Home Warranty Guide for Homebuyers

Owning a home and maintaining it well involves a variety of costs in the long run. One of the most notable among these are the various repairs that different appliances and systems might require over time. Now, many of these expenses can be quite high and can put homeowners under financial stress. This is when home warranty plans can be helpful. A home warranty from reliable providers like Select Home Warranty effectively offers protection over such unexpected expenses. 

What exactly is a home warranty?

Many homebuyers lack knowledge regarding the concept of a home warranty and confuse it with other contracts, such as a homeowner’s insurance. However, this is actually an entirely separate type of warranty offering coverage against specific expenses. A home warranty contract covers the repairs of major systems in a home. Certain home warranty plans also cover expensive replacements of systems that have deteriorated beyond repair.  

How does a home warranty differ from a homeowner’s insurance and a manufacturer’s warranty?

If you aren’t unaware of the differences, a home warranty might seem similar to a manufacturer’s warranty or a homeowner’s insurance at the first glance. Here is how they differ:

Manufacturer’s warranty vs home warranty

• A manufacturer’s warranty covers only a specific system or appliance, while a single home warranty contract would cover a range of systems. 

• A manufacturer’s warranty is valid only for a set period of time. Home warranties, on the other hand, work as renewable annual contracts. 

Homeowner’s insurance vs home warranty

• A homeowner’s insurance covers the losses that are a result of natural disasters, fires, thefts and other unexpected problems. A home warranty offers cover against damages that are a result of the normal wear and tear of appliances and systems. 

• Home warranty and homeowners’ insurance are complementary to each other. For instance, a home warranty wouldn’t cover the repairs of an appliance that has suffered water damage from a leaking pipe, a homeowner’s insurance would. On the other hand, the latter wouldn’t offer coverage for the repairs of an appliance that has suffered damages independently. 

What are the systems or appliances that your home warranty would cover?

The range of coverage would really depend on the home warranty contract that you purchase. The leading home warranty providers offer various flexible plans, covering different appliances and systems. While some plans cover only certain specific appliances, others allow you to choose. Some of the systems that usually fall under the coverage of home warranties are:

• HVAC

• Plumbing 

• Water heaters

• Refrigerators

• Dishwashers

• Microwaves

• Stoves

• Electrical system

How cost-effective are home warranty plans?

While buying and renewing a home warranty plan would incur costs, it is actually a cost-effective way to protect yourself against major expenses. For instance, a large failure in the plumbing system of your home can be quite costly to repair. If you have a proper home warranty contract covering the system, you wouldn’t have to spend much on the repairs and replacements. 

Home warranties are available at various costs. Considering that you choose one of the leading home warranty companies, you should be able to customize the contract to a great extent. This would allow you to omit the coverages that you do not need and pay only for the coverages that would be useful to you. 

How does the home warranty work?

In case you worry that claiming your home warranty might be complicated, you may relax knowing that the process is actually quite easy. When a covered appliance or system goes wrong, all you have to do is report the problem to the warranty provider. They would then send a professional to assess the problem and see if the warranty covers it. In case the claim is successful, they would likely get i2n touch with a relevant service provider and send a repairman to fix the issue. If the contract includes replacements and repairs aren’t enough to fix the issue, the warranty company would then arrange for the replacement of the system or its components. 

 What does a home warranty not cover?

In order to be able to make an informed decision, one needs adequate knowledge regarding what a warranty plan covers and what it doesn’t. Here are some of the cases for which your home warranty coverage may not be applicable:

• Ill-maintained appliances

• Regular seasonal maintenances

• Structural components of your home

• Premier or alternative home systems

• Cosmetic repairs

• Damages that usually enjoy the coverage of a homeowner’s insurance

Things to consider before getting a home warranty plan

While choosing the right home warranty contract for your home, you would want to consider the following factors: 

• Coverage limits

• Claim limit

• The procedure of getting a service professional

• Replacement option

• The reputation of the warranty provider

A home warranty is essentially an investment that you would be making to safeguard yourself against high and unexpected expenses. It is necessary to choose the best home warranty, such that you wouldn’t face any problems at a time when you really need the coverage.