What is a home warranty?
We are going to explain what a home warrant is and Home Warranty Costs. A home warranty is a year-long, renewable home service plan that helps with the cost to repair or replace parts of a home’s systems and appliances. It’s not homeowners insurance, but acts as a complement to it – protecting things that your insurance doesn’t.
Your home systems and appliances, like your water heater and oven, will break down over time. And sometimes, things just stop working, no matter how old they are. It happens. That’s where a home warranty comes in – offering a budget-friendly solution for covered household breakdowns.
And if it’s peace of mind and convenience you’re looking for, we’ve got you covered. Our service plans remove the guesswork. No time spent asking for repair recommendations or calling contractor after contractor. When things go wrong in your home, you’ll know exactly what to do.
What Does A Home Warranty Cover?
Depending on your service contract, your home warranty can cover repair and replacement bills for:
- Washer and dryer
- Oven and stove
- Water heater
- Plumbing system
- Electrical system
- Heating, ventilation and air conditioning (HVAC) system
Home warranty plans come in all shapes and sizes. Some are narrow in scope, while full-service plans include all appliances and systems as well as things like pools, spas and septic systems. But they usually don’t cover structural items like windows, roofs and fences.
Do I Need A Home Warranty?
Generally, first-time buyers are good candidates for home warranties.
The first year of homeownership tends to come with a lot of unexpected home repairs, so having a service plan in place provides peace of mind and could also save some money.
If you are long settled into your home, getting a home warranty could be a smart move, as well.
During uncertain economic times, a warranty may be helpful in terms of budgeting and hedging your bets against older appliances and systems that will eventually fail.
Home sellers are often advised to include homebuyer warranty coverage to entice buyers.
Not only will this likely get you a maximum selling price, but it will relieve you of any further obligations should repairs or replacements become necessary after the final purchase is completed.
Home Warranty Costs
How Much Does A Home Warranty really Cost? A home warranty plan ranges in cost depending on the level of coverage. Improve.net (as of May 2020) says the average cost of a home warranty plan is between For Landmark Home Warranty, plans range between $350 to $600 a year, or $35-$65 a month. Homeowners can customize their plan and add additional coverage for multiple appliances they may have in a home (for a home with two garage door openers, you can add coverage for the second garage door opener, for example) or for less common items like swimming pools or septic systems. These add-ons range in price as well, but they give homeowners the ability to customize their home warranty coverage for the price that best suits them.
Home Warranty vs. Homeowners Insurance – What is the Difference?
Don’t think of us as insurance. Think of us as a plan to keep your systems and appliances working like they should. Homeowner’s insurance protects against things that might happen — like fires, theft or natural disasters.
Home warranties get used more – in fact, you’re 28 times more likely to use it than insurance. It helps protect your budget from the cost of repairing or replacing things you count on to keep your home running every day.
covers things that might happen.
covers things that will happen.
|Theft||HVAC stops running|
|Fire damage||Water leaks|
|Storm damage||Dishwasher stops running|
Is A Home Warranty Worth It?
To help determine if a home warranty is a good value, it pays to weigh the pros and cons.
“The benefits include coverage on common household appliances and systems, the convenience of sourcing a home warranty vendor for quotes and servicing, and the likelihood of lower or free services compared to what the average handyman will charge.
On the other hand, you may have steep annual premiums, deductibles and service call fees. Your choice of service professionals may be limited, as the service contract may require you to use repair professionals the home warranty provider partners with, and some warranties don’t cover replacements.
As with any kind of insurance, you might end up losing money in the long run. But it’s good knowing you have a plan in place if the furnace conks out in the dead of winter or your central air conditioning stops working on the hottest day of the year.
How To Shop For A Home Warranty
If you decide to purchase a home warranty, it’s important to shop around for home warranty companies and compare service contracts carefully.
Try searching online and compare warranty providers in your state. “There are major differences in costs, coverage and liabilities, depending on where you live. You can also try contacting real estate agents or brokers themselves. Real estate companies and home warranty providers often work together
In addition, check to see if the Better Business Bureau has any complaints associated with a provider before committing to the company.