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Investing in a Home Warranty

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By : Sonia Smith    99 or more times read
When you buy a home, you are making the decision to invest a great deal of money. Since your home is one of your greatest assets, you should make sure that it has ample protection and security. A home insurance could cover several things but does not cover everything in your home. A home warranty plays a big role when it comes to providing an added layer of protection on the things inside your home that will allow you to save money in the end.

As homes age and the HVAC, plumbing and appliances as well, they need repairs more often. With a specific price, the warranty covers various items such as home systems and appliance should they break or need maintenance. You could purchase a home warranty when you purchase a home or sell one. In the case of a home sale, the buyer, seller or the real estate agent may purchase the plan as part of the sale. Every warranty varies so it is not possible to generalize what items are covered and what are not.

If you are thinking of buying a home warranty plan, it is important to do your research first. Consider talking to a few companies providing home warranty plans so an actual person could explain the coverage plan to you. Do not forget that home warranties do not cover everything to you should shop around and understand what you are paying for. A home warranty will cover repairs, replacement and repairs of the electrical systems, appliances, plumbing and heating. These are things which in general are not covered by a homeowners’ insurance, so the cost of repairs, replacement and maintenance will fall on you as the homeowner. A home warranty plan is valuable if you purchase the right kind of policy.

A standard home warranty will cost around $200 to $600 annually. It is fairly affordable and could save you money in case of a major repair of replacement. Again, you should review several home warranty companies and the agreements they offer. Before you buy, ask for quotes and compare prices from various companies. Read the fine print and also ask for recommendations from family, friends and colleagues. This could help you decide on which company offers the coverage that you need.

When a home system or appliance stops working, you should contact your home warranty provider immediately. They in turn will contact a service technician they have a contract with and will set up an appointment with you. The service technician repairs or replaces an appliance or home system based on the contract of agreement. You as the homeowner will pay the one time service fee that is less than $100. Some items in your home that are covered include the oven, dishwasher, furnace, garbage disposal, range, duct work, electrical system, air conditioning, water heater, indoor plumbing stoppages, ceiling fans and telephone wiring. Even though a home warranty could cost you upfront, the amount you will be able to save later makes it a worthwhile investment.

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