There are two schools of thought on home warranties. One says, save the money you would put towards the premium each year and self-insure your repairs. They other side says invest in a home warranty to cover unexpected appliance repairs.
If you are a homeowner, a home warranty could be a complement to your traditional homeowner’s insurance policy. With added protection for repairs and replacements of any appliances and systems that break, a home warranty may help you save money. Understanding the coverage offered by your home warranty is also important in deciding which warranty works for you. A home warranty can offer minimal, moderate, or complete coverage. Some warranty providers will let you customize your plan.
A home warranty is not the same as homeowner’s insurance. Your homeowner’s insurance covers financial loss in the event of unforeseen damage such as a fire or storm. A home warranty, on the other hand, protects your major appliances such as the air conditioner or water heater. Typically, a home warranty will cover specific appliances and systems.
According to Home Stuff Works, the top-rated home warranty companies include:
There are drawbacks to a home warranty. Not everything will be covered. You should read the specific terms of your warranty. A home warranty can be the solution to some of a homeowner’s maintenance concerns, but it is far from the perfect safety net. Ultimately, it is up to you to decide whether investing in a home warranty is the right choice for you and your family.
Be sure to do your research before you take the leap. Read over and compare any warranties that you are seriously considering purchasing to get a sense of what repairs will and will not be covered under your contract. Then, weigh the benefits and risks.
References:
How Stuff Woks. (September 9, 2019). What Every Home Owner Needs to Know About Buying a Home Warranty. Retrieved from: https://reviews.howstuffworks.com/home-warranty/articles/what_every_homeowner_needs_to_know_about_buying_a_home_warranty?adposition=&asid=79159738442&campaign_id=6467671660&device=c&gclid=Cj0KCQjwuJz3BRDTARIsAMg-HxVOc5Ewbo5PAnV1vCmcLUriDQvasYVR7D1ZmWNZpZHSm5_e6Y41r4kaApsSEALw_wcB&kwmt=e&network=g&placement=kwd-44251032&utm_content=418084640140&utm_medium=paid&utm_source=google_search_network&utm_term=home+warranty&cc=OKwlkQBlqVdx52EhzwWgLdOUUe01qrWOMxF-j3-xHb_Jwxu4xsXHVUzUhMqdUyQl17e1sfYHS8WUa1WtncgYAtkdIjmsKxFaHAqcvelO3SAkbKbLgxP-AhYJQGe45y_Cov0Jq2fh-4kEcCsnLK9Bol5itmag_NtkqIxX60yVU0E6ovwNyL0TvjMFlx2iONY3t09JuY-JAXjdSpEi-sB1T2gHQ4cCA7OuqLlbPUbVu5gZ_JQXgBLFQ7m6K7A0ll9bxcU3kbzGmd2DUXfslqw2j3iM4dw4PhA41sNAzaIcz8lJwZL0_D2lG3nq5y5oR-_PA93KdJlw9IRkXhqkC3F8pvcsTlhOqlsEBCJjASVkhJaDB9OosmpwvjtPIXDY8TD8J60zE-sUaeh-bAIt21U7zP0S7Kp4x2F1b9oY1HW1Tqa35-UNn4ODnD4f8-FBd5ofMnYyuVSS92yUcptXoQo19gTObuwksX3RQje64c-Ee37H-fBHFTZL
Mastroeni, T. (September 27, 2018). Do You Need a Home Warranty? Weighting the Pros and Cons. Forbes. Retrieved from: https://www.forbes.com/sites/taramastroeni/2018/09/27/do-you-need-a-home-warranty-weighing-the-pros-and-cons/#709945b062a6