What Is a Home Warranty?

 

Introduction

You just bought your first home. Congratulations! As you're unpacking and getting settled in, you notice a few things that need to be fixed. You're not sure what to do—should you call a contractor? What's the best way to take care of these repairs?

One option you may have heard of is a home warranty. So, what is a home warranty? And more importantly, is it the right option for you? In this article, we'll walk you through the basics of home warranties so you can make the best decision for your new home.

What Is a Home Warranty?

A home warranty is a contract between you and your insurance company that covers the repair or replacement of most major appliances and systems in your home. It can also cover certain features of your home, like the roof or plumbing.

Most home warranties last for one year, and they usually start when the system or appliance is first put into use. You can renew your warranty at the end of the year, or cancel it if you no longer want it.

A home warranty is not the same as homeowner's insurance. Homeowner's insurance protects your home from things like fire, theft and natural disasters. It does not cover repairs to your appliances or systems.

Benefits and Downsides to Having a Home Warranty

For one, it gives you peace of mind. Knowing that if something goes wrong with your home—from the roof to the appliances—you're covered can be really reassuring. It can also be helpful in emergency situations, like when you need to make a quick repair and don't have the money to pay for it up front.

There are also some downsides to home warranties. For one, they can be expensive, and the monthly fees can add up over time. Warranties also don't cover everything, so it's important to read the fine print and understand what is and isn't covered. And finally, if you do need to make a claim, the process can be long and frustrating.

What Services Are Included in a Home Warranty?

A home warranty is a contract between you and your insurance company that states they will cover the cost of repairs or replacement of any covered item in your home, up to the amount of the deductible.

Covered items typically include the structure of your home, the plumbing, electrical wiring, and HVAC system. Some policies may also include items such as appliances, flooring, and cabinetry. It's important to check with your insurance company to see what is and isn't covered in your policy.

Factors to Consider When Selecting a Home Warranty Provider

When selecting a home warranty provider, there are a few key points you should consider. First and foremost, you want to make sure that the provider has good customer service and is willing to take the time to answer any questions you may have.

Next, it’s important to look into the coverage options. Does the plan cover all household appliances? Are there additional fees or costs associated with certain services? What areas are covered in the plan? All these questions will help you determine how comprehensive the coverage is.

Finally, check out the reputation of the home warranty provider. Read consumer reviews and look for any complaints filed against them. A good home warranty provider should have a proven track record of providing quality service and resolving customer issues quickly and efficiently. .

Conclusion

A home warranty is a contract between you and your insurance company that will protect you financially in the event that something unexpected happens to your home. Typically, a home warranty will cover damage caused by an accident, like a fire or a burst water pipe, as well as mechanical failures, like a furnace that quits working in the middle of winter.

Keep in mind that there are usually exclusions to what a home warranty will cover, so it's important to read your policy carefully. If you're not sure what's covered, be sure to ask your insurance company before you buy a home warranty policy.