Whether you are a seller or a buyer, you are sure to have come across a home warranty provider. With 2024 trends in the appliance industry and the real estate industry, buying a home warranty has become a basic requirement.
As a seller, you may purchase a home warranty to sweeten the deal for a potential buyer. On the other hand, a buyer may purchase it to have some peace of mind when purchasing an old house or when investing in an unrenovated space.
Whatever your purpose may be, the decision to purchase a home warranty can depend on a lot of factors, and it needs to be made with the utmost care.
This is why we have curated a guide for you that tells you everything you need to know about buying a home warranty in 2024.
What Is A Home Warranty?
A warranty is essentially a service contract between you and a warranty provider to cover your home appliances and systems. It can be very helpful and come in handy when an appliance in your home breaks down.
Sometimes that damage can be so excessive that you might need to replace the entire appliance or even order replacement parts. These repairs and replacements can get very expensive very quickly.
You might not be able to afford all of these without the help of a warranty. These repairs may also be so advanced that you may not be able to repair them on your own.
If the system requires new parts, then you will need to know hardware providers that carry the parts for your specific company appliances, etc. All of these are reasons enough to buy a home warranty that covers systems in your house.
What If I Already Have Home Insurance?
While it is a valid thought to think that you do not need a home warranty just because you have home insurance already, the two do not serve the same purpose. They are not interchangeable.
You should purchase both if you have the funds to do so, as they are both necessary to protect your home from damage.
Insurance mainly only covers your house from accidental damage caused by unforeseen circumstances such as natural disasters. These can be anything from tornadoes and hurricanes to floods and earthquakes.
A home warranty, however, covers specific systems and appliances in your house that require repair or replacement work. These do not have to be caused by unforeseen circumstances and account for an appliance’s general wear and tear over time.
You should invest in both types of protection as they may go hand in hand too. If your pipes burst due to freezing temperatures and end up breaking the dishwasher, the damages can fall in either category.
You might have to make adjustments on both ends. If you have only one of the two types of protections, chances are that your insurance agent may say that this falls under warranty coverage instead, which you do not have.
Similarly, if you only have a warranty, your warranty agency may refuse to pay as the event was caused by a natural phenomenon.
To protect both your home and your sanity, be prepared with both forms of protection.
What Should Be Covered?
Home insurance and home warranty contracts are full of technicalities and fine print. It is your responsibility as the homeowner to make sure you are taking all the necessary steps to protect your home.
This means that you will have to pay close attention to what is and what is not covered under your warranty. You will also have to be extremely careful about the fine print and what each coverage claim means.
Many times homeowners make the rookie mistake of thinking that if an appliance is covered, it means the entire appliance system is covered. However, that is not always the case.
If you add your washing machine to the list of covered appliances, this does not mean that the plumbing system attached to your washing machine is also covered.
A common mistake is that people think if it’s not mentioned explicitly, it’s still covered as it is integral to making the washing machine work. You should assume that anything not mentioned explicitly is not covered. Err on the side of caution when it comes to coverage of appliances.
Your warranty should cover almost all systems in the house, such as the electrical system, plumbing system, heating system, and even the sewage system. It should also cover all appliances that you have in your house, such as a fridge, washing machine, dishwasher, dryer, oven, etc.
While these are what standard houses may need to be covered, there are many other things that you may choose to get covered based on the size of your house, the age of your house, and the budget that you have set for this purpose.
If you have a home gym, a pool, a jacuzzi, or a home office, then you might need to buy extra coverage for these items. The more luxury appliances and fixtures you have in your house, the more you should reserve for repairs.
How Much Should I Pay For Warranties?
Warranty prices can vary quite a bit from provider to provider, so make sure to read all documents carefully as you try to understand what you are being charged for.
The average price for home warranties for standard homes can be anywhere between $400 – $1000 per year. This comes out to about $33 – $83 per month.
If you have a luxury house or luxury fixtures/appliances, average warranty costs may not apply to you.
How Should I Buy?
The current home warranty provider market is full of multiple companies offering different types of coverage. As such, buying home warranty in 2024 can get confusing and overwhelming to choose one that fits all your needs.
Not all warranty providers offer custom add-ons, and if they do, they are usually very expensive. In these circumstances, it is necessary to understand what to look for.
Not only do you need to look at the types of coverage offered, but also factors such as reviews, customer service, and ratings should be considered. By paying attention to these factors now, you can ensure a smoother experience when the time to file a claim comes knocking.
You should see what current customers are saying about the company and how satisfied they are with the service provided to them. Try to avoid relying on paid reviews as these may not always be truthful.
Another thing to keep in mind is the claim process that the company uses. For example, many companies may require you to fill out long forms and estimate the price of all appliances before doing anything. Some may offer a claim service that files the claim for you instead of you having to deal with the paperwork.
Once the claim has been filed, how quickly the repair takes place is also an important factor to consider.
For example, if your chosen company takes 4 – 5 business days to process a claim and then an additional 3 – 5 days to send a repair technician, it can make it impossible to continue living in your home. You cannot live without heat for that long in cold weather or live without a fridge for that long.
You need to find a provider that understands these concerns and sends someone as soon as possible on their end. Additionally, the repairs should not be done haphazardly.
You, as a customer, should not have to choose between quick repairs or quality repairs. The company should be willing to do whatever is necessary to return the broken appliance to its original condition.
Finally, you need to investigate what the company terms are for appliances or systems that technicians determine to be irreparable. This happens more often than you might think which is why it is best to be prepared.
For example, if a specific part used in your oven is not available on the market anymore, how does the company go about fixing this situation? You know you have a good warranty provider if they have clauses in the warranty for these situations.
A good provider will offer an appliance replacement or offer cash instead so you can buy your new appliance. This is ultimately the best-case scenario when it comes to buying a home warranty.
Conclusion
Buying a home warranty in 2024 does not have to be complicated at all. If you follow the steps outlined in this guide and vet your provider correctly, you can have a great experience.
By being meticulous and stressing about the details now, you are setting yourself up for success and peace when the time to claim your warranty comes.
All in all, buying a home can be a stressful yet rewarding experience. If you try your best to read the fine print and seek advice from experienced professionals, you are bound to get it right.
