Do you value your peace of mind? Do you sleep better if you know that you’ve taken out insurance, limited all your risks and that the future is secure, at least as far as you could ever tell?
If this sounds like you, you might want to investigate a home warranty – it’s a service you can purchase to cover those annoying and expensive costs when essential appliances break unexpectedly.
A home warranty is different from standard home insurance. Here’s the deal: A warranty will cover appliances and systems; whereas, home insurance covers structural damage, such as flooding from a burst waterpipe.
The biggest upside to a home warranty is that your expenses will be more predictable.
While there will be a certain amount of money committed to warranty coverage, you’ll avoid those unforeseen expenses that can take a wrecking ball to your cash flow.
A home warranty can cost upwards of $500 a year, depending on what you ask your supplier to cover.
Whether you need a home warranty depends on your circumstances. Folks living in a new home, where appliances are under their own independent warranty, shouldn’t have cause to take out a policy.
And perhaps competent DIY-ers can handle many of the potential expenses that a home warranty might cover.
Home warranties generally cover the repair or replacement of core home systems and built-in appliances. This frequently includes the HVAC and additional electrical items ranging from doorbells to ceiling fans.
Appliances like dishwashers, ovens and garbage disposals are usually included, but you may find you need to specifically include fridges and washers and dryers.
Plumbing components, including water heaters, toilets, sinks and showers and baths, are usually covered.
These warranties, however, do not usually cover the following:
Walls, windows and doors
Outdoor structures and utility features like hot tubs, pools, garage doors and fireplaces.
Leaks or major broken or collapsed plumbing, or sewage issues.
Claims may be rejected if the warranty issuer identifies a lack of maintenance, unpermitted work on the property, or excessive wear or abuse.
And no payments are usually made for the items that were flagged for replacement or repair before you took out the warranty.