Should I get a home warranty?

Last Updated: May 20, 2024

Michael Rosenberg

Michael Rosenberg

Specializes in translating complex information into readable, engaging content. Michael@top10us.com

A home warranty is a contract between the homeowner and the warranty company. The home warranty companies provide you specific discounted replacement and repair services on the major equipment or systems of the house, for example, electrical appliances, HVAC, furnaces, and plumbing systems. Warranty does not cover major damages like property crimes, fires, and storms. If you want peace of mind from annually repairing your house’s major appliances, then you should buy the home warranty. 

According to the contract, the home warranty company will repair your damaged home appliances. In case of damage to electrical appliances, the company will repair them or replace them. The best part of having a contract is that you don’t have to spend your money on the same thing every time. Different home warranty companies offer different services. You can choose a home warranty according to your budget. With low contract cost, you can avail of the basic warranty or can go for a premium home warranty for full coverage. Depending on your need, the company can provide you with different coverage plans, such as the plan that only covers the home appliances, or cover all the systems like heating and cooling, or you can choose the plan that covers the appliances and system both. Many companies also offer plans covering your whirlpools, spas, swimming pools, and saunas. 

A home warranty is often confused with home insurance, but both are different things. If you are looking to get a home warranty, you should conduct thorough research before reaching any conclusions. 

Cost of the Home warranties

The cost of the home warranties depends on the coverage plan you’ve chosen. It can start from a few hundred dollars per year but if you want to cover all the systems of your home like plumbing, pools, leakage in the window or roof, and the appliances including the dishwasher, ovens, washers, and dryers; then this coverage might be expensive. The most important thing in this contract is, in case of any damage, you can recover all the money that y]ou paid to the company in an annual premium contract.

The age and the square footage of the home do not increase money in the contract unless it is brand new. The cost coverage for the brand new home will be higher. Other than the annual premium, a service call fee can be $75 to $125 every time you call the service provider to check the problem. If more than one contractor visits your home, you will pay the same service charges to all the contractors. You can pay the premium fee monthly or per year and the fee depends on the coverage you are availing and the location of your home. The average cost of the house warranty can be $300 to $600 a year. If you cancel the contract after the coverage of one month, the company will charge you almost $70 to $75 cancelation fee. 

The company does not always pay for repairing your damages. Sometimes, companies do not consider the claim if you fail to maintain those appliances or violate any terms of the contract. In such cases, you have to pay the repairing fee. If you don’t have any contract with a home warranty company, you could spend more than a thousand dollars in replacing or repairing the appliances, such as HVAC and plumbing systems. A home warranty gives you peace of mind and you don’t have to worry if the major appliances in your home fail. Having a contract with a good home warranty company would save your time searching for a trusted contractor for repairs.

It will be better for you to buy a contract for your home if you:

  • Want to spend less money in replacing and repairing home appliances and systems.  
  • New in the area and have no idea about the repair contractors
  • Thinking to sell your house and want good buyers
  • Buy a new house and want to maintain all its appliances and systems properly.

Before the contract between you and the warranty company is signed, the company will send their inspection team to check whether all the systems are perfectly installed and maintained. They will also check the condition of your appliances and will make a complete report about it. If the report is accepted by the company they will sign the contract with you and afterward they will provide you service when you need it.

Benefits of a Good Home warranty

A home warranty can play the role of a buffer in your life if you have no money to pay for sudden repair bills. You don’t have to track down the repairing contractor in case of any mishap. If you buy a new home and have no money, the home warranty is the best option to avoid any other expenses of replacing or repairing the systems. When you buy a contract, you have the access to the most experienced service providers who will always be ready to help you at any time. You just have to make a call and the service provider will be at your doorstep.

Drawbacks of home warranty

The company will not consider the claim if the contractor makes a report that the system was not maintained properly. The company will always insist on repair instead of replacing the system whether all parts are broken but the technician can still fix it.

Sometimes home warranty companies charge more than the actual repairing expenses. For example, you have to repair your washing machine, the company will charge the contractor visit fee even if the machine is beyond repair. And the contractor tells you that you have to replace it. Every time you call for a technician the company will charge the visiting fee whether the contractor solves the problem or not.

So, have a look at the advantages, disadvantages of home warranty systems and whether they cater to all your needs or not to decide whether you need one. When you buy a home warranty, search for the best companies and read thoroughly about the services they provide. Don’t forget to read their reviews and check the rating. Always choose the one with having a high rating and the best reviews. To make your life easy and comfortable, always choose the best company so you don’t have to worry about repairing problems anymore.

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