Your home is undoubtedly one of your most precious possessions. It is the only place in the world where you feel the safest and the most comfortable. That’s why it is your main responsibility as a homeowner to protect it the best way you can from various unexpected events.

While for many securing a home primarily means installing a good security system and upgrading the door locks, it also means acquiring home insurance to protect it from major disasters such as hurricanes, vandalism and theft. There is also another effective way to protect your home and that is by obtaining a home warranty.

Unlike home insurance, a home warranty cover is designed to care for your home and the systems within it in case they break down. In this article, we give you an overview of what a home warranty is, how much it costs and the benefits it provides.

How does a home warranty work?

In general, a home warranty works similarly to any other insurance policy. Every year homeowners make a contract with a reputable home warranty company which provides discounted repairs and replacement services on a home’s major components and appliances due to normal wear and tear.

These companies have agreements with approved service providers who come into the home to repair or replace whatever is necessary for a small service fee which residents pay after the work is completed. Such trusted quality care will certainly simplify your life by helping you save money and time while also maintaining your home’s health.

What does a home warranty cover?

Depending on your needs and budget, there are three types of home warranty plans available. These are systems plans, appliance plans and combination plans.

For example, the system plans cover whole-home systems such as your air conditioning, heating, electrical, plumbing, water heater, smoke detectors, ceiling fans and doorbells.

The appliance plans cover major appliances like your refrigerator, dishwasher, oven, stove, clothes washer and dryer, built-in microwave and garage door opener.

The combination plan is often the most preferred choice by homeowners as it covers both whole-home systems and appliances. Depending on the home warranty company’s policy, you may be able to customize your plan and choose the items you want covered.

How much does it cost?

In general, a home warranty costs several hundred dollars a year which you pay up-front, or in installments if your home warranty company offers such a payment plan. The overall cost may vary depending on the type of property you own, the type of plan you purchase and whether your home is brand new, in which case the cost of coverage may increase.

Your property’s square footage can also increase your annual premium if it is more than 5,000 square feet. If you have any separate structures, such as a guest house, they won’t be covered by the basic policy but can be covered for an additional fee.

There may also be a service call fee which refers to the amount you owe to the service technician when you request a service.

Benefits of home warranty

There are several benefits you get from obtaining a home warranty. The biggest one is that it offers peace of mind and financial protection against expensive and unexpected repair bills. This comes especially in handy for those homeowners who don’t have an emergency fund or want to reserve it for other things, so they can rely on their home warranty to act as a buffer.

Other benefits that come with having a home warranty include providing access to experienced local contractors when you don’t have the skills or tools to do the repairs yourself. It can also benefit you if you are a new homeowner who may not be as familiar with how your new home’s systems work.

Final thoughts

One of the main responsibilities you have as a homeowner is to protect your home. Besides obtaining home insurance to protect your property from various damages, you should also consider acquiring a home warranty to provide financial protection to your home’s major components and appliances from normal wear and tear.

With the right home warranty plan, you will be able to receive top-quality care and service from professionals while preventing yourself from paying expensive costs for repairs and replacements.

For more information, refer to our post and learn everything you need to know about home warranties.

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