If you like to play it safe, chances are you have a variety of insurance policies in place to protect yourself from the unexpected. Home warranty coverage isn’t the same as insurance, but it does protect you in case something goes wrong in your home.
The key to understanding whether a home warranty can work for you is to first investigate your expectations. Simply knowing what to expect in advance is a major step in getting the most out of your policy.
Here’s an overview of how home warranty coverage works and why it’s worth it.
What is Home Warranty Coverage?
Home warranty coverage protects homeowners from the high costs of repairing household appliances and systems. When something breaks that covered under your warranty, you call an approved service provider to help you repair what’s broken.
There are dozens of home warranty options on the market. Some tell you which service providers you can use for repairs while others let you choose the person who does the work.
With just about all home warranty contracts, you pay a fee to the person who comes out to do the work. This cost is in addition to the money you pay each month to keep your home warranty coverage in place.
Usually, you can choose to pay a higher monthly fee in exchange for paying lower service fees each time a repairman comes out.
Are Home Warranties Worth It?
Home warranties definitely aren’t for everyone, but if you can’t cover the cost of your air conditioning unit going out in the summer you might be a good candidate for a home warranty.
Home warranties allow you to cover large expenses by paying an affordable monthly fee much like insurance. But home warranty providers are far more involved in the maintenance of your home than an insurance company.
For example, this home warranty company in Texas works with qualified HVAC pros to make sure homeowners aren’t in unsafe conditions during the extreme summer heat. If your A/C unit goes out, you’ll get prompt attention to get your unit back online.
Home warranty companies that go the extra mile to make sure they have good relationships with repair technicians are a major resource for homeowners who might not know who to call when something goes wrong.
When to Skip Home Warranty Coverage
There are a few rare instances when a home warranty coverage doesn’t make sense for homeowners. One example is when it’s redundant because the home you’re buying comes with its own policy.
This is usually only the case with new construction homes. But even with home warranty policies offered by builders, not every system and appliance will be included.
Go through your home warranty coverage in detail to learn what’s included and what’s not. You may not need to worry right away about whether or not the electrical system or hot water heater will go out, but it’s good to have a backup plan for when your units start to age.
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