The Benefits of Having a Home Warranty

Costs associated with home repairs can be tough to swallow. Cover your repairs and breakdowns with a home warranty.

Owning a home is a dream for many folks, but home repairs can be a bit of a nightmare. When items break, homeowners have to come up with the cash to get the items repaired and find someone willing to do the work. All of a sudden, that dream come true becomes a headache, leaving many people disenchanted with the home they once loved.

Those same folks may be better off covering their investment with a home warranty. These policies can protect homeowners against some expensive repairs and exhausting contractor shopping, and the benefits don’t stop there. Keep reading to learn about how a home warranty works and the benefits they offer.

How a Home Warranty Works

A home warranty is a form of coverage that can protect certain systems or appliances within a home. To gain coverage, the homeowner shops around for a policy and then chooses the terms of the policy based on the packages the home warranty company offers. They’ll choose which items they want to be covered by the warranty, and then pay for the premium over the course of the year.

When a covered item breaks, the homeowner can contact the warranty company and file a claim. The warranty company will then assist the homeowner with scheduling a time that one of its contractors can come to the home to assess the issue. Covered repairs are mostly paid by the warranty company, though the homeowner often will be expected to pay a small deductible or service fee.

Warranties will vary based on the coverage for appliances and systems that the warranty company offers. Some might offer roofing or septic coverage, while others might prefer to focus the coverage on items within the home.

The Benefits of Home Warranties

Covering a house, its systems, and other features with a home warranty might seem like it’s all about peace of mind, but there’s more to it than that. The following are some of the most significant benefits of getting a home warranty.

1. Flexible Coverage

In many cases, homeowners can choose the level of coverage they’d like their home warranty to offer. They can choose coverage for basic items like appliances, or upgrade their coverage to include electrical, plumbing, and heating systems. For top-tier coverage, many home warranties will cover the items just mentioned, as well as air conditioning systems, garage doors, and other regular items that might fail. Different home warranty companies offer varying coverage, so shopping around is important!

Adjusting what the policy covers allows the homeowner to tailor their warranty to their budget. If the homeowner is worried about the condition of their hvac system, they might consider paying extra for hvac coverage (if the warranty company offers it). But, for those with hvac systems still under warranty with the manufacturer or installer, it might make more sense to forego coverage, save some money, and reconsider a few years down the road.

2. Simplified Repair Process

When something goes wrong in a home that isn’t covered by a home warranty, the homeowner has to solve the issue on their own. On top of coming up with the money to pay for the repair, they also need to find someone that they can trust to come to their home and fix the problem. That can be stressful, particularly when it comes to specialized or high-dollar repairs.

With a home warranty, the homeowner can often leave much of that stress to the warranty company. Should a covered appliance or system fail, the homeowner typically calls or goes to the company’s website to file a claim. In most cases, the home warranty company will find a contractor to handle the job, and all the homeowner has to do is schedule a convenient time and pay the applicable deductible if there is one. The rest is between the contractor and the warranty company.

At times, there may be specialty repairs that require longer lead times or parts that might not be readily available. In those cases, the warranty company is also at the mercy of the contractor and the supply chain.

3. Money Savings

Most home repairs are expensive. Replacing a refrigerator or dishwasher might cost $1,500 or more, while some parts and labor involved in fixing a boiler, furnace, or other hvac system might cost into the thousands of dollars. Without a home warranty, the homeowner will have to cough up all of that cash themselves, or put it on a credit card and deal with the extra bill month after month while interest piles up on the balance. After a few repairs, the amount of money tied up in your home can feel overwhelming.

With a home warranty, the homeowner may be liable for less money out of pocket. First, home warranties can be very affordable. For a relatively low monthly payment, a warranty can cover the systems and appliances that the policyholder chooses. Should something go wrong, the homeowner can start the claim process. If the item fits within the coverage, the home warranty company will typically handle the cost with the contractor, less the deductible the homeowner may owe.

However, do understand that there are caveats. The homeowner will often have to pay a service fee or deductible for each repair. This fee is often in the $50 to $100 range, and it’s typically payable to the contractor. But, as long as the repair is over the deductible amount, it’s worth making the claim with your home warranty company. Depending on the policy you choose, there may be a limit on the amount the warranty company may cover.  Even still, homeowners will come out ahead by having coverage, even if it only covers part of the repair.

4. Peace of Mind

For first-time homeowners or folks in older homes, just knowing there’s a home warranty they will be able to fall back on can provide peace of mind. First-time homebuyers might not know what to expect, or they might’ve wrapped all of their savings up in the deal to purchase the home. Also, folks living in older homes know that it’s only a matter of time before something goes south.

Home warranties can quell some of those concerns. First-time homebuyers know that for a small fee each month, they can receive protection against unforeseen issues, giving them time to learn the ropes and save their cash. For older homes, knowing there may be coverage for expensive issues can help these homeowners rest easy with less worrying about how they’ll pay for the job or who will do the work.

If You’re Ready to Protect Your Home, We Can Help

If you’re ready to protect your investment with a home warranty, we can help. We’ll connect you with a trustworthy and friendly home warranty company who offers various levels of coverage. They’ll set your home up with the customized coverage you choose tailored to your budget and circumstances, allowing you to feel better about the uncertain future and the repairs that might need to be paid for. Let us help you find that peace of mind by filling out a short form and matching you with a home warranty company.