Protecting Your Pocketbook With Home Warranties—Are They Really Worth It?

Protecting Your Pocketbook With Home Warranties—Are They Really Worth It?

Home Warranties

Plan to be protected. You’ve thought about blinds versus drapes; you’ve planned where the sofa will go, but have you thought about your appliances and systems failing? Have you thought about the cost of needing to repair a broken refrigerator, washer/dryer, or A/C unit? As a homeowner, the thought of anything breaking can be a bit nerve-wracking and expensive. Having a Home Warranty in place can put you at ease. Responsible homeowners often choose to have a home warranty because homeowners’ insurance does not cover failures of appliances and systems.

A Home Warranty provides repair or replacement coverage for mechanical failures of major systems and appliances. Whether the dishwasher suddenly stops washing or the A/C stops cooling, you’ll appreciate the savings, convenience, and peace of mind that come with home warranty protection.

As a homeowner, you never know when an problem will occur. Maybe you will have mechanical issues with an appliance or A/C about once a year or every few years. You just never really know. That is why having the protection of a home warranty is a smart thing to do for both buyers and sellers. Here are a few benefits of having a home warranty for both buyer and seller:

How Home Warranties Help Sellers:

  • Offers additional value to prospective buyers while your property is on the market.
  • Reduces problems after closing should anything arise after transferring title, the buyer will contact the home warranty company instead of you.
  • Protects your budget from unexpected repairs or replacement expenses while your home is on the market.
  • Can avoid closing delays due to a system or appliance failure.


How Home Warranties Help Buyers:

  • It is customary that the seller provides the buyer with a 1-year home warranty.
  • When covered by a home warranty, you will have access to qualified contractors by merely calling an 800 number.
  • Peace of mind. You are covered should any issues arise after closing.


The Difference Between a Home Warranty and Homeowner’s Insurance

Just a reminder, having a home warranty plan in place does not replace your homeowner insurance. These are two completely different coverages. Having a homeowner’s insurance policy in place protects your home from loss caused by fire, theft, storms/natural disasters, vandalism, and other items per your policy. It also protects your personal property.

Having a home warranty policy pretty much works like having a service contract that covers your systems and appliances as mentioned above. Your home warranty policy provides repair or replacement if your plumbing, electrical, heating and cooling system, refrigerator, stove dishwasher stops working.

Conclusion—Home Warranties Are Worth the Money. But, Make Sure to Do Your Research

When it comes to choosing a home warranty provider, be sure to do your research. Every company offers a little something different than the next. You can reach out to your Real Estate Agent for recommendations or search companies and reviews online.

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