Here’s Why You Need a Home Warranty

Renting has its advantages — and one of them is being able to call the landlord when something breaks. You don’t have to worry about finding service professionals, scheduling repairs, or, perhaps most importantly, paying for them. But that all changes as soon as you close on your own place and get the keys.

As a homeowner, you alone are responsible for your home’s maintenance and upkeep. And it can quickly get away from you. Personal finance experts recommend planning to spend between one and four percent of your home’s value on repairs and maintenance each year. That’s not chump change, especially since your home is likely the most valuable thing you own. A home warranty can help you cover those repair and maintenance costs, which can easily crop up when you’re not ready for them.

Unlike homeowners insurance, which protects your home’s structure and contents against catastrophic damage, a home warranty provides coverage to help defray the costs of normal wear-and-tear breakdowns of home appliances and systems. When a covered system or appliance breaks down, you just put in a service request with your home warranty provider, and they’ll send someone out to fix it.

Protect Your Budget and Savings from Unexpected Expenses

Home warranty plans come with fixed costs, which makes them much easier to fit into a budget than unexpected repairs, which can cost anywhere from a few hundred dollars to ten grand or more, depending on what goes wrong and how catastrophically it does so. When you buy a home warranty, you’ll have the benefit of fixed monthly plan costs, fixed trade service call fees, and fixed plan deductibles. All of that information can help you better allocate room in your budget for home maintenance and repair costs.

When you own a home warranty, many home repairs, like major appliance repairs, will be fully covered, so all you’ll have to pay will be the trade service call fee. That makes fitting sudden repairs into your budget much easier, and it helps you save more of your money for larger repairs that aren’t fully covered, home renovations and updates, new furniture, and other stuff you need when you own a home. Even when a large systems repair, such as an HVAC replacement, isn’t fully covered, home warranty coverage can defray much of your costs, saving you thousands.

Get Peace of Mind When You Have Older Appliances and Home Systems

Appliances don’t last forever — the lifespan of most large appliances, like refrigerators, washers and dryers, ranges — is about 15 years. Many appliances, like microwaves and dishwashers, and trash compactors, only last about six to 10 years. It’s not a question of whether something will break down in your home, but when.  You probably don’t need a home warranty if you’re in a brand-new house with brand-new appliances — most manufacturers offer warranty coverage on their appliances for at least a year, and builders guarantee structural elements of a home for one to 10 years, depending on local laws. But if your home systems or appliances are getting older, a home warranty can bring you the peace of mind that comes with knowing that they’re still covered. Got an older home filled with newer appliances? You can find coverage for just your home’s systems. More worried about your appliances than your home systems? You can get coverage just for appliances. Many plans allow you to customize your coverage so you’re only paying to cover exactly what you need to cover.

Take the Hassle Out of Finding Contractors

Finding someone to fix a broken appliance or home system is almost worse than fixing it. The best contractors are kept busy, and it can be hard to even know where to start looking to find someone reputable. Plus the time it takes to interview different candidates, get quotes, perform background checks, and check licensing can seem like too much to bear when your fridge has broken down or your HVAC has gone out on (what at least seems like) the hottest day of the year.

When you have a home warranty plan, you don’t have to worry about all of that. Your home warranty provider has relationships with all of the best local contractors in your area, so when you call for service, they’ll already know who to send. They’ll have done all the vetting and background checks, so you don’t have to. Instead, you can get your repair done as fast as possible.

A home warranty is an easy and affordable way to make room in your budget for those unexpected home repair costs. Don’t face home breakdowns alone. With a home warranty provider in your corner, you’ll always come out on top.

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