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Here’s Why You Need a Home Warranty

Owning your own home is super fulfilling and a great way to build wealth for your family’s future. But it’s also a big responsibility because when something breaks down, you have to bear the burden of repairing it yourself or paying someone else to repair it. A home warranty is a good idea. It’s a service contract for your major home systems and/or appliances, so you can get them fixed or replaced if they break down due to normal wear and tear during the coverage period. After you pay your plan costs and trade service call fee, the rest of the costs are covered, up to your plan limits. You’ll save on home repairs and get service quickly when you need it. You might even get additional perks or access to exclusive plan add-ons.

1 You Could Save Thousands

It’s true that not every home repair will cost thousands — the average emergency repair costs $416. That’s still not a small amount of money to have to lie around, especially if you’ve had a recent change in financial circumstances, or even if you’ve just bought your home and depleted much of your savings on the down payment, closing costs, moving costs, and everything else that goes with buying a new house. And, while most appliance or home systems repairs will only cost a few hundred dollars, you can easily end up spending thousands on a home repair. A water heater replacement can cost more than $1,000, and an HVAC replacement can cost several thousand. Replacing a large appliance, like a refrigerator or stove, isn’t cheap either.

A home warranty can defray many of these costs. When you have a home warranty, you’ll pay monthly or yearly plan costs to the provider, and if you place a service call, you’ll pay a trade service call fee to the service professional who comes to your home. Otherwise, most repairs should be covered, and a decent home warranty provider will even pay to replace your home system or appliance if the service provider determines that a replacement is necessary.

Before you buy a home warranty, make sure you understand what the plan covers, so you’re not disappointed when it’s time to request service. Look for a provider that covers appliances and home systems regardless of how old they are or whether there are maintenance records available. Most plans have coverage limits, so if you end up needing one of the costlier home repairs, you might have to pay some of the costs out of pocket, but with your home warranty coverage, you could still save big.

2 Getting Service Is Easy

Sometimes the hardest thing about owning a house is finding someone to do repairs, maintenance, or other home services work. When you buy a home warranty, you’re getting access to a network of local service providers who have already been background checked and who come highly reviewed by previous customers. You don’t have to investigate anyone’s licensing, read reviews online, ask around, talk to anyone, or get any quotes. You can just make a call or submit an online form to get service. Often, service providers are available immediately to take your call.

3 You Could Get Additional Perks

Basic home warranty plans offer coverage for home systems, like electrical, plumbing, and HVAC, or appliances, like refrigerators, stoves, dishwashers, washers, and dryers, and built-in microwaves. You can also buy basic plans that cover a combination of both home systems and appliances.

Various providers offer different levels of plan customizability — with some, you can pick and choose exactly what you want coverage for, so you’re not paying to cover anything you don’t have. You can also usually choose additional add-ons for things like pools and spas, guest houses, septic tanks, well pumps, and even electronics. Many providers also offer additional membership perks, like discounts on maintenance services and home products.

If you own a home, you need a home warranty. It can help protect your finances from the burden of an unexpected, large expense without sacrificing your home’s upkeep. It’s the smart thing to do to protect your home, your budget, and your lifestyle.


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