Home warranty

Home Warranty: What is it, How it Works, and Should You Get One?

As a homeowner, you know how important it is to protect your investment. Homeownership comes with all kinds of expenses, from mortgage payments to property taxes and maintenance costs. One way to protect yourself financially is to invest in a home warranty. In this blog post, we’ll cover everything you need to know about home warranties, including what they are, how they work, and whether or not you should get one.

What is a Home Warranty?

A home warranty is a service contract that provides coverage for major appliances and systems in your home. Unlike homeowners insurance, which covers damage caused by natural disasters and accidents, a home warranty covers the cost of repairing or replacing appliances and systems when they break down due to normal wear and tear.

Home warranties typically cover appliances like refrigerators, ovens, and washing machines, as well as systems like heating, ventilation, air conditioning (HVAC), plumbing, and electrical. A home warranty may also cover items like pool equipment and garage door openers, depending on the policy.

What’s Covered in a Home Warranty?

Each home warranty policy differs slightly in terms of what it covers. However, some appliances and systems that are typically covered include:

  • HVAC systems (heating and cooling)
  • Plumbing systems
  • Electrical systems
  • Water heaters
  • Dishwashers
  • Ovens and ranges
  • Trash compactors
  • Garbage disposals
  • Refrigerators
  • Washing machines and dryers

While home warranties cover most major appliances and systems, there are some exclusions and limitations to be aware of. For example, a home warranty may not cover pre-existing conditions, cosmetic issues, or improperly installed items. It’s important to read the details of your home warranty policy carefully so that you understand what is covered and what is not.

How Does a Home Warranty Work?

When you purchase a home warranty, you’ll typically pay an annual fee ranging from $600 to $1,000 or more, depending on the level of coverage you choose, home size, and add-on options. There is also a service call fee of around $75 to $125 each time you need a repair or replacement. The warranty company has its own vendors, so don’t call a repair person and expect the company to pay that.

If one of your covered appliances or systems breaks down, you can contact your home warranty company to file a claim. They will send a licensed technician to your home to assess the problem and determine if it is covered under your policy. If it is, the technician will repair or replace the item at no additional cost to you (other than the service call fee).

Pros and Cons of Having a Home Warranty

Like any type of insurance or service contract, there are pros and cons to having a home warranty. Here are some benefits of having a home warranty:

  • Peace of mind: When you have a home warranty, you know that your appliances and systems are covered in case of a breakdown.
  • Financial protection: Repairing or replacing major appliances and systems can be expensive. With a home warranty, you’re protected financially from these unexpected costs.
  • Convenience: When you have a home warranty, you don’t have to spend time searching for a reputable technician or paying out of pocket for repairs.

On the other hand, there are some potential drawbacks to having a home warranty:

  • Cost: Home warranties can be expensive, especially if you choose a policy with comprehensive coverage.
  • Limited coverage: Home warranties may not cover all of the items you want to be covered, and the policy may have exclusions and limitations.
  • Service delays: Depending on the home warranty company, there may be delays in getting a technician to your home to make repairs.

Choosing the Right Home Warranty for You

Choosing the right policy is important if you decide that a home warranty is right for you. Here are some factors to consider when selecting a home warranty:

  • Level of coverage: Consider the appliances and systems that are most important to you and choose a policy that provides comprehensive coverage for those items.
  • Cost: Look at the annual fee, service call fee, and any other costs associated with the policy to ensure that it fits within your budget.
  • Reputation: Research the home warranty company and read reviews from other homeowners to ensure that they are reputable and provide quality service.
First American Home Warranty

There are many home warranty companies to choose from, including First American Home Warranty, American Home Shield, and Old Republic. McGraw Realtors has a preferred home warranty company — First American Home Warranty. Comparing policies and prices from multiple companies can help you find the best option for your needs and budget.

Tips for Making the Most of Your Home Warranty

If you do decide to invest in a home warranty, there are some tips to help you make the most of it:

  • Keep up with regular maintenance: Regular maintenance and upkeep of your appliances and systems can help prevent breakdowns and ensure that they last longer.
  • Read the policy carefully: Make sure you understand what is covered and what is not so that you don’t end up paying out of pocket for repairs that are not covered.
  • Choose a reputable home warranty company: When selecting a home warranty company, it’s important to choose one that is reliable and trustworthy. Look for a company with a proven track record of providing quality service, and read reviews from other homeowners to get an idea of their experiences with the company.
  • Make timely claims: If you do experience a breakdown in one of your covered appliances or systems, make a claim as soon as possible to avoid further damage or complications.
  • Understand your policy: Take the time to read through your home warranty policy carefully so that you understand what is covered and what is not. This will help you make informed decisions when it comes to repairs and replacements.
  • Keep records: Keep a record of all repairs and replacements made under your home warranty. This will come in handy if you ever need to file a future claim or sell your home.

Investing in a home warranty can provide homeowners peace of mind and financial protection. While there are pros and cons to having a home warranty, being informed and selecting the right policy can make all the difference. By understanding what is covered, how the process works, and taking steps to make the most of your home warranty, you can protect your investment and enjoy your home with confidence.

If you are considering investing in a home warranty, OKCHomeSellers at McGraw Realtors can help. Our preferred home warranty company, First American Home Warranty, offers comprehensive coverage at an affordable price. Our team can provide guidance and advice to help you find the right policy for your needs and budget. We will take the time to explain the process and assist you in selecting a policy that’s tailored to your specific needs. Give us a call or contact us online for more information about our home warranty services!