A home warranty is an annually renewable service contract. Most home warranties include coverage for the cost of repairing or replacing covered home appliances such as clothes washers & driers, refrigerators, dishwashers, ovens, and systems such as your home’s HVAC, plumbing and electrical systems. Homeowners insurance does not typically cover mechanical failures, so home warranties can play a critical role in protecting your budget from unexpected and costly repairs. Good home warranty plans allow you to customize your coverage and add coverage for items like garage refrigerators, wine coolers and built-in icemakers or even your pool and spa.
When a covered item inevitably breaks down, your home warranty provider will dispatch a fully vetted and pre-screened service contractor from their network of qualified technicians to your home to repair or replace your item. It’s that simple!
Labor rates for service contractors in many communities can exceed $100 to $150 per hour. Homeowners with a home warranty typically only pay a nominal service fee that ranges from $75 to $100 total. That includes labor and any parts required, regardless of how many hours it takes to repair the item. When covered appliances or systems can not be repaired, the replacement coverage kicks in.
It’s a matter of when, not if a home appliance or system will fail, and it always seems to happen when you least expect it. Even the highest end best made appliances have limited lifespans and will breakdown eventually. And when your refrigerator quits working it’s never convenient for your budget. Without a home warranty’s protection, what can repair or replacement cost?
Fortunately, you can protect your budget from costly, unplanned repair expenses. Most homeowners with a home warranty will file at least one claim within the first year of coverage. In fact, one company reported that nearly two thirds of their home warranty customers filed at least one claim last year, resulting in more than $219 million paid out to repair or replace covered items in their customer’s home.
If you own a home, you should consider the benefits of protecting your budget with a home warranty. You can avoid large, unexpected, and inconvenient expenses. You can save hundreds if not thousands of dollars with a Home warranty.