What is a Home Warranty?

Home repairs can get costly and create an unexpected hassle and financial burden. A home warranty is a great way to make those costs more predictable.

A home warranty is provided through a third-party company. For a monthly premium, that is often added to your mortgage payment, you can get discounts on certain repairs and even have others covered completely. Think of it similar to a warranty that you might get on an appliance but it covers multiple areas and systems within your home.

What is Typically Included In A Home Warranty?

Home warranties vary by coverage, premiums, deductibles, and other factors. It is important to shop around to find the right plan for you. If you have an older home, certain systems may need greater coverage. On the other hand, a newer home will likely have fewer maintenance issues so you can consider less coverage to save money.

Things that are often covered by home warranties include:

• Appliances: Refrigerators, ovens/stoves, washer/dryer, dishwasher, and even your microwave can all be covered under the home warranty. Make sure to read the fine print to see exactly what issues are covered. You may need to pay for smaller repairs if they do not meet your deductible. Bigger expenses and even replacements can be covered, which can save you big bucks.
• Heating and cooling: Repairs to your home’s air conditioning or heat systems can be very expensive. With a home warranty, many of these repairs are covered. Some preventative maintenance may also be covered.
• Electrical: Issues with your home’s electrical system can be expensive. They can also be quite dangerous. Having these covered so that you never have to think about how expensive it may be to fix (or consider putting off the repair until it is in your budget) makes sure that your home stays safe.
• Plumbing: Just like electrical repairs, plumbing issues often require a professional and can cause major problems if not fixed right away. Having these things covered by a home warranty makes that big bill less troublesome.
• Various items around the home: Depending on the home warranty, smaller repairs around the home can also be covered. These can include pool equipment, garage door opener, doorbell, jetted tubs, septic systems, and other items. This is where shopping around for the right plan is critical to meet your home’s needs.