Debunking 7 Common Misconceptions About Home Warranties

Home warranties are often misunderstood, but they can be a valuable tool in protecting your investment. In this article, we'll debunk seven common misconceptions about home warranties and provide you with the knowledge to make an informed decision.

Misconception #1: Home Warranties Only Cover Major Repairs

Contrary to popular belief, most home warranties do not only cover major repairs. Many policies include coverage for minor repairs and maintenance tasks, such as leaky faucets or faulty smoke detectors.

Misconception #2: Home Warranties Require You to Use a Licensed Contractor

While it's true that licensed contractors are often preferred, they're not always necessary. Many home warranty companies allow homeowners to choose from a range of approved contractors, and some may even offer DIY-friendly options.

Misconception #3: Home Warranties Only Cover Newer Homes

Home warranty coverage doesn't necessarily depend on the age of your home. Many policies are transferable, so you can purchase a new policy even if your current one is expiring or has expired.

Misconception #4: Home Warranties Are Only Required for Major Renovations

Home warranty requirements vary depending on the state and local regulations. Some states, like California, have more stringent rules, while others may not require a home warranty at all.

Misconception #5: Home Warranties Are Expensive

Contrary to popular belief, home warranties can be cost-effective in the long run. While the initial premium may seem high, many policies include comprehensive coverage and discounts for services like maintenance and repair.

Misconception #6: Home Warranties Only Cover Major Damage

Most home warranties do not only cover major damage, but also accidental damages, such as water leaks or electrical issues. This can provide peace of mind and financial protection for your investment.

Misconception #7: Home Warranties Are Required by Law

While some states require home warranties, they're not universally required. In fact, many homeowners opt out of the program due to its high cost or lack of coverage for minor repairs.

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