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Repair & Maintenance

Home Warranties: Are They Worth It? What You Should Know

Let us take you through the idea of a home warranty and describe how a home warranty really can help you plan for your financial future.

Contractor Network

You were probably asked about it when you purchased your house. It’s also likely brought up when one of your appliances breaks down. But is purchasing a home warranty worth it in the end? Or is it just a waste of money?

Let us take you through the idea of a home warranty and describe how a home warranty really can help you plan for your financial future. Here are answers to some of the most frequently asked questions about home warranties, as well as some genuine home warranty advice.

What is a home warranty?

home warranty is a contractual protection plan (usually for a one-year term) for major components of your home’s most critical systems and appliances, such as your heatingair conditioningrefrigeratorwashing machine and dryer (to name a few). Basically, if something goes wrong with your covered appliance or system during regular use, your home warranty will help cover the cost to repair or replace it  In other words, it’s a protection plan for your budget — better enabling you to spend your hard-earned money on the things you want versus the unexpected things you need.

What does a home warranty cover?

Rather, what major appliances and system components does your home have? A dishwasherHot water heaterGarbage disposal? From the doorbell at the front door (yes, you read that right!) to the pool in the back yard, a good home warranty provides coverage for a wide range of items.

What’s the difference between a home warranty and homeowner’s insurance?

If you have a mortgage, you likely have homeowner’s insurance. But that doesn’t necessarily mean you’re off the hook in the coverage department. Sure, homeowner’s insurance covers your home and belongings from accidental damage due to theft, storms, fires and natural disasters. A home warranty, on the other hand, covers system components and appliances that fail from age and standard wear and tear.

What’s the difference between a home warranty and a manufacturer’s warranty?

Both a home warranty and a manufacturer’s warranty offer service, repair and replacement of specific appliances and systems. The main difference, however, is that each manufacturer’s warranty covers only one specific system or appliance,  is often of limited duration and many are only applicable to the person who initially bought the system or appliance. For example, if you just moved into a house that’s already equipped with the necessary kitchen appliances or if the appliances were all older and beyond the manufacturer’s warranty period, you wouldn’t be able to take advantage of any of their manufacturers’ warranties. You would, however, be able to get them covered under a home warranty.

Which home warranty is the best?

Not every home warranty plan is the same. Coverage options vary widely among providers, and ensuring you get the protection you need — without paying extra for protection you don’t need — can sometime be tricky. Your best option will be to go with a company that provides flexible plan options based on your needs and budget. Don’t just stop there, though. Be sure to ask about any pre-existing conditions, limitations, exclusions and fees that may apply, so the coverage fits your particular situation and lifestyle. And, most of all, go with a company that’s credible, knowledgeable and experienced — a company with a stellar reputation will likely provide stellar home warranty coverage.

As a homeowner, you know that it’s not a matter of if the appliances break down — it’s a matter of when. Your financial security is already top of mind. Take some of the load off by protecting your budget against those unexpected covered costs with an American Home Shield® Home Warranty. After all, we’re the industry founder and leader with over 45 years of experience and 1.7 million customers.

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