What to Know Before You Purchase a Home Warranty

Here are a few things to keep in mind while you’re shopping for a home warranty.  Also take a look at our article about the top reasons you need a home warranty.

Home warranties are different than homeowner’s insurance and builder’s insurance

Homeowner’s insurance is used to protect your home and its contents from crimes, hazards, and other perils (like severe weather events). Builder’s insurance protects the actual structural components of your home. Home warranties, on the other hand, cover the basic wear and tear of your home’s systems and appliances as they age. They also cover a set of appliances and systems, unlike extended warranties that only cover specific appliances.

In fact, coverage under homeowner’s insurance and a home warranty rarely overlap

As noted above, the two contracts cover very different things and investing in both is a great way to guarantee complete coverage.

A home warranty contract generally lasts for 12 months

At the end of the year, you’ll have the opportunity to once again pay your annual premium and renew your contract if you wish to do so.

You’ll pay an annual premium for the warranty

The price of this premium will vary based on how much you choose to cover, the size of your home, and where your home is located. Most home warranty plans carry an annual premium between $300 and $600.

There’s no limit on the age of the appliances and systems covered

Whether your refrigerator is two or ten years old, you can get coverage of that appliance with a home warranty. And no home inspection is required before the warranty is purchased.

If you sell your home, you can transfer the plan to the new homeowner

In fact, homes that are covered by a warranty sell faster and for higher prices than homes that do not have a warranty. They’re a major selling point for any home and transferring the contract to the new homeowner is a quick and easy process.

A home warranty contract generally lasts for 12 months

At the end of the year, you’ll have the opportunity to once again pay your annual premium and renew your contract if you wish to do so.

You’ll pay an annual premium for the warranty

The price of this premium will vary based on how much you choose to cover, the size of your home, and where your home is located. Most home warranty plans carry an annual premium between $300 and $600.

Protect Your Home and Your Family With Home Warranty Coverage