Home Warranties: What You Need to Know

We’ve all heard the same horror stories from homeowners – they bought their house and a week later the basement flooded, the heat pump quit working or the roof began leaking during a thunderstorm.

There is a way to make sure you’re covered if any of these things should happen to befall you after buying a home. A home warranty covers the repair and/or replacement of many major home system components and appliance that can break down over time.

Take care in choosing the company from which to purchase a home warranty. Check reviews, ask friends and family if they’ve heard about the company and also make sure they are reliable and will be there when you call upon them. The warranty company will contract the work out to companies in your area that provide the necessary service so do your due diligence before making your selection.

Other considerations:

  • One year of coverage can range from $400 to $500 for a basic plan with a deductible of $75 to $100.
  • What is covered? Most companies cover heating and cooling systems, electrical, plumbing, appliances and water heater. Some companies allow you to add on coverage of other items, like a refrigerator or stove.
  • Educate yourself about how it works. Set up an account and should you encounter any issues, call the warranty company’s claim center immediately. Don’t attempt to fix it yourself or have someone else do it – if you do, the company will likely not pay for it. Your warranty company will send someone to your house to take care of the problem.

While a home warranty is not required, it is certainly worthy of serious consideration as it will give you peace of mind so that you don’t have to worry about any serious issues popping up in your home.

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