The Benefits of Buying a Home Warranty

A home is one of the most important things you will ever invest your time and money into. Therefore, it is only natural for homeowners to do whatever they can to keep their homes protected. One of the best ways to safeguard your property is to get a home warranty. What is a home warranty and what are the benefits of buying a home warranty?

What is a Home Warranty?

A home warranty is designed to protect homeowners from expensive repairs and help them keep everything from kitchen appliances to plumbing systems in excellent working order.

Although home warranties have been around for several years, there are still many people who don’t know much about them or how beneficial they can be. That is why we have put together this helpful guide that explains all the great benefits of having a home warranty.

How Does a Home Warranty Work?

Before we get into the benefits of having a home warranty, it’s important that you understand how these warranties work. When you purchase a home warranty, and a covered system or item inside your home needs repair, you can file a claim and your home warranty provider will send out one of their technicians to check out the problem. As long as the repair is covered under your warranty, the plan will help to pay for either the repair or replacement of the appliance or system.

Home warranties are contracts and most of them have a term limit that’s either monthly or annually. Homeowners can usually have their warranty renewed whenever they expire to ensure their home remains protected.

The Benefits of a Warranty for New Homeowners

Home warranties can be beneficial to owners of both brand-new homes and older homes. While your warranty coverage will not change based on the age of your home, the reasons why you may consider taking out a warranty may differ due to how old your home is.

If you have a newer house, the probability of needing extensive repair work is naturally less than if you have a much older house. Still, there are some exceptional benefits to having a home warranty if your home is considered new.

Added Protection for Expensive Appliances

If you have recently bought a brand-new home, you likely have new, state-of-the-art appliances in your kitchen. Your home warranty can keep those appliances protected if they break down and require a repair, or if they need to be replaced. Most home warranties will take care of repairs for a broad range of common household appliances, so you can be assured that your new refrigerator or range oven will operate efficiently for years to come.

Coverage for Home System Repairs

Even though newly built homes have fewer issues than older properties with their electrical systems, it is still common for there to be problems at times that need to be fixed. If you are having difficulty with your garage door not functioning properly or you are experiencing plumbing issues, a home warranty can send out a technician to assess the issue and perform the necessary repairs.

Access to Common Handyman Services

Many home warranty plans provide access to handyman services. This can be very useful if you want to keep the exterior of your home looking pristine. These individuals can provide services like keeping your patio or deck washed, mounting your new flat-screen TV, or installing a ceiling fan in the living room.

The Benefits of a Home Warranty for Older Homes

If you own an older home, you run the risk of various home systems breaking down or your appliances requiring repair or replacement. It is also likely that your home may need more cosmetic work than what you can do on your own.

Here are a few great benefits to having a home warranty if you have an older property.

Essential Repair or Replacement of Home Systems

Electrical and plumbing systems in older homes will wear out over time, even if they are well-maintained. If these systems start to fail due to age, a home warranty plan can help pay for the necessary repairs or a full replacement.

Repairs for Your Older Appliances

Anytime your home’s older appliances start to malfunction, there’s not much you can do aside from replacing them with something new. A home warranty can help you get the replacement appliances you need without having to break the bank to do so.

Improving the Look of Your Home’s Exterior

Older homes will often have many issues with their exterior that need to be addressed. If your home warranty offers handyman services, you can use it to ensure the outside of your home looks as great as the interior. These helpful services can include everything from cleaning out gutter systems or pressure washing the exterior of the home to landscaping and window cleaning.

What Is Generally Covered by a Home Warranty?

Home warranty plans will differ from one company to the next, but the following items are generally covered by all home warranty providers.

• High-end, modern appliances: Some warranty plans offer higher limits so that you can cover more luxurious and expensive appliances.

• Septic systems: A home’s septic tank and system can often be added to a warranty plan as an optional upgrade.

• Window air conditioner units: These appliances are covered by some home warranty plans.

• Ice Makers and wine fridges: These small appliances may be covered under optional or additional refrigeration coverage added to your plan

• Water softener or filtration systems: These are usually offered as optional upgrades for your plan.

• Additional coverage for plumbing: Some home warranties will offer an optional upgrade and extended coverage for things like external pipe leaks or repairs and replacement for pipes that are encased within concrete.

Additional home warranty plan coverage for your home systems may also be offered by the company you choose. This can include things such as ductwork, central air conditioning and heating repairs, attic, ceiling, and exhaust fan repairs, and any work needed for central vacuum systems.

What is the Difference Between a Home Warranty and Home Insurance?

It is common for many homeowners to confuse a home warranty with a homeowner’s insurance policy. While they may sound like the same thing, they are actually very different.

Home warranties are designed to help out with various maintenance tasks like repairing appliances or taking care of plumbing issues.

A homeowner’s insurance policy, however, is designed to protect your home and the property it sits on from damages caused by natural disasters, such as a hurricane destroying your roof.

While home insurance will help pay for damages caused by extreme weather, it will not cover the cost of damages caused by everyday wear and tear. That is where a home warranty can be helpful.

The key differences between home warranties and home insurance are:

• A home warranty is optional while homeowner’s insurance is required for the new homeowners to purchase by their lender.

• A home warranty requires you to pay a service fee while a homeowner’s insurance policy requires you to pay a deductible.

• A home warranty is a service contract that will pay for part of the total cost of home repairs or the replacement of systems or broken appliances. A home insurance policy will provide you with protection against damage caused to your home by natural disasters.

• A home warranty offers coverage for your home’s appliances and systems while a home insurance policy provides coverage for your home’s structure, your personal belongings, liability protection, as well as additional expenses.

What Is Not Covered by a Home Warranty Plan?

Home warranty plans will vary based on the company and the location. However, some common circumstances are generally not covered by most home warranty plans. Therefore, you should keep this information in mind when you are choosing a home warranty plan and ask the representative exactly what is and is not covered.

Damage Caused by Acts of Nature

Home warranty plans usually will not cover damage to a home caused by a natural disaster such as a hurricane, heavy storm, flooding, or earthquake.

Damage Caused by Pests

Damage caused by common household pests such as rodents or termites is typically not covered by a home warranty plan, however, some companies will offer coverage for the extermination of pests, but not the damage they caused.

Installation, Repairs, or Replacements for Solar Electric Systems

Most home warranty plans will not cover the cost of installation, repair, or replacement for any solar electric systems.

Repair or Replacement for Propane Systems

Home warranties will usually not cover the repair or replacement of faulty propane systems.

Your Home’s Pre-Existing Conditions

Home warranties will not pay for problems or issues that your home had before when your coverage began.

Having a home warranty can be very beneficial whether you have a new or old home. By purchasing one of these plans, you can save yourself time and money when it comes to unexpected and costly repairs.

If you are in the market for a new home, get in touch with us today to hire the very best in the industry.