Home Warranty Archives | Blogging Heros

In 2022, homeowners spent as much as $6,000 on average on home repairs and maintenance. If you want to minimize headaches when caring for your home, you might want to get a home warranty.

Although home insurance can be valuable for covering damage as a homeowner, it has a lot of limitations and is only meant for unexpected disasters and damage. A home warranty can be a great solution if you need additional coverage for your home

So, do you need a home warranty? In this guide, we’ll help you decide whether you need a home warranty or not.

What Is a Home Warranty?

A home warranty is a plan that provides coverage for repairs and replacements in your home. Under the plan, you’ll pay a monthly premium and will be able to get repairs and replacements as needed.

A home warranty plan may include coverage for repairs to appliances as well as to parts and components that are part of your home’s systems. A home warranty will cover major appliances as well as plumbing, electricity, and your HVAC systems.

Home Warranty Vs Home Insurance

Although many people confuse the two, a home warranty is not the same as homeowners insurance.

Homeowners insurance is only meant to provide coverage for unexpected losses due to disasters such as fire or weather damage. A home warranty plan, on the other hand, provides coverage for appliances and systems that are in need of repair or replacements due to normal wear and tear.

Having both is ideal since they each cover different things.

How Much Does a Home Warranty Cost?

The cost of a home warranty will vary based on the specifics of the property you own. However, a home warranty will generally cost around $300-$600 per year. This may need to be paid all at once or in installments, depending on the provider.

In addition to this, you’ll pay a flat fee to a contractor when you need a repair. This will typically be between $75-$150.

Some companies will require you to pay a deductible on the repairs that you get and there may be other fees as well. This will depend on the specifics of the home warranty you have.

Be sure that you read the fine print and understand a home warranty policy fully before you choose one. If you’re looking for a home warranty, be sure to check out Jacob Realty’s home warranty resource.

Who Pays for a Home Warranty?

If you’re purchasing a home, you may be wondering whether you’ll need to pay for a home warranty or not. Whether a home warranty is included or not will change based on whether you’re purchasing a home in a buyer’s or seller’s market.

Generally, it’s more common to see a home warranty included if you’re buying in a buyer’s market. A seller may want to sweeten the deal and provide an incentive to purchase the home. Offering a home warranty can help.

In a seller’s market, it’s less common to see a seller pay for a home warranty when selling a home. In this case, the buyer will pay for a home warranty if they decide they want one.

What Do Home Warranties Cover?

The things that a home warranty will cover fall into one of two categories. This includes home appliances and systems.

A home warranty will cover major appliances including a refrigerator, stove, dishwasher, washing machine, or dryer. However, a home warranty plan doesn’t usually cover smaller appliances.

Another thing that a home warranty will cover is home systems. Systems include HVAC units, plumbing systems, electrical systems, and any system that’s essential for living in your home.

When you have a home warranty, repairs, and replacements become straightforward. You’ll be able to get the service you need from a contractor for a flat fee.

Keep in mind that the amount of service and maintenance that’s included will vary based on the specific home warranty plan you have.

Are Home Warranties Worth It?

A home warranty isn’t the right choice for every homeowner. You’ll want to think about your needs carefully when deciding whether you should get a home warranty or not.

Here are a few reasons it may be worth getting a home warranty:

You want to have peace of mind when it comes to home repairs and replacements
You want fees and costs to be clear and consistent
You don’t want to spend a lot of time searching for reliable contractors when things go wrong

Some reasons you may not want to get a home warranty include the following:

You want to have more control and choice over the items you install and the contractors you hire
You anticipate that very few repairs will be needed
You want to avoid dealing with the fine print and potential disagreements with your home warranty company

Although a home warranty plan can keep your costs consistent when it comes time to make repairs, there are some drawbacks.

You’ll have to work with your home warranty company closely and they may end up denying claims that are completely valid. You’ll also have less control over the contractors you use and the specifics of replacements and repairs in your home.

Do You Need a Home Warranty?

So, do you need a home warranty? Depending on the needs of your home, it can be well worth getting a home warranty. A home warranty can simplify repairs and can reduce your costs, so consider getting one when purchasing a home. Need more home and real estate tips and advice? Find more interesting guides by browsing our blog now.

