What To Consider When Buying a Home Warranty

Home Insurance and Real estate investment concept

There are a lot of things to think about when you’re purchasing a home. Even with due diligence and thorough inspections and research, it’s hard to be 100 percent sure of what you are buying. This is why many homeowners consider buying a home warranty. A quality home warranty will help cover the costs if something goes wrong with the mechanical equipment in your home.

Before you purchase a warranty, however, you want to make sure you’re getting the best coverage for your needs. Additionally, you also want to be sure you’re not overpaying. It’s important that you find the best home warranty company with the right protection for your home. Keep reading to learn what to consider when buying a home warranty.

What is a home warranty?


A home warranty is a service contract that covers the repair or replacement of many of the major systems and appliances in your home. It can be a great way to get peace of mind, especially if you’re buying an older home. However, not all home warranties are created equal and different plans vary in what they cover. In general, it is important to be aware of various limitations when choosing a warranty plan. You also need to understand that a warranty is not a substitution for a home insurance policy. A home warranty doesn’t cover damage to your home or any structural issues. You should purchase a home warranty as an additional layer of protection.

What are the costs of a warranty?


When considering whether or not to buy a home warranty, it is important to consider the cost of the warranty in relation to the potential costs of repairing or replacing major appliances and systems in your home. Home warranties typically cost between $300 and $500 per year and may cover items such as the furnace, air conditioner, water heater, refrigerator, dishwasher, washer and dryer, stove, oven, and microwave.

However, home warranties do not typically cover all possible repairs or replacement costs. For example, if your roof leaks and damages your ceiling insulation, the home warranty would likely not cover that repair. Additionally, many home warranties have deductibles that must be paid by the homeowner before the warranty will cover any costs. So before purchasing a home warranty, be sure to read the terms and conditions carefully to understand what the costs are.

What does a warranty cover?


When purchasing a home warranty, it is important to understand the coverage that is being purchased. Home warranties can vary significantly in what they cover. Many home warranties do not cover preexisting conditions, so it is important to read the fine print before purchasing a policy. Additionally, many home warranties only cover systems and appliances. This means that you are buying protection for the major appliances in your home as well as other mechanical equipment such as your HVAC. Some warranties may offer limited coverage for some minor roof issues.

Unfortunately, the majority of home warranties do not cover swimming pools, spas, or septic tanks. However, you can find add-on plans that will incorporate these items depending on the warranty company. In general, it’s important to read the fine print and understand exactly what you are buying and what protections you get.

What should you look for in a warranty?

A warranty can provide protections for the appliances and major systems in your home, but only if you buy a quality plan. As discussed, it is important to look over the fine print carefully when considering a warranty plan to ensure that you are getting the coverage and service that fits your needs. You can look around at several plans and compare prices and coverage to determine the best product for your situation.

Another thing to consider when purchasing a home warranty is the company itself. It is important to research companies thoroughly before selecting one. Read reviews online and ask friends for recommendations. It is also important to make sure that the company has a good reputation for customer service. If something goes wrong with a covered system or appliance, it is important to be able to get in touch with the company easily and receive help quickly.

When considering purchasing a home warranty, it is important to weigh the pros and cons of the policy and to decide if the coverage is right for you. Overall, a home warranty can be important for protecting your home investment and for peace of mind.