Do I Need a Home Warranty? Understanding the Basics and Benefits

What is a Home Warranty?

A home warranty is a service contract that covers the repair or replacement of major home systems and appliances that fail due to normal wear and tear. This can include items such as your HVAC system, plumbing, electrical systems, and major appliances like your refrigerator and dishwasher.

How Does a Home Warranty Work?

When a covered item breaks down, you contact the home warranty provider. They will then send a qualified technician to assess the issue. If the repair or replacement is covered under your plan, the cost will be covered, minus a service fee.

Benefits of a Home Warranty

• Peace of Mind: Knowing that your major home systems are covered can reduce stress.
• Financial Protection: Helps avoid large, unexpected repair bills.
• Convenience: Simplifies the process of finding qualified repair technicians.

When Might You Not Need a Home Warranty?

While a home warranty can be beneficial, it might not be necessary for everyone.

New Homes

If your home is new, it likely comes with a builder’s warranty that covers major systems and appliances for a certain period.

Handy Homeowners

If you are skilled at repairs and maintenance, you might prefer to handle issues yourself without the added cost of a warranty.

Choosing the Right Home Warranty

It’s crucial to choose a reputable company with a good track record. Research various providers and compare their coverage options, like the family home protection company, to find a plan that suits your needs.

Common Home Warranty Exclusions

1. Pre-existing Conditions: Issues that existed before the warranty start date are not covered.
2. Improper Maintenance: Items not maintained according to the manufacturer's specifications might be excluded.
3. Cosmetic Issues: Aesthetic aspects like paint or minor scratches are typically not covered.

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