There is a lot of work, effort, and even luck and hope that goes into buying a home – and then once you finally have it, you need to keep it strong, safe and secure. You want to take preventative action in keeping everything working smoothly and make sure that if and when something does go wrong, you’re in good hands. A home warranty can go a long way into taking care of important items within a home, while giving you piece of mind throughout the year when managing budges and expenses. Here’s how they work.
Home Warranty is Not Home Insurance
This is a common misunderstanding, but it’s vital to understand the differences. The warranty covers appliances and mechanical systems within the home that may deteriorate or break down over time. While insurance covers the home itself, including structural damage that may happen during storms and other disasters, the warranty deals with appliances and systems. While insurance is mandatory when buying a home, a warranty is optional. It’s easy to think of it as extended insurance, in which you’re covering things that can break down within a home. Of course, not every home warranty group is created equally. It’s important to shop around for the right home warranty for you; Liberty Home Guard, for example, offers free home consultations and quotes as one of America’s best home warranty companies.
Appliances and home systems cover a wide range, but every warranty is different and priced appropriately. Ovens, ranges, and dishwashers are among the most popular items, but warranties may also include doorbells, ceiling fans, telephone wires, and duct work. In general, those items that work within and throughout the home are covered. However, as you’ll see, that’s not always the case.
What’s Not Covered?
Usually items that don’t really rely on the home itself aren’t covered – things that don’t necessarily connect via internal wiring, pipes, or ducts. Washer, dryers, and refrigerators, while essential home appliances, may not be covered. This also goes for outdoor items too, such as hot tubs, pools, or sprinkler systems. As always, be sure to go over potential warranties to see what’s included, what’s not, and what’s negotiable.
There’s Probably a Plan for That
While we’ve gone over generally what’s covered and what’s not, it’s wise to shop around and find out what’s possible. There is no set single plan. In fact, there are any number of plans and options available, and the things we mentioned that usually aren’t covered may be covered by singular companies. It’s about finding a company to trust, assessing your needs, and determining what’s an appropriate amount of money to spend on it.
How Much Does a Home Warranty Cost?
This shouldn’t come as a big surprise, but prices fluctuate greatly depending on what you have covered. Typically warranties are annual plans, covering 12-month periods. They can be as low as around $1 a day, or roughly $350 a year, or as much as $1,000 in a year depending on what you’re covering.
Warranties May Come with a New Home Purchase
When shopping around for a new home, check to see if a warranty is included in the sale. Some sellers will have a home warranty as part of the deal – it certainly makes the home more attractive as now the appliances and systems within are protected for the year. Occasionally, real estate agents may gift new homeowners a warranty when the sale is closed. And if you’re the one selling a home, a warranty will help set you apart.