Purchasing a home is likely one of the biggest investments you’ll ever make. While homeownership comes with many perks, it also carries unpredictable costs when appliances and systems eventually break down. A home warranty can provide invaluable budget protection against expensive home repairs and replacements.
If you’re considering a home warranty plan, here’s an overview of how coverage works and key benefits you’ll enjoy:
What is a Home Warranty?
A home warranty is a one-year service contract that covers repairs and replacements for home systems and appliances that break down due to normal wear and tear. When something stops working, you pay a low service fee (typically $60-100) and the warranty company takes care of the rest of the cost of the approved repair or replacement. This protects you from huge unexpected repair bills.
What Does a Warranty Cover?
Quality warranties cover items such as your major home systems (HVAC, plumbing, electrical, etc.), kitchen appliances, laundry appliances, and some additional components. Higher-tier plans expand coverage to further items like pools, spas, wells, roof leaks, and more. Review the coverage inclusions when choosing a plan.
Benefits of Home Warranty Coverage
Protection from surprise bills – With a home warranty, you know the maximum you’ll pay is your low service fee per incident. This avoids budget-busting repair and replacement costs. For example, without warranty protection, you could easily face $3,000 bills for furnace replacements, $1,500 for AC repairs, $2,000 for electrical rewiring, and more. Most homeowners simply don’t have thousands readily available to cover major breakdowns like these. A home warranty ensures you only pay a small service fee, while the warranty company foots the remainder of even exorbitant repair or replacement costs. This protection is invaluable for homeowners wanting to avoid financially devastating surprise bills.
Peace of mind – You can rest assured knowing you have protection from some of the costly breakdowns that come with home-ownership. This peace of mind is invaluable. Home repairs and replacements can be enormously expensive, often costing thousands of dollars out of pocket if you don’t have warranty coverage. Knowing you have a safety net in place and won’t be hit with the full brunt of these unpredictable costs allows homeowners to sleep better at night. The comfort of having home warranty protection provides confidence in your budget and savings.
Affordable coverage – Home warranties provide comprehensive protection for just pennies a day. It’s a budget-friendly safeguard compared to potentially thousands on repairs.
Streamlined service – Quality home warranty providers have networks of qualified local technicians to ensure prompt, reliable service. This saves you time and hassle.
Increased home value – Warranty coverage is an attractive perk that can increase buyer interest and home sale prices down the road. According to National Association of Realtors data, 60% of home buyers said they would be more inclined to purchase a home offering a home warranty. Additionally, homes with warranties sell faster and for around 9% more money according to respected trade publication Warranty Week. With statistics showing home warranties notably boost resale value, having coverage can be a wise investment for the future. Providing warranty coverage shows buyers you’ve cared for the home and systems well, making it even more appealing.
As you consider purchasing a home, look into adding on a home warranty as well. While not mandatory, coverage from a leading warranty company offers savings, convenience, and peace of mind every homeowner can appreciate. Give yourself budget protection by investing in this valuable service when buying your home.