Purchasing a home is quite an undertaking for anyone. Even with a mortgage, buying a house can require a lot of money upfront. There are deposits, inspections, insurance costs, and closing costs that must be managed immediately. Then, buyers must manage the costs of moving in and turning on utilities. If something breaks down in the home during first year, it can be near impossible to afford repairs. A home warranty can help.
What is a Home Warranty?
A home warranty provides protection for the various appliances and systems in a home. Companies such as 2-10 HBW offer home warranty plans that can help new homeowners with unexpected breakdowns and potentially save them hundreds of dollars in repairs or replacements, especially in that first year.
A home warranty is a service contract that provides coverage for the appliances and systems in the home. For a set fee, homeowners can have these covered items repaired or even replaced. This can be a major benefit for new homeowners that are short on cash due to the buying process.
How Does a Home Warranty Differ from Homeowner’s Insurance?
Homeowner’s insurance is different from a home warranty. Although the two may seem to be similar in their names, one is insurance the other is a service contract. Basically, homeowner’s insurance covers the unexpected whereas a home warranty covers the expected.
No one knows or expects when a storm is going to blow a roof off or when a fire might occur. These and other unexpected incidents are why homeowner’s insurance is so important. It protects a home and its contents when unpredictable things occur.
Everyone knows that, at some point, a refrigerator will break down. Eventually, a furnace will need repairs. Although homeowners may not know when these things will happen, they know they will happen eventually, and often at the worst possible time. A home warranty offers coverage for these situations.
What Does a Typical Home Warranty Cover?
A typical home warranty has two basic parts. A kitchen plan and a systems plan. Often, homeowners purchase these together. The kitchen plan covers basic kitchen appliances, such as the refrigerator, oven, and dishwasher. The systems plan provides coverage for the systems of the home, such as plumbing, electrical, and HVAC systems.
Homeowners can customize their warranty plan to ensure there is proper coverage for all aspects of their homes. They can choose to add coverage for a washer and dryer or even an additional refrigerator. If the home has a pool or spa, they can opt for coverage to help with the repairs and replacement of the main parts of these items as well. A home warranty is customizable to meet the needs of individual homeowners.
How Does a Home Warranty Work?
When a homeowner purchases a home warranty, they enter into a service contract with the warranty provider. The homeowner chooses the type of coverage they want and pays the low monthly fee. They are often charged a set fee they pay each time a problem with a covered item occurs. This fee is considerably lower than the average price of repairs for most covered items, especially furnace repair.
When a problem arises, the homeowner either calls the warranty provider or visits the company’s convenient website to schedule service for the covered appliance or system. The warranty provider will dispatch a repair person as soon as possible. Once the contractor arrives at the home, the homeowner pays the contractor the set fee. The contractor then repairs or replaces the covered item for that fee.
Although a home warranty is not a necessity for homeownership like homeowner’s insurance may be, it is a great benefit that can save homeowners a significant amount of money throughout the years.