A home warranty is a yearly contract you purchase through a warranty company. A home warranty covers the breakdown and replacement of home appliances and components.
Cost of a Home Warranty
Most home warranties cost around $50 per month, but insurance can cover some based on your needs. There are basic warranties and extended warranties.
What it Covers
- Refrigerator
- Washer
- Dryer
- Dishwasher
- Microwave
- Oven
- Air conditioning system
- Heating system
- Plumbing System
- Garage Doors
- Water Heater
- Sometimes electrical
How does it work?
If you carry a home warranty and something in your home isn’t working, you will call your agent and file a claim. They will schedule a time for a verified repair person to come out and see your issue. If an appliance needs fixing, it will be fixed; if it needs replacing, it is replaced.
Why have a home warranty?
In many cases, when you are buying your home carrying a home warranty, that first year is very beneficial. The monthly cost is minimal if you have to fix or replace an appliance. Typically your first year in a home is when you find out what works and what doesn’t. Having a home warranty protects your home budget as well. For example, you aren’t worried about your very expensive heating system breaking down in the middle of winter and not being able to purchase a new one. You can have a basic home warranty or have an extended warranty for items such as a pool, sump pump, roof, septic system, and more.
When you should have a home warranty
You should have a home warranty in your first year of owning a home. You should also have a home warranty if you are renting a house or you are the owner of the home you are renting to someone else. Having a plan and protecting your appliances is a small fee to pay with a home warranty when something big occurs.
