A home warranty costs several hundred dollars a year and is paid in advance (or in installments, if the warranty company offers a payment plan). The cost of the plan varies depending on the type of detached single-family property, condominium, townhome or duplex and whether the owner purchases a basic or extended plan. A home warranty can be a great option to protect your home investment. When combined with a good homeowners insurance policy, you can have most of your bases covered.
However, if you bought a new home, many home systems are covered by manufacturer's warranties. Home guarantees aren't just for new homes. In fact, since older homes tend to have a lot more unknowns, warranty plans can help you save a lot on maintenance costs and protect you against unexpected expenses. Are home guarantees worth it? Yes, depending on a variety of factors, from the age of your home to the amount of money you have in reserve for unexpected repairs.
The best home guarantees are especially useful when buying older homes (or as a separate purchase if you already live in an aging home), since many systems may be aging simultaneously and, while in good condition at the time of purchase, threaten to fail at the same time. Instead of exhausting their savings for these repairs, some people purchase home warranties to lower the cost of common home repairs. The most common items covered by home warranties include electrical, HVAC and plumbing systems, and defects in large appliances, such as washers, dryers and refrigerators. Home warranties are renewable home service plans that offer discounted repair and replacement services for covered appliances and home systems.
Like all warranties, a home warranty is supposed to protect against costly and unforeseen repair bills and provide peace of mind. We're sure you've wondered what the basics of what a home guarantee is and, at the same time, you've considered which company you should take yours from once you determine that a home warranty is worth it for your particular situation. It doesn't offer the same coverage as home insurance, so it's important to know the difference between home guarantees and home insurance. But are home guarantees worth it for both landlords and tenants? Learn more about what a home warranty is, when someone should buy it, and if a home warranty is right for you (in addition to what the best home warranty companies offer).