider if you’re curious about other timing guidelines.
Myth: My home and appliances are too old to qualify for a home warranty.
You’d be surprised – homes of nearly any age can qualify for a home warranty. Because the coverage is usually very customizable, you should take the plunge and get a home warranty quote before making up your mind.
What are the other advantages to a home warranty?
As we’ve seen, a home warranty provides valuable coverage for important items and systems in your home that aren’t covered through homeowner’s insurance. But the coverage comes with other advantages too. Here are just a few of the top reasons that people recommend a home warranty:
- Savings. It’s much cheaper to replace faulty systems or appliances with a home warranty. Paying a pre-established home warranty deductible for a replacement is a huge cost savings when compared to buying something brand new. This can help you keep your costs predictable. Note – if you’re a landlord, a home warranty is a smart way to make your maintenance costs more predictable!
- Convenience. When something in your home breaks down, would you rather look up three to five different companies online, schedule time for quotes, take time to compare, and then ultimately make a decision? Or, would you rather make one call to your home warranty service provider and let them find a pre-screened, qualified, high-quality company to solve your problem quickly? Time is money, and especially during a stressful time, a home warranty can help solve your problem with only minimal amounts of time required from you.
- Quick and easy. Getting a home warranty quote is simple and fast, and may not even require a home inspection first. You can even get quotes on additional home items that you’d like to cover, like a pool.
So what are you waiting for? If you’re ready to bridge the coverage gap in your home, check out more about home warranties by getting a quote today!
