Home warranties are contracts between homeowners and service providers that guarantee certain repairs, replacements, or services for a set period of time. While they may seem like an added expense, home warranties can provide significant long-term benefits for homeowners.
What is a Home Warranty?
A home warranty is a contract between you and your home's service provider that covers certain repairs, replacements, or services for your home. It typically includes coverage for major systems and appliances, such as plumbing, HVAC, electrical, and structural issues.
Long-Term Benefits Of Home Warranties
A well-maintained home with a comprehensive warranty can save you money in the long run. Here are some of the benefits: Not having to pay for costly repairs, avoiding financial losses due to unexpected maintenance needs, and having peace of mind knowing that your home is protected.
Common Types Of Home Warranties
- Cause-and-effect warranties: Covers the cost of repairs and replacements caused by a specific issue or cause, such as a leaky faucet or faulty electrical wiring.
- Accidentals warranties: Covers minor issues that occur during normal use, such as a clogged drain or a broken appliance.
- System warranties: Covers major systems and appliances, such as HVAC, plumbing, and electrical systems.
Example Case Study
Let's say you buy a home warranty that covers your roof for 5 years. If your roof is damaged due to weather conditions, the warranty will pay for the cost of repairs or replacements.