Home warranties provide peace of mind for homeowners and financial stability when systems or appliances break down. They also help save time by giving you access to a network of professional service providers.
However, buyers should do their research before choosing a home warranty company. A good place to start is looking at the companies’ customer reviews and reputations.
- Peace of Mind
Home warranties are worth the money for many homeowners because they give them peace of mind that expensive, unforeseen repairs or replacements will be covered. Home warranty companies also provide a network of service providers for all types of systems and appliances, so you don’t have to worry about finding contractors on your own.
However, home warranty companies vary in quality, and you should review the contract carefully to ensure that the plan covers the items you want it to cover. You should also evaluate the company’s reputation based on consumer reviews, government websites and other sources of information.
- Saves Money
Purchasing a home warranty can protect you from the unexpected expenses of unplanned home repairs. However, it is important to do your research on a home warranty company before buying. You should check with the Better Business Bureau and your state’s insurance regulators to see if there are any complaints.
Many homeowners believe that a home warranty is worth the investment because it saves money in the long run. Home warranties are typically much cheaper than the cost of repairing or replacing major appliances and systems. A home warranty company may make a profit by charging a service fee for each repair visit. This fee can add up, especially if a claim is denied. Home warranties provide budget protection by covering the costs of unforeseen repairs and providing access to a network of professional service providers.
- Saves Time
A warranty for appliances can help save time and hassle when it comes to dealing with broken appliances or systems. All you need to do is file a claim with the warranty company, and they will handle all the rest. This means you don’t have to waste time collecting contractor quotes or tinkering with the problem yourself.
Home warranties can be an invaluable investment for new homeowners. They provide reassurance that if something breaks down, they won’t have to pay thousands of dollars out of pocket.
Home warranties can also help save money for sellers who need to sell their homes quickly. By wrapping a home warranty into the sale of their home, sellers can ensure that buyers don’t back out due to unexpected repair costs.
- Reliability
Home warranties are sold by several different companies, and there are differences in the quality of their service. NerdWallet recommends doing your homework to ensure you find the right home warranty company for you. Start by reading home warranty reviews and checking a sample contract to see what it covers and excludes.
Home warranties offer peace of mind, especially for new homeowners who don’t have enough money saved to cover unexpected expenses. But they aren’t a replacement for saving in an emergency fund or for paying cash upfront when a repair or replacement is needed. They also generally don’t cover items that are not in good condition upon occupancy or that have been covered by a previous warranty or service contract. For these reasons, some consumers choose not to buy a home warranty.
- Convenience
A home warranty provides you with access to a network of professional service providers. This makes the process of repairing or replacing appliances and systems much easier for you.
Most companies offer two to four plans for customers, including an appliance plan, systems plan and combo plan. Customers can also customize their own plans by adding coverage for specific appliances and systems.
A home warranty is a great investment for first-time homeowners who don’t have the financial resources to cover major repair costs. But it’s important to read the fine print and understand what exactly is covered before purchasing a plan. You may find that you’re better off putting the money you’ll spend on a warranty into an emergency fund instead. That way you won’t be left with a big bill to pay for something that could have been prevented with proper maintenance.