Simpson
This is a brief and succinct look into what a home warranty is, how it differs from home insurance, why it is advisable to have one on top of a manufacturer’s warranty, and the cost-saving benefits of home warranties.
Different From Home Insurance
A home warranty is a renewable home service plan. It provides discounts on repair and replacement services for broken-down household appliances or systems covered by the warranty. A home warranty is different from home insurance, but they complement one another.
Home insurance covers policyholders for damages done to their personal property or home structure due to events like a fire or theft. A home warranty protects you from paying massive service or replacement fees for broken-down household appliances or systems.
Home warranties are well worth the investment, as it is practically guaranteed that at some stage one of your home appliances or systems, no matter how well-maintained, will experience wear and tear and need to be repaired or replaced.
Home Warranty or Manufacturers’ Warranty?
When you buy a major home appliance, such as a fridge or washing machine, it will come with a manufacturers’ warranty. This is a guarantee that for a set period of time, say three years, the manufacturer will cover repair or replacement costs in the event of a breakdown. However, you should consider what happens if the appliance breaks down after this period when it is older and more likely to come into trouble? This could end up costing you hundreds, if not thousands, of dollars.
A home warranty covers or partially-covers service, repair, or replacement of major home appliances and systems no matter how old they are. It can provide peace of mind that you won’t suddenly find yourself confronted with a four-figure repair service fee, especially when your covered items are older and no longer under the manufacturers’ warranties.
Save Hundreds Or Thousands of Dollars
Home warranties are offered via contract with either monthly or annual fees. You will get a fixed call fee and annual coverage limits for repairs, which vary depending on the company. When you find yourself in need of unexpected repairs, you can contact your home warranty provider and file a claim. They will connect you with an approved service provider to assess the situation and repair or replace the broken-down appliance.
The costs of the home warranty and call fee are worth every penny, as the warranty has the potential to save you hundreds or thousands of dollars in repair or replacement service fees.
Get Your Home Warranty Today
If your household appliance or system has been properly maintained and still has a breakdown, your home warranty company will send someone to decide if it should be fixed or repaired, and you will only pay the call fee and any service costs that exceed your home warranty’s coverage limit.
As you now know, a home warranty is different from home insurance, covering appliances and systems rather than the house structure and other personal belongings. You have also learned that a home warranty covers your home appliances and systems after the manufacturers’ warranties end. This makes a home warranty a sound investment, for your peace of mind, and financial security.
