A home warranty is similar to home insurance in that it provides financial protection for the homeowner. However, unlike insurance, it’s not mandatory by law to have a home warranty.
When you buy a brand-new or pre-owned property, it will automatically come with home insurance. You will be offered the option to add a home warranty to the plan. There are several different home warranty plans that you can choose from, all with varying levels of coverage.
It’s important to weigh up the pros and cons of getting a home warranty before you buy a new property so you can determine whether it’s the right decision for you. To make your choice easier, we’re going to cover everything that you need to know about home warranties, including what they cover and how much they cost.
A home warranty is a type of insurance that protects the belongings inside your property in the event of water damage, fire damage, and theft. Some warranty plans may also cover the cost of repairs for faulty electrics or plumbing, or for appliance repairs in your home.
Depending on the level of coverage that you want, the cost of a home warranty can vary. Different providers offer a range of unique plans for you to choose from and it’s worth spending some time researching before you make a final decision.
Most home warranty providers will offer two payment options – monthly or annual payments. Be sure to get accurate quotes from each provider so that you can compare prices side-by-side when you’re searching for the perfect plan for your needs.
The amount that you pay for your home warranty depends on the level of coverage that you need. If you go for a plan that covers most of your home appliances and repairs, it’s going to cost a highly monthly or yearly premium.
For brand-new homes, warranties can often be more expensive than older properties of the same size. This is something to keep in mind when you’re collecting quotes from different providers.
The question of whether or not a home warranty is worth it for you depends on your personal circumstances and preferences. Since they’re not mandatory by law, the choice really is in your hands!
Home warranties protect you financially from the cost of expensive repairs and you will be able to get your appliances fixed quickly and easily by a qualified technician. However, you may never need to make a claim on your home warranty but you will still be tied into contractual monthly or annual payments.
Even if you do make a claim, the cost of the repairs might equate to less than your home warranty payments. Plus, some repairs may not be covered by your plan, meaning you would need to pay for these repairs out of your own pocket.
Spend some time weighing up the benefits and drawbacks of getting a home warranty so you can decide if it’s the best choice for you or not.