Can You Get a Home Warranty? Why You Might Need One

Can You Get a Home Warranty? Why You Might Need One

The average cost to replace a central AC system is $5,750, while a new water heater was likely to have set you back at about $1,150 in 2021.

For many homeowners, the cost of major repair work (or a system replacement) could be a devastating financial blow. And while homeowner’s insurance has you covered in the event of an emergency, there’s nothing you can do to help pay for normal wear and tear to your home.

Or is there?

In this post, we’ll discuss some home warranty benefits and why you might consider buying one. Keep reading to learn more!

What is a Home Warranty?

People often confuse a home warranty with homeowner’s insurance, but they’re two different things.

Typically, homeowner’s insurance is required when you buy a new or used home. Its main purpose is to cover your valuables in the event of a disaster, fire, or theft.

Meanwhile, a home warranty is designed to pay to repair (or replace) things in your home that break due to age and normal use. These include:

  • Large kitchen appliances
  • Washers and dryers
  • Electrical system
  • Plumbing system
  • HVAC system

Keep in mind that a home warranty won’t cover structural damage, such as broken windows or doors.

Home Warranty Benefits

Is it worth it to buy a home warranty? It’s probably not necessary for new homes. But if you’re moving into an older home with appliances or systems that are nearing the end of their lifespan, it could be a wise investment.

With a home warranty, you’ll pay an annual fee (typically between $500-$1,000), along with a small service fee if you need to call a contractor to your home. Once they determine whether to repair or replace the item, your warranty will pay for those costs.

Not only will this save you a lot of money in the long run, but you’ll enjoy peace of mind knowing help is just a phone call away. This is especially true for older homeowners or anyone without the greatest DIY skillset. 

How to Get a Home Warranty

If you think a home warranty might be right for you, start by taking an inventory of your home’s appliances and systems. What kind of condition are they in? Are any of them still covered under a manufacturer’s warranty?

Next, call reputable home warranty companies to get quotes. Ask your friends or neighbors for recommendations, or contact a local realtor for their input.

Finally, read the fine print before you sign anything. Make sure you understand the terms and conditions, including what’s covered, what isn’t, and what (if anything) you’re expected to pay.

Finding the Best Home Warranty Company

A home warranty gives you peace of mind, especially if money is tight. The upfront costs could make a world of difference if you face an unexpected repair bill or need to replace a major appliance.

Research an HSA home warranty or other providers in your local area to find the option that’s best for you.

Now that you know more about home warranties, what’s next? Our site is full of valuable information for homeowners, so keep browsing!


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