Importance of Home Warranty

Dhanya Joy Jan 9, 2019
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Home warranty insurance covers costs of replacement or repair of home systems and appliances, which otherwise could prove to be heavy on your pockets.
Home warranty insurance is a policy, that would cover expenses, if a replacement or repair is needed for any home systems, appliances. Maintaining a house can be expensive and if an appliance or a system fails, it could mean more unanticipated expenses. It is a preventive measure taken to cope with such expenses and also known as a service contract.

Why is it necessary?

As a homeowner, getting covered with an insurance is a necessity, if your home is more than ten years old or the appliances are old enough for replacement. Also, if the appliances are not maintained well, it could cost you quite a lot to get them repaired and you might have to get them repaired frequently.
If you do not know a reliable service contractor, finding one could be a task and you surely would not want to try your luck at repairing the appliance or system yourself.
You would definitely require a home warranty insurance, if you know that you would not be able to bear the heavy expenses incurred on repair or replacement. Getting a home insurance warranty is a very good idea for inexperienced homeowners and also for first-time home buyers.

What is covered in it?

It usually covers home systems like heating, ductwork, garbage disposal, cooling, plumbing and the basic home appliances like dishwashers, doorbells, ceiling fans, air conditioners, etc. Depending on the insurance provider, it may also cover some additional components.

How much does it cost?

The cost of an insurance would depend upon the coverage and the protection plan that is being offered by the insurance company. It is inexpensive and usually costs around $250 to $400. It is generally issued for a year, after which it can be renewed.

How does it work?

Once you get yourself covered with it, you can avail the services whenever any of your appliances or systems stop working. You can call the insurance company and report the problem. The company will then get in touch with a service provider, with which it has an arrangement.
The provider will then try to find the problem. If it can be fixed, the provider will do so, else a replacement is advised. Based on your coverage, the company will replace the appliance or system. After replacement, you would have to pay the deductible to the company.


Some advantages are listed here.
  • Having it, is as good as buying peace of mind, as it relieves you of the burden of unanticipated expenses.
  • Homes with an insurance, sell faster than those without one. It can also increase the value of a house.
  • It replaces and repairs not just one but many appliances that malfunction or breakdown during the term of cover.
  • For home buyers, it is a relief from unanticipated expenses during the first year after purchasing the home, as this is the time when most of the non-recurring expenses have to be dealt with.
Get yourself covered with a plan that suits you best and avoid the hassles of expensive repair and replacement.