Your home (and the things in it) are among your most important - and pricey – assets. So, it's only natural to worry about all that could possibly go wrong. When you have a home warranty plan in place, you can have peace of mind against unexpected bills associated with covered repairs and replacements.
If you're still at the beginning stages of your research, check out this overview of home warranty plans. For those who are well acquainted and seriously considering the purchase, here's what you need to know about buying a home warranty plan:
Home warranties can generally cost a few hundred dollars a year, although some plans that just cover appliances may even be less than $100. There are several factors that contribute to the range in prices, such as service fees and add-ons.
Home warranty plans can be purchased to help fill the gaps left by most basic homeowner’s insurance. While the latter typically covers damage caused by accidental or unavoidable occurrences like theft, severe weather or fires, home warranty plans cover appliance and system issues caused by normal wear and tear from constant daily use.
Home warranty coverage varies by the plan and provider. While you can choose from individual or combo plans, the coverage options are generally appliances and home systems, including heating and cooling, electrical and plumbing. For more details, check out this rundown of home warranty coverage.
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The reasons to buy
Most homeowners purchase a home warranty for the peace of mind that comes with knowing they won't have to shovel out tons of money for hefty repair costs on covered items. If you're still on the fence about whether or not a home warranty is worth it, here are a few more reasons to consider.
The typical home warranty owner
Home warranty plans are especially common purchases for those who own older homes, as those residences are more prone to needing repairs and replacements. It's also a smart move to buy a home warranty for resale purchases, as it's sometimes unclear how well the previous owners maintained the home systems.
In some new construction cases, a home warranty plan may not be necessary. For instance, many builders offer their own warranties, which may eliminate the need to buy a separate plan. Consumer Reports also notes that recently purchased appliances may be covered by the manufacturer or even the credit card used for purchase.
If you're ready to make the purchase, here are the questions to ask when comparing different plans and providers.