The Pros And Cons Of A Home Warranty

The Pros And Cons Of A Home Warranty

When it comes to homeownership, there are a lot of things to think about including whether or not you need a home warranty. There can always be things that happen unexpectedly and more often than not, are completely out of your control. While you do your best to avoid things happening sometimes you can feel that having a policy in place that covers your back for those eventualities is essential. Or is it? 

The Pros And Cons Of A Home Warranty

One important decision is whether or not to purchase a home warranty. Home warranties can provide peace of mind and protection in the event of unexpected repairs that aren’t in the budget, but they also come with some potential drawbacks. Here’s a look at the pros and cons of home warranties to help you make the best decision for your needs.

Home Warranty Pros 

First of all, let’s look at the advantages of home warranties. 

Protection

The biggest benefit of a warranty is the protection it offers. Home warranties can cover unexpected repairs on major systems and appliances, saving you money and hassle.

Convenience

Home warranties can also offer convenience by providing access to pre-screened contractors and 24/7 customer service.

Flexibility

Home warranty plans can be customized to fit your needs, and you can often choose your own deductible.

Saves Money

One of the obvious pros of home warranties is the potential they have to save you money. Of course, initially, you pay for a warranty plan, most likely in monthly installments, but if you ever were to have to make a claim, it could save you hundreds or even thousands of dollars. If you don’t have an emergency fund, this could be a lifesaver. 

Peace of Mind 

The other major benefit to share with you is the fact that the home warranty can give you peace of mind. It helps you to feel at ease that should a situation occur where you need to make a claim that your home warranty will be there to cover you, pay for things, and get you back to the same situation you were in before. 

Get a free quote for a warranty plan from Choice Home Warranty.

Home Warranty Cons 

Like with most things there are disadvantages of home warranties. Here are some of the ones to be mindful of. 

Cost

The monthly or annual premium for home warranties can add up over time.

Exclusions

Home warranties typically have a long list of exclusions, so it’s important to read the fine print before signing up.

You might find that some home warranties will have exclusions. It often means that certain repairs, perhaps parts of the home that are liable for wear and tear, might not be covered. You also need to factor in that the repairs you are wanting might not be covered, especially if they are specialists in the property. 

Limitations

Warranty coverage is often limited to one year, so you may need to purchase multiple plans to get long-term protection.

Coverage

The one thing people don’t realize about home warranties is that you may not be adequately covered for what you want or need for your home. This is especially evident when it comes to repairs and the issues it can cause mean you could be out of pocket when you come to make a claim. 

Ownership 

Another thing to consider is that the warranty policy may not belong to you. This will be worth checking if you rent and pay for a home warranty as the owner of the property will be the one that has the right over making a claim. 

Preferred Repair Companies

Finally, it is worth noting that you may only have a very limited choice of repair companies. Most home warranties will have a preferred list of companies they want to use, and this may not be somebody that you want. 

Click here for a free quote for a home warranty plan.

Home Warranty FAQs

Here are some frequently asked questions about home warranties.

– What is a home warranty?

Home warranties are a service contract that covers the repair or replacement of home systems and appliances.

– How much do home warranties cost?

Home warranty premiums can vary depending on the provider and the coverage you select, but typically range from $250 to $600 per year.

– Who needs a home warranty?

Homeowners who want protection against unexpected repairs may benefit from home warranties.

– What does a home warranty cover?

Coverage varies by plan, but most home warranties cover major systems and appliances such as HVAC, plumbing, electrical, water heaters, and refrigerators.

– Are home warranties worth it?

That depends on your individual needs and preferences. home warranties can provide peace of mind and protection against unexpected repairs, but they also come with some potential drawbacks.

– How do I choose a home warranty?

When choosing a home warranty, it’s important to compare plans and prices from multiple providers. You should also read the fine print carefully to understand what is and is not covered by your plan.

– How long do home warranties last?

Most warranty plans last for one year, although some providers offer longer terms. You may need to renew your plan each year to maintain coverage.

– What is covered by a home warranty?

Warranty plans typically cover repairs or replacements for major systems and appliances, such as air conditioners, water heaters, and ovens. Coverage varies by provider and plan, so be sure to read the fine print before signing up.

– What is not covered by home warranties?

Home warranties typically have a long list of exclusions, including pre-existing conditions, cosmetic damage, and normal wear and tear. Be sure to read the fine print of your home warranty contract before signing up.

– Do home warranties cover appliances?

Some warranty plans cover major appliances such as refrigerators, ovens, and washers/dryers, while others offer more comprehensive coverage that includes small appliances.

– Do home warranties cover air conditioning?

Most warranty plans cover HVAC systems, which includes air conditioning. However, coverage may be limited to certain parts or repairs.

– How do I file a home warranty claim?

If you need to file a warranty claim, contact your provider and follow their claims process. You may be required to pay a service fee or deductible, and repairs may be limited to certain parts or systems.

– How do I cancel my home warranty?

If you need to cancel your home warranty for any reason, contact your provider and follow their cancellation policy. You may be required to pay a fee or submit a written request.

– Can I get a refund on my home warranty?

Refunds are typically not available on warranty plans, but you may be able to cancel your policy and receive a pro-rated refund.

– Do home warranties cover pools?

Warranty coverage for swimming pools is typically limited to the pump and motor. Some plans may also cover the pool heater.

– What is the home warranty deductible?

The warranty deductible is the amount you will pay out of pocket for each service call. Deductibles are typically $50-$100, but can vary depending on the provider and plan.

– How do I compare home warranty companies?

When comparing warranty companies, it’s important to consider the cost of the premium, the coverage offered, and the exclusions listed in the contract. You should also read customer reviews to get an idea of the company’s customer service and claims process.

– How do I know if I have a home warranty?

If you’re not sure whether you have a warranty plan, check your home insurance policy or contact your real estate agent. Home warranties are sometimes included in the sale of a home.

– Who pays for the home warranty?

The warranty plan premium is typically paid by the homeowner, although some sellers may include it in the purchase price of the home.

– Can I buy a home warranty after I close on my house?

Yes, you can purchase a home warranty at any time, even if you’ve already closed on your home. However, coverage may be limited if you have pre-existing conditions.

– How much do home warranties cost?

Warranty plan premiums typically range from $250-$500 per year but can vary depending on the provider and the coverage you choose.

– Are home warranties worth it?

Home warranties can provide peace of mind and protection against unexpected repairs, but they also come with some potential drawbacks. You’ll need to weigh the costs and benefits to decide if a warranty plan is right for you.

– When should I get a home warranty?

You can purchase home warranties at any time, but most people do so when they buy or sell a home. Some home builders also offer home warranties for new construction homes.

Click here for a free quote for a warranty plan from Choice Home Warranty.

Conclusion

Hopefully, going over the pros and cons will help you be more aware of home warranties and whether you want or need one.

Ultimately, whether or not a warranty plan is right for you depends on your individual needs and circumstances. If you’re concerned about unexpected repairs, home warranties can offer peace of mind. But be sure to shop around and compare plans before you buy, to make sure you’re getting the best coverage for your needs.

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