• calendar_month September 7, 2024
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What is a Home Warranty, and why do you need one? A home warranty is a renewable home service plan that offers discount repair and replacement services for household appliances and systems. Terms may vary, and coverage depends on the type of warranty you purchase. It does not provide the same coverage as homeowners insurance, which protects against damage to personal property and the home structure, such as fire damage or theft. 

Purchasing a home warranty policy as a new homeowner can provide peace of mind and financial protection. As a new buyer, you're stepping into unfamiliar territory with your home’s systems and appliances, many of which may face normal wear and tear. A home warranty covers the repair or replacement of major components like HVAC systems, plumbing, electrical systems, and kitchen appliances, which can be expensive to fix.

While homeowners’ insurance covers damage from events like fires or storms, a home warranty focuses on the internal systems that keep your home running smoothly. If something breaks down unexpectedly, the warranty can save you from the high out-of-pocket costs for repairs. Instead of scrambling to find a reliable contractor, your warranty company typically handles the service calls, making it convenient and stress-free.

For first-time buyers, a home warranty offers an extra layer of security, especially in older homes where systems may be nearing the end of their lifespan. It can help you avoid large, unexpected expenses and budget more effectively. Overall, investing in a home warranty is a smart move to protect your new home and your finances.

Choosing the right home warranty company that fits your needs, lifestyle, family, and home. Your coverage should focus on your appliances and systems, especially if these items are older. Home warranty companies offer a range of plans and pricing, so go with whatever checks the majority of your coverage boxes and the one that fits your budget. Do your homework and if you're not sure where to start, your real estate agent is a great resource to ask, or friends and neighbors.   

Lastly, thoroughly read the final line of the contract before you finalize the coverage so you're aware of what isn't covered, any limitations to coverage, and replacements.