Understanding what a home warranty is and whether you need it

Understanding what a home warranty is and whether you need it
 OMG Ellie 2/20/2019 8:56 AM

As a homebuyer, it can be overwhelming to know what you need to have in place  in order to protect your new investment - your house. In almost all cases, this is in the form of home insurance; however, that’s not your only option. You can also use a home warranty to protect major investments in your home.  

How does a home warranty work?

Unlike your run of the mill homeowners insurance, a home warranty will cover appliances, plumbing and electrical systems inside and around your home. A home warranty plan will not cover structural damage, weather related damage or other homeowning crisis but it does cover replacement and repair on major appliances, washer and dryers, HVAC systems and other systems in place. This all depends on the plan you choose, a majority of your household appliances can be covered for repairs.

Although homeowners insurance is a different form of home protection, a home warranty does have a similar system of reporting broken household appliances. By calling your home warranty company, you can get your appliance inspected and receive a quote for repairs.  

As part of a home warranty agreement, there are certain deductible that you will need to be paid at the time of the repairs. A deductible for a home warranty can range anywhere from $75 to $100 depending on your plan.

What you need to ask yourself before getting a home warranty?

In order to know if a home warranty is meant for you, you need to ask a couple questions before you decide.

  1. How much wear and tear do my appliances already have?
  2. Am I going to want to upgrade any of my appliances in the near future?
  3. What problems do my appliances have already?

Depending on your answers to these questions, will depend on if you think a home warranty is the best option for you.

Why should I buy a home warranty?

The benefits of a home warranty may be overlooked by most homeowners. But, when it comes to dealing with replacing broken household appliances it comes in handy! Not only does it protect your home, but it protects your wallet from spending more than your deductible on major appliances, such as, a furnace, air conditioner or water heater. Also, a home warranty means that you know who to call when there is a problem with an appliance.

How much will a home warranty cost?

As far as payment goes, most home warranties can cost anywhere from a couple hundred dollars to $1000 - based on the plan. Meanwhile, other home warranty companies offer monthly payment plans that give homebuyers an alternative to protect their home. Some other fees that might be included during the repairs process is a co-payment to the contractor who works on the fixing the problem.

In the end, it’s your decision  to add a home warranty plan onto your other costs of owning a home. A home warranty is valuable to have as a part of your homeowners insurance to save you from future mishaps that may take place.


For answers to your questions about home warranties, contact The Fairfield Team. We can help direct you towards the best options for protecting your home.