Benefits of a Home Warranty

When buying or building a new home, most things remain under warranty for a long time. So, if something breaks or malfunctions, the manufacturer is responsible for taking care of repairs or replacing the item in question. However, if you’re looking to purchase an existing house, especially one that’s more than 30 years old, you’ll never go wrong with a home warranty. For about $500 a year, this can save you a lot of money.

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Considering this is such a competitive market, numerous home warranty companies exist. But not all of them are of the same caliber. Although relatively new, one company has already received significant exposure. The Home Service Club is not only affordable, but it also offers excellent protection.

What Is a Home Warranty?

A home warranty is a program, plan, or policy that covers the cost of replacing or repairing designated items within a home. Keep in mind that not all home warranties are the same. So, it’s essential to review several to ensure you purchase the right one.

What’s Covered?

Most home warranties cover the same things. This includes an air-conditioning unit, furnace, water heater, garage door opening, electrical system, garbage disposal, dishwasher, plumbing, and often more.

How Does a Home Warranty Work?

Companies that offer home warranties charge an annual fee. On top of that, there’s a deductible you would pay for each item repaired or replaced, which is usually around $100. Here are two examples. You have an air conditioner, but it finally died, meaning you need a new one, or you have a dishwasher that won’t drain.

In both instances, you could rely on your home warranty. So, instead of spending a minimum of $3,600 for a new air-conditioning system or $250 to have your dishwasher fixed, you would file a claim with the company that holds your home warranty, pay the deductible, and have the replacement or repair completed.

When you contact the home warranty company, they have a long list of certified and licensed professionals who work in your area. Typically, you get to choose which one you want, whereas, in some instances, the company would automatically select the expert. Either way, an individual comes to your home and takes care of the problem. As you can see, that saves you significant money. Often, people who have a home warranty recoup the annual fee with just one claim.

Are Add-Ons Allowed?

Yes, in some cases. Depending on which home warranty company you go with, they might offer additional coverage. That could include a freezer, swimming pool, hot tub, or even a well pump. As you look at reviews, it’s important to find one that covers the specific things you’re most concerned about.

Check for Caps

When reviewing different home warranty companies, determine if they have a cap on certain repairs or replacements. Some have a maximum amount they’ll pay while others don’t. At the same time, try to avoid a company that charges for a trade call. Overall, you shouldn’t pay anything other than the annual fee and the deductible.

Tremendous Benefits

Often, a home warranty is a lifesaver. For instance, let’s say you have a furnace, but just two days after the manufacturer’s warranty expires, the thing quits working. And unfortunately, it’s in the dead of winter. For just $100 or whatever the deductible is, a licensed professional would see if it’s fixable. If not, the home warranty company would pay to have a new furnace installed. It’s that easy.

The types of things a home warranty covers are generally big-ticket items. So, having this type of protection gives you needed peace of mind.