The Benefits of Purchasing a Home Warranty


Homeownership has long been considered the American dream, and despite changing housing trends, millions still feel that way.

Many believe owning a home can be a wealth-building tool that provides financial stability over renting. Owners can lock in monthly housing payments for the length of their home loan.

However, keeping a home in good repair is crucial to maintaining its value as an investment, so many owners buy home warranties. These agreements make it easier to budget for repairs, ensure quality service, and even make selling a home easier.

What Does a Home Warranty Provide?

A home warranty is a contract that provides a homeowner with repair and replacement services. The terms of coverage and cost of deductibles are spelled out in the contract, so you know precisely what is covered. Provider websites like also include valuable information about policies.

Repairing HVAC, plumbing, and electrical systems can be expensive, but covering them with a warranty helps homeowners avoid high out-of-pocket costs. You can choose what to include in your warranty. Appliance coverage is common, and optional coverage may cover items like your pool, septic tank, roof or pipe leaks, and even a home well pump.

Why Homeowner’s Insurance Isn’t Enough


Homeowner’s insurance and a home warranty protect against unexpected costs but provide different coverage. Insurance pays for loss and damage due to outside forces like fire, weather, water, or vandalism. Should events damage or destroy your home or belongings, insurance helps you replace things and rebuild. For instance, insurance would pay if a tree fell on your home and damaged appliances or systems.

A warranty pays to repair or replace appliances and systems that fail due to old age or long-term use. Essentially, homeowner’s insurance typically covers the costs of unexpected events, while a warranty pays for expenses like repairing aging appliances, which are somewhat predictable. Warranties offer protection once warranties have expired. Per BobVila, investing in homeowner’s insurance and a warranty offers maximum financial protection.

Appliance Breakdowns Are Expensive for New Owners

Buying a home usually represents a significant investment, and new homeowners often must budget carefully to stay on track financially. Many would be hard-pressed to pay for repairing or replacing a central system like air conditioning during the first year or two after moving in. But, with a home warranty, owners can budget for premiums and deductibles.

While product and contractor warranties protect appliances and systems in newly built homes, those buying an older home with aging appliances and systems can face unexpected, high repair bills. Per TDECU, paying a deductible for a covered repair is generally within homeowners’ budgets, making a warranty’s cost more than worth it.

DIY Repairs Aren’t for Everyone


As any long-time owner knows, repairs are part of keeping a home in good condition and maintaining property values. While some people have the skills, interest, and time to take on required projects, many do not. A home warranty is an excellent option for them.

Even if you enjoy DIY projects, they require tools and equipment, which may be expensive. Many repairs, such as electrical failures, should be done by professionals who work safely and ensure that completed work is up to code. The experts who make repairs covered by a warranty are also efficient and complete work quickly, reducing homeowner inconvenience.

Repairs Are Easy to Arrange

Unexpected system and appliance breakdowns cause problems that can make life more complex, and trying to find a qualified repair professional could add to the problem. You may not have the name of reputable repair providers because you never owned a home before or are new to the area. Locating a trusted company can take time and effort and drag out the problem.

When you buy a home warranty, the provider explains policies and procedures for scheduling work. When you need help, call a given phone number and explain your situation. The warranty company contacts a service specialist, who contacts you and makes an appointment. Once a professional has evaluated your case, they forward the information to the warranty provider, who approves covered charges so the work can begin once the deductible is paid.

Warranty companies use a network of trusted experts who offer fast, reliable emergency service. There are no surprise charges since any deductible is pre-arranged and never goes up no matter how often you need assistance. You can trust providers to stand behind their work.

A Seller’s Warranty Covers Emergencies


When selling a home, you want the best price, particularly if you have already committed to a new property and have a budget based on your existing home’s sale price. As a seller, purchasing a home warranty can protect you against unexpected expenses and ensure your home remains in the best condition to attract buyers. The last thing you need is the cost of an expensive repair while your house is on the market.

Home insurance may help in some cases, but it won’t cover everything. A warranty allows you to cover the emergency for the cost of a deductible. For example, if an appliance failure causes flooding, insurance will pay for damages, not the appliance’s repair or replacement cost.

A Buyer’s Warranty Can Help Sell a Home

House hunters want to spend as little as possible to buy a home because they are making a significant, decades-long investment. No matter how well-cared for your home may be, older appliances or systems can scare away some buyers. Since you are selling, you may not be ready to invest money in upgrades.

Purchasing a one-year home warranty can help. The cost of coverage is much less than replacing appliances. It’s an investment that could be the deciding factor for buyers considering more than one home.

A home warranty helps new and existing homeowners stay on budget by covering the cost associated with unexpected appliance and system breakdowns. Coverage can be customized to meet clients’ needs. A warranty is a good idea for those who want a convenient way to arrange professional emergency repairs. Home warranties also protect home sellers and buyers from sudden repair costs.

Written by Nina Smith