A home warranty generally provides home repair services, repair, or replacement of major home appliances and systems. It also offers a financial buffer when expensive home items malfunctions, and can further expand the manufacturer’s warranties even after they expire.
The warranty company will connect you to the affiliated contractors so that you don’t have to go through the hassle of finding individual contractors by yourself rather your only need to make a single call if there’s any problem with a home system or appliances covered in your home warranty plan.
Moreover, a home warranty pan may also provide an allowance to help cover the cost of replacing any damaged item covered in the plans. In this article, we will share everything you need to know about a home warranty plan.
What is a Home Warranty Plan?
A home warranty plan is technically a consumer convenience product that can be purchased to reduce the risk of facing large out-of-pocket expenses if a system or appliance fails since such things are never in our control.
A lot of people tend to confuse a home warranty plan with that of homeowners insurance when in reality, they both serve different purposes. Homeowners insurance helps cover protect damage from damage caused by thefts, fire, wind, hail, and vandalism. It further covered liability for guests who were injured while on the policyholder’s property.
Whereas, a home warranty covered home appliances and systems that simply malfunction and aren’t benign covered in homeowners insurance or has no warranty. Despite the condition and age of your home, you can buy a home warranty plan from a home warranty company at any time.
That said, home warranties are often purchases when a real estate transaction takes place either by an incentive taken by the buyer or seller.
Ultimately, in most cases, a home warranty is usually a part of a protection program or fire damage recovery by Steamatic for your home. Always be mindful that a home warranty only covered what’s names in the contract and not everything of your choice.
Certain home warranties cover appliances, as compared to others that cover big systems like the HVAC. Of course, there are warranties that cover both. Overall, the best home warranty plan is one that neet the needs of the appliances and systems conditions and age.
Is a Home Warranty Plan Worth It?
This is a rather common question a homeowner always asks himself. Home warranties might be worth it in cases where the appliance’s manufacturers’ warranty has ended, or if an individual wants to mitigate the risk of repairing or replacing heavy items by themselves.
A home warranty is also a good idea if someone’s planning to see their home, and ants to add financial protection if an item ever breaks down before a deal is closed. A home warrant could also be worthwhile if you are thinking of buying a home and are looking for something that will cover unexpected repair or replacement costs once you move in.
In fact, if you are on a tight budget, you may appreciate only have to pay a fixed annual or monthly fee for your home warranty, as compared to worry about forking out money for unexpected expenses.
However, the main reason why people feel home warranties aren’t that worth it is the cost to manage the risk because, in all honesty, the cost of purchasing a home warranty plan is exorbitant.
That said, a home warranty plan is an added convenience. It provides peace of mind and also helps cover unexpected expensive costs that you most likely don’t have a budget for. If you afford out-of-pocket expenses, then there may not be a reason for you to purchase a home warranty plan.
How Long Does a Home Warranty Last?
A basic home warranty plan should last for a minimum of one year, and you usually have the option to review. In fact, some well-known warranty companies also offer home warranties that last for two to three years, with a higher cost of course.
It’s recommended that you review your home warranty plan’s coverage every year because your coverage needs might have changed after a year. For instance, your appliances or systems manufacturer’s warranty might be expecting, or your HVAC might be struggling, and therefore your coverage needs must have changed.
Also, do take into consideration all the items you purchased recently. A home warranty plan has to evolve to meet your current coverage needs.
Conclusion
A home warranty is beneficial if you are looking for financial protection in instances where appliances or systems malfunction while using. Essentially, a home warranty plan can help cover out-of-pocket expenses for you in case you don’t have the budget for it.
