How Do Home Warranties Work and What Do They Cover

Life can throw unpredictable challenges at you. Especially when you move to a new home, and you have made a high investment by paying the upfront costs, you will get an unpleasant surprise. That is when your home items will need repair and maintenance.

Normally, your annual homeowner budget is 2% to 4% of the total home value. And guess what? A large part of that homeowner’s budget goes toward dealing with home maintenance.

Here, you have two options on how you want to proceed with the situation.

1. Keep repairs and maintenance as flexible costs and bear all the costs that come along the way.
2. Opt for coverage to have maintenance paid by a third-party company.

If you want to go for option 2, you might want to consider going for home warranties.

We are about to discuss what home warranties are and what coverages you can expect to make your day-to-day tasks easier.

Key Takeaways

Home Warranties

If you are looking to reduce your home repairs and maintenance cost, you can do that by opting for a reliable home warranty.

Home warranties are contracts that cover repairs and fixes of specific home components when they are needed. Usually, home warranties are purchased for a period of one year and renewed annually. Some home warranty providers also offer monthly plans.

Going for home warranties can help you avoid much of a hassle, as well as save you a lot of money. When there is a need for repairs and maintenance, you don’t have to go out and find skilled professionals to do the job. You can just inform the home warranty providers, and they will do the rest.

Similarly, you don’t have to negotiate about the cost of repairs. Since you already have a home warranty plan, the providers will have to deal with all the financial negotiations as well. All you need to do throughout the repair process is wait while the skilled professionals and home warranty providers do their thing.

If you have home warranty coverage, you can protect your property from suffering wear and tear. This can bring multiple benefits that you can leverage.

1. The home value will likely be appreciated. This allows you to sell your property for a profit.
2. Enjoy the preferred lifestyle without worrying about making home repairs.

What Does a Home Warranty Cover?

As you now know about home warranties, you might be excited to pick up your phone and get home coverage, right? Well, before you do that, do you know what exactly will my home warranty cover? That is something you might be might want to know.

To help you choose the right home warranty plan, here are some of the common home items and systems that a home warranty covers.

Plumbing

Making sure your plumbing systems are operating properly can avoid water leaks. You don’t want to have water on the floors and slip, right? Home warranties cover the plumbing pipes, faucets, toilets, drain lines, and more.

You can claim a home warranty for repair or replacement when the pipelines clog, leak, or malfunction. No more waiting for the plumbing problem to get more serious.

HVAC

You would want your heater to work properly in the cold winters and the air condition to keep you cold during summers. That is where you need your HVAC to function properly, which you can ensure with a home warranty.

Instead of freezing or feeling the heat, home warranty providers will be just a call away to fix your HVAC. Usually, the home warranty covers furnaces, air conditioners, thermostats, and ductwork.

Electrical

Trying a DIY approach to fix things like wiring, switches, and circuits can be dangerous. You need professionals for this job, and that is what home warranties ensure.

Your home warranty provider helps find electricians to keep you safe and fix the electricity complications you are facing.

Kitchen Appliances

Imagine wanting to cook your favorite meal, but your stove is not working. Or keeping something cold and fresh, only to realize your refrigerator has malfunctioned. Having a home warranty covers all such problems to carry out your processes in the kitchen.

Laundry Appliances

Whether you have a top-loading washer, front-loading washer, or electric dryer, having a home warranty ensures your equipment functions properly. Whenever there is a malfunction or a breakdown, the warranty providers will have professionals at your doorstep to fix it.

Swimming Pools

Having a dip in the cold can be a refreshing experience. But you can be deprived of this feeling, even if you have a swimming pool at your home and it is not working properly.

Generally, the swimming pool home warranties cover pool equipment like pumps, filters, and heaters.

Pest Controls

Seeing those crawling with pesky pests is not something you would want. That is what you can cover with a home warranty. The pest control coverage usually includes services to exterminate ants, roaches, and rodents.

Note
Swimming pools and pest control might not be included in the general home warranties. You may require additional coverage for these.

What Doesn’t a Home Warranty Cover?

Now let’s talk about some limitations of home warranties. Here are some of the damages that your home warranties do not cover.

• The flaws of the items are cosmetic and do not impact the functionalities. If there are dents, scratches, or smudges, the product is working fine.
• Damage to the products is caused by item misuse or mishandling.
• Appliances and home items are not installed or maintained properly.

When you are planning to opt for a home warranty, make sure you know about these factors which you cannot cover.

The Bottom Line

Having the right home warranty can help reduce your home maintenance cost and save a lot of your efforts. When you go for home warranty coverage, make sure carefully read the terms and conditions before signing the dotted line.

But here is the thing. Going for a home warranty is the second step. First, you need to search for real estate. You can start your home search at HAR. You will find a large number of properties listed on our platform.