Home Warranties: What They Are and How They Work
A home warranty is a service contract that covers the repair or replacement of major home systems and appliances that break down due to normal wear and tear. A home warranty can save homeowners money and hassle when they face unexpected breakdowns or malfunctions in their homes.
A home warranty is different from a homeowners insurance, which covers the damage or loss of the home and its contents due to events such as fire, theft, or natural disasters. A home warranty does not cover these events, but rather the normal functioning of the home systems and appliances.
How a Home Warranty Works
A home warranty works as follows:
- The homeowner purchases a home warranty plan from a home warranty provider, either directly or through a real estate agent. The homeowner pays an annual or monthly fee for the plan, which varies depending on the level and scope of coverage.
- The home warranty plan covers certain home systems and appliances, such as heating, cooling, plumbing, electrical, kitchen, laundry, and more. The plan may also include optional coverage for items such as pool, spa, septic tank, well pump, and more.
- When a covered item breaks down or malfunctions, the homeowner contacts the home warranty provider and requests service. The provider assigns a local contractor from its network to diagnose and fix the problem.
- The homeowner pays a service fee for each service request, which ranges from $75 to $125 depending on the plan and the state. The service fee covers the initial diagnosis and repair or replacement of the covered item. If the same item breaks down again within the contract term, there is no additional service fee.
- The home warranty provider guarantees the workmanship of its contractors for up to one year after the service date. If the same item breaks down again due to faulty workmanship within that period, the provider will send another contractor to fix it at no extra cost.
Read more about Sears Home Warranty: A Review of Plans, Prices, and Benefits
Benefits of a Home Warranty
A home warranty offers many benefits for homeowners who want to protect their homes and budgets. Some of these benefits are:
- It is affordable: A home warranty plan is reasonably priced, starting from $19 per month for an Appliances Plan to $49 per month for a Combo Plan. Compared to the average cost of repairing or replacing a home system or appliance, which can range from $150 to $2000, a home warranty can save homeowners a lot of money in the long run.
- It is convenient: A home warranty makes it easy for homeowners to request service and get their problems fixed quickly and professionally. Homeowners do not have to worry about finding a reliable contractor or paying for unexpected repairs out of pocket. Homeowners can also enjoy peace of mind knowing that their home systems and appliances are covered by a reputable company with a long history and a high customer satisfaction rating.
- It is flexible: A home warranty offers various plans and options that suit different needs and preferences of homeowners. Homeowners can choose the level and scope of coverage that they want, as well as the service fee that they can afford. Homeowners can also add or remove coverage items as they wish.
Conclusion
A home warranty is a service contract that covers the repair or replacement of major home systems and appliances that break down due to normal wear and tear. A home warranty can save homeowners money and hassle when they face unexpected breakdowns or malfunctions in their homes. A home warranty works by providing comprehensive and flexible coverage options, a network of licensed and insured contractors, a service fee for each service request, and a guarantee for the workmanship of the contractors. By choosing a home warranty, homeowners can enjoy affordable, convenient, and flexible protection for their homes.
