Home warranties can provide peace of mind, as they can help protect homeowners against costly repairs, and they can even make it easier to sell a home. Understanding how home warranties work, what they cover, and whether they’re worth the cost can help homeowners decide whether to purchase one.
In general, home warranties help protect homeowners from unexpected repair or replacement costs associated with covered appliances and systems. Most home warranty plans cover major home systems such as plumbing, heating, and electrical, as well as specific appliances like refrigerators, water heaters, dishwashers, ovens, washers, and dryers. Depending on the plan, additional coverage may also be available for garage door openers, pools, spas, central air conditioning systems, and more. Homeowners can choose from either basic plans that cover the most common items, or more comprehensive plans that offer additional coverage.
When purchasing a home warranty, homeowners should consider what the plan covers and whether it is worth the cost. Generally, home warranty plans range in price from $300 to $600 per year. Depending on the plan, the home warranty company will set limits for how much they will pay out in a given year for repairs and replacements. While some plans may have no cap on how much money can be spent annually, other plans may have limits of up to $1,500. Homeowners must also compare the deductibles and fees that the home warranty company charges for repairs and replacements.
Home warranties can be especially beneficial for older homes, as older homes are more likely to require repairs and replacements due to the age and wear of the appliances and systems. Furthermore, home warranties can help make a home more attractive to potential buyers, as it provides them with the assurance that they won’t be responsible for making costly repairs if something breaks down after they move in.
In summary, home warranties provide coverage for major home systems and appliances when they breakdown due to normal wear and tear, offering protection and peace of mind for homeowners. Home warranties can range in price from $300 to $600 dollars per year depending on the level of coverage, and may have varying deductibles and fees associated with repairs and replacements. Older homes are often the best candidates for a home warranty, and they can even make a home more appealing to potential buyers. Ultimately, homeowners must determine whether the cost of purchasing a home warranty outweighs the risk of costly repairs and replacements.
This article was contributed on Oct 17, 2023