Home Warranty

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Owning a home is a wonderful experience, but it also comes with a lot of hard work and plenty of maintenance.

A home warranty can be a great source of protection when things go wrong due to normal wear and tear or even improper installation and it could save you quite a bit of money in the long term. 

Once you’ve asked what does a home warranty cover, you’ll feel better getting the peace of mind knowing your home is protected. These plans make it easy for homeowners to get home repairs done on the most important home appliances and help soften the cost.

To learn more about how you can lower your bills and the costs that come with buying a home, read on to find out more!

What is a Home Warranty?

A home warranty is a supplemental coverage plan that gives you lots of peace of mind. When you purchase a home, some sellers will provide a home warranty for a period of one year from the time of purchase.

For new home buyers, it’s a good idea to talk to your real estate agent and find out if the seller is offering a home warranty plan. This is a good incentive that sellers can offer so that the buyer is covered for specific components of the home in case of any pre-existing conditions.

Most home warranties will help to cover the cost of repair or replacement for various elements of the home like major appliances, and the HVAC system, and any additional coverage that can be added to a home warranty plan.

Once a claim is made, all that is needed is a service fee to have a professional come and assess the problem, make repairs, or recommend the next steps on replacing items.

What Does a Home Warranty Cover?

The home warranty company you choose will offer you several different coverage options from appliances such as faucets all the way to septic systems.  Make sure you read your service contract carefully to make sure that you’re getting the coverage level you need for your specific home.

Most home warranty plans will include the main components and systems in your home such as the water heater, the air conditioning system, and appliances like your dishwasher and refrigerator. In most cases, the home warranty coverage applies to breakdowns or emergencies, and may not cover things like normal wear and tear.

A basic home warranty plan should cover all of your kitchen appliances as well as your heating and cooling system and all ductwork. More advanced plans should also encompass things like plumbing systems and electrical systems, which could save you thousands of dollars over the life of your home.

Home warranty coverage should also include things as small as your garbage disposal, garage door opener, or even your ice maker.  All of these covered items are part of most home systems, so it’s crucial to have the right coverage in case something goes awry. 

How Does a Home Warranty Work?

If something in your home breaks down like a system or an appliance, you’ll contact your home warranty company to schedule a service call. The warranty company will directly contact one of their authorized service providers and send them to your home to assess the issue.

They’ll contact you to confirm an appointment time for the repair person to come to your home. Once the provider agrees that a repair or replacement is covered under your plan, the professional service provider will complete the work.

Once the work is done, you’ll pay a service fee or a deductible. This is in addition to the cost of your warranty plan, but most fees are small and can range anywhere from $50 to $100 per incident.

How Much Does a Home Warranty Cost?

The cost of a home warranty can vary depending on several factors such as the age and size of your home, your location, and your preferred coverage level. Most home warranty plans are very affordable and range from around $300 to $600 per year.

You can pay for your home warranty in one lump sum, but some providers may allow monthly payments or you can pay in two separate payments during the year. You may be eligible for a discount if you are renewing your plan or you’re a member of the military. Shop around to find the best home warranty plan and pricing that will work best for you and your family.

Is a Home Warranty Worth it?

When you ask what does a home warranty contract cover, it’s important to note that it is not a replacement for a standard homeowner’s insurance policy. The home warranty will cover kitchen appliances when they break down or if your water heater has a problem.  Home insurance, on the other hand, covers the structure of the home, or any damage to the house that the covered item may have caused.  Both are needed for any home buyer to ensure peace of mind.

When things break down, a home warranty is certainly worth the investment. You’ll pay a fraction of the cost that it would normally be to hire a professional plumber, electrician, or HVAC technician. Your home warranty contract should explain the service fee you’ll pay whenever you need to use your warranty.