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Is Buying A Home Warranty Plan A Good Idea? Learn More About It

Monday, April 12, 2021

Just imagine a week after you settle into your home, you find your air conditioner is not working or the dishwasher suddenly breaks down.

These unprecedented things can be stressful, inconvenient and expensive affairs for you. You don’t want to face such situations, especially right after investing your money into buying a home.

Purchasing a home warranty plan is the best way to avoid the financial burden associated with repairing or replacing the home appliances or systems that break down due to regular wear and tear.

You need to pay a warranty amount upfront but the savings could be worth the amount that you pay. Now, this article is going to tell you the basics of a home warranty plan:

What is a home warranty plan?

Unlike home insurance, a home warranty is a service contract that pays the repairing or replacement costs of the covered home appliances and systems like major kitchen appliances, electrical and plumbing systems, heating and air conditioning systems, etc. it doesn’t cover the structural features like windows, doors of a home. On the other hand, home insurance protects a homeowner financially when the property is damaged due to fire, storm, theft, or any other perils.

A home warranty plan could be an excellent resource for a seller to attract potential buyers. New-aged home sellers always prefer to buy a home with a legitimate warranty plan for the major home appliances and systems.

Are home protection or warranty plans worth the money?

Typical home appliances and systems protection plans range between $350 to $650 but if it can cost more if you want to have enhanced coverage for a washer, dryer, swimming pool or garage door.

In addition to the annual premium amount, you have to pay a fee for a service call. The service fee or deductible can range anywhere between $25 to $125, depending on the warranty plan you purchase.

Without a home warranty plan, you could end up paying several hundred or thousands of dollars for repairing or replacing your major home appliances or systems. This is exactly where a home warranty plan can help you save a great deal of money and that’s why it’s worth the yearly annual charge that you pay.

Who should buy a home protection plan?

If you are purchasing an old home, you might consider investing in a home warranty plan, especially, if your home inspection finds out several of your home’s appliances and systems are aged and near to their lifespan. Before you purchase a home warranty plan, you should check a few things- the terms and conditions, how long it will cover your items and what items your plan will cover or not cover.

How to find a legitimate home warranty-providing company?

This is specifically where you should do the brainstorming and research. When you have already shortlisted some companies providing services in your area, you should check all the reviews given by their customers online. You should not select a company that has more negative customer reviews than positive ones. If possible, talk to their present customers personally to know how satisfied they are with the service provided by the company.