Home Warranty Guide: What It Covers & Why You Need One
Should You Invest in a Home Warranty?
When considering a home purchase, you may wonder if a home warranty is worth it. What does it include? How much does it cost? And who should cover the expense?
We’re diving into these important questions today—so stay tuned!
What is a Home Warranty?
A home warranty is a service contract that covers the repair or replacement of essential home systems and appliances. Unlike homeowner’s insurance, which covers damage from unexpected events, a home warranty protects you from normal wear and tear.
Why Home Buyers Should Get a Home Warranty
Home buyers often ask whether they need a home warranty. Our answer? Absolutely! A home warranty provides peace of mind and financial security against costly repairs.
What Does It Cover?
Most home warranties cover major appliances, HVAC systems, plumbing, electrical, water heaters, and garage door openers.
How It Works
If an item covered under your home warranty breaks down, you simply file a claim. A service technician will assess and repair the issue. Most service fees range under $100—far less than paying for an emergency repair out-of-pocket.
Cost & Coverage Options
Most comprehensive home warranty plans start at $500-$700 per year. Premium plans, covering additional items like pools and septic systems, may cost more.
Compare top providers for competitive rates and coverage options:
- American Home Shield - Offers customizable plans to fit your needs.
- Choice Home Warranty - Affordable coverage with 24/7 claims service.
- First American Home Warranty - Reliable protection for essential home systems.
Who Should Pay for a Home Warranty?
In most home purchases, we negotiate for the seller to pay for the home warranty— and we are successful 99% of the time.
Do You Need a Home Warranty for New Construction?
New homes typically come with a builder’s warranty covering major systems and appliances for the first year or longer. In this case, an additional home warranty may not be necessary.
Want More Information?
For a detailed breakdown of what a home warranty covers, check out the free home warranty comparison brochure.