Those who have a home or planning to buy one might of course be wondering what is the possible difference between home insurance and a home warranty. Well, the discussion on home insurance vs. home warranty is of course a never-ending one but it is also true that both aspects are worth investment and are in use from a better safety point of view. If anything goes wrong then it is the home insurance policies or the home warranty that shall be taken care of the same. Since there is a wide range of protection both these options offer, it is important to understand the role of each of them when it comes to home protection.

Key points to remember:

l Home insurance offers better protection to not just the home but also the personal belongings such as the perils like theft or fires. It ensures the protection against liability in case the party gets injured when on the property.

l On the other hand, a home warranty brings a discounted repair and replacement solution for the home system and appliances such as special systems and plumbing.

l For those who have a mortgage, the lenders need to buy a home insurance policy. The optional part here is the home warranty

l For better peace of mind, it is better to choose both the home insurance policy and home warranty.

l Before understanding the difference between home insurance vs. home warranty it is important to understand both the concepts and how they can be helpful.

Know more about home warranty:

A home warranty is one effective service contract that offers better help on paying for the replacement and repairs which are the part of replacement to be covered. This is usually on the basis of the annual fee or the monthly charges. If there is an appliance of the system which is covered as per the plan and breaks down the home warranty company can help in this. It shall send a technician to diagnose the problem and fix the same. These plans are usually in the coverage and themselves.

If a real estate transaction already included the home warranty at the time of purchase the coverage usually begins right after the home is owned. But if the warranty for the home is already purchased then there might be a waiting period of 30 days that need to be followed before the effectiveness of the coverage begins.

What Does a Home Warranty Cover?

Different systems and appliances are part of the home warranty whether in pre-owned homes or new ones. Most of the companies have three different plans. This includes:

l System Plans (e.g., HVAC, and electrical systems)

l Appliance Plans (e.g dishwasher, and refrigerator)

l Combination Plan (everything included in the system and appliance plans)

How Much Does a Home Warranty Cost?

The price of a home warranty can either be an annual fee or the monthly one. There might be some discounted deals that the owner can access. Depending on the location and the plan that is purchased, the services will be offered.

There is also a service fee that is included. This is usually paid at the time when the owner requests the repairs of the appliances or systems that are covered.

What Is Homeowners Insurance?

Home insurance is one of the property insurance types that helps in protecting the house against any damages or losses that are caused because of the covered perils. As per the home insurance information institute, there is a policy of the standard homeowners that comes with four essential coverage types. This includes coverage for personal belongings, the structure of the home, Additional living expenses, and Liability protection

What Does Homeowners Insurance Cover?

Usually, such type of insurance covers the belongings, home and even liability. It offers protection against perils and disasters as well:

l Theft

l Volcanic eruption

l Weight of ice, snow, or sleet

l Windstorm or hail

l Riot or civil commotion

l Vandalism or malicious mischief

l Falling object

l Fire or lightning

l Explosion

l Damage caused by aircraft

l Smoke

l Sudden and accidental tearing apart

l Damage caused by vehicles

l Accidental discharge

l Freezing of a plumbing

l Sudden and accidental damage

Such type of insurance also covers the personal liability of the injured party and the property while they were in the property itself. The common liability claim includes home accidents, dog bites, and even falling off the trees.

How Much Does Home Insurance Cost?

The premium of the home insurance can vary as per the factors like rebuilding cost of the home, personal belongings value, home insurance claims, marital status. Usually for the home that is owner-occupied the charge can be $1,211.

Understand the Home Insurance vs home warranty difference:

One of the primary differences between both concepts is the simplicity. Talking of which insurance is much simpler and can be availed quickly. The insurance usually protects the whole home from events like damages caused due to weather or any unexpected events like theft. In the case of a home warranty, well it mostly covers the repairs and maintenance cost. It is one of those options that confuse on protecting the budget that often gets disturbed when there are frequent repairs expenses that an owner must bear. The home warranty plan protection can save ample money and there will not be any kind of headache to find a reliable service as the contractors in this field are the trusted ones.

Conclusions:

A home warranty covers the price of a major household system breakdown while home insurance covers the personal belongings and even the home. It also offers coverage against personal liability. In case there is a mortgage then the lender shall offer the home insurance policy. To make a wise decision, both choices are good and having both these options is worth the investment. No doubt that a home warranty is an optional approach. But it certainly can offer additional protection with stress-free time. This makes sense especially when the systems or appliances are not covered in the standard warranty and there are high chances of it breaking down.