When homebuyers have mortgages, they must also have insurance to protect the lender from losses related to fire, storms, theft, and on-premises injuries. The coverage offered by a homeowner’s insurance policy is quite extensive, leading many to ask why they need a home maintenance plan.
These plans, also known as warranties or service contracts, cover a home’s systems and appliances when they need to be maintained, replaced, or repaired. Homeowner’s policies don’t cover ordinary wear and tear, and that’s why a warranty is such a good investment.
Should I Get a Home Warranty?
Service plans may be worthwhile depending on your needs as well as the answers to questions like:
- Do I want to lower my out-of-pocket repair costs?
- How old is my home?
- Are my vital systems and appliances in good condition?
- Can I afford to replace an expensive component like a pool or a roof?
- Do we have money set aside for unexpected costs?
- Can I do my own repairs?
- Do I have the time to find and hire a contractor myself?
Home warranties are a great option for new homeowners who have used up their savings and want a little more peace of mind. Call or click today to learn how we can protect you from the unpredictable.
What Do Warranty Plans Cover?
Home service contracts typically cover components such as:
- Appliances. A 2-10 warranty will cover your stove, refrigerator, dishwasher, dryer, and washing machine, among other appliances.
- Systems. These plans cover a home’s basic systems, such as electrical wiring, plumbing, HVAC, and water heaters—basically, anything that’s needed to keep the home running. With regular service inspections and maintenance included, a home warranty plan will help you keep small problems from turning into big and expensive issues.
Most warranty plans don’t cover spas, pools, septic systems, roof leaks, well pumps, and the like. However, add-on coverage may be available; call us for details.
What’s the Difference Between a Home Warranty and Homeowner’s Insurance?
While many people use the terms interchangeably, there are some notable differences between home warranty plans and homeowner’s insurance. While insurance policies cover specific types of damage in exchange for the payment of a monthly premium, warranty plans cover replacements and repairs due to age, wear, tear, and usage. Instead of a monthly payment, you’ll pay a flat service fee when a claim is reported.
Home Warranties Are a Strong Selling Point
In today’s competitive housing market, a motivated seller may pay for a home warranty plan. Conversely, buyers typically cover their own plans when the market is down. Sellers often buy warranties to sweeten the deal or protect themselves from post-sale complications. Either way, a home warranty from 2-10 provides a strong selling point.
Protect Your Home and Your Wallet
While homeowner’s insurance provides valuable protection for owners and lenders alike, a warranty plan goes above and beyond. Learn more about our plans by giving us a call or click to chat with one of our coverage experts.