Home Improvement

Is the cost of a home warranty plan worth it?

When you own a home, repairs of appliances and home systems are inevitable. The furnace suddenly stops working, or the HVAC unit has a sudden breakdown, as well as leaky plumbing pipes or a sudden kitchen appliance breakdown, can put a strain on your budget, if they are not covered by manufacturer’s warranty. When breakdowns occur due to normal wear and tear and the age of a unit or system, it will not be covered by a home insurance policy.  Rather than taking a financial risk, many homeowners are choosing to buy a home warranty as a complement to their home insurance to avoid taking a hit to their savings for repairs and replacement, But, are home warranties worth it? 

What Is a Home Warranty?

Home warranties are home service agreements that provide repair and replacement services for covered household appliances and systems listed in a policy. Terms and conditions vary depending on the type of home warranty purchased. Various types of home warranties offered can include: home system and appliance bundle plans, extended home warranties, warranty for a single item, electronics coverage, and more.  

What Is Covered in a Home Warranty Policy?

Depending on the amount of coverage that you purchase, quality plans will typically cover most major components of home systems, such as your plumbing system, furnace, HVAC, electrical, water heaters, etc. Appliances that can be covered include, dishwasher, washers, dryers, stoves,  refrigerators, etc.  You can also purchase optional add-on coverage for plumbing, interior electrical, water/sewer lines, central heating/cooling, well pumps, as well as electronics protection plans, and more.

How Does a Home Warranty Work?

Home warranties are offered via contract for a monthly or annual fee. You will benefit from service calls for repair or replacement of covered items. Service fees and coverage limits vary depending on the company. If a home system or appliance breaks down, you can contact your warranty’s customer service representative. They connect you with an approved repair service provider to assess the breakdown and perform the repair or replacement. A home warranty does not cover appliances, systems, and devices damaged by natural or man-made disasters. These events,  such as, but not limited to: tornadoes, hurricanes, fires, floods, or theft, would be covered under a homeowner’s insurance policy.

Home Warranty Pros

When considering home warranty cost versus the out-of-pocket expenses for a repair or replacement, the home warranty is much cheaper. Plans can be customized to fit your budget and they are relatively inexpensive to purchase. There is no need to look for a qualified  service technician since the home warranty company has a network of trusted professionals. As well, you get peace of mind for your used appliances and older systems. 

Along with knowing what items you want covered in a plan, home warranty cost comparison is essential to finding the right home warranty that meets your needs. With a wide variety of the best home warranty plans and additional options for customized coverage available, ARW Home has a plan that’s perfect for your specific needs and budget.