The HTRC

The Homeowners & Trades Resource Center

Brought to you by:

You are here: Home / Insurance / Home Warranties: What is it, and is it Right for You?

Home Warranties: What is it, and is it Right for You?

home-warrantyThis week we have an interesting guest post from Mike Thomas who is a private contractor for HomeWarrantyDeals.com. He states he enjoys DIY projects, college football and is also “deeply passionate about restoring antique homes.” With no further ado…

When I mention my past contracting work with home warranty companies in conversation, I often get a lot of raised eyebrows and puzzled looks. Many have never heard of home warranties, and those that have frequently misunderstand their function and purpose.

Most frequently, home warranties get confused with home (or homeowner’s) insurance. The mix-up is understandable, but in reality these two products are really quite different, though they do complement each other well.

  • Home insurance, as most people know, protects the owner of a structure from most causes of unexpected damage. If a home or other structure is well-insured, then the insurance policy will cover most or all of the cost for repairs or replacements in the event of a disaster. This could include storm damage, fire, or even theft.
  • A home warranty is more like an insurance policy for the machines and systems in a home that people rely on every day. This includes appliances such as a refrigerator or clothes dryer, and installed systems ranging from plumbing to pool filters. These are all essential parts of a home with complex designs and lots of parts that see plenty of use. It’s inevitable that over time they’ll wear down, needing maintenance or even replacement. A home warranty covers most of the cost of those repairs, maintenance calls, and new appliances or systems. If you like, you can consider it an independent extension of any manufacturer’s warranties you’d normally get.

Hail damage or a kitchen fire can quickly throw your life out of whack. However, a malfunctioning electrical system or broken toilet can be nearly as disruptive in their own way. Together, a home insurance policy and home warranty can provide protection against almost any disaster imaginable, large or small. This can provide great peace of mind and comfort to people knowing that they have help available for any emergency.

Like most forms of warranties and insurance, however, a home warranty isn’t necessarily a great buy for everyone. Here are a few things I always consider before recommending a home warranty to anyone:

washing-machine-hosesThe personal handiness level of the household: If you have enough maintenance-oriented people in your household or friends circle, your need for a home warranty is reduced. For instance, I feel comfortable in my ability to handle most appliance or plumbing breakdowns and maintenance myself, and I know some people I can count on if I have electric problems, so my personal need for a home warranty is low. If your expertise lies elsewhere, then a home warranty can be a good way to supplement your lack of handiness.

The age of your home and appliances: If you’re moving in to a new home (less than five years), then the risk of your HVAC system or plumbing failing is pretty low. New appliances are also typically reliable, and are often covered by a manufacturer’s warranty besides. On the other hand, the need for maintenance and risk of breakdown increase with age, so older homes and machines have more of a need of coverage.

who-left-the-fountain-onClimate stress: Structures located in geographies with extreme climates tend to be at more risk for damage and wear and tear. Extreme heat, for example, puts a lot of strain on your air conditioner. Extreme cold can damage your pipes. Extreme humidity threatens electronics. Homeowners in these areas of extremes will usually get more utility out of a home warranty.
.

flex-not-required-dryerPreexisting problems: Most home warranties to not cover preexisting problems with your systems and appliances. Getting coverage for a broken unit is usually not an efficient use of money.

.

.

Your lifestyle and livelihood: Some peoples’ lives really simply cannot tolerate a failure of a vital home appliance or system or any long period of time. Perhaps it’s someone who makes a career out of baking out of their kitchen and needs their oven available all day, every day. Or a busy parent who doesn’t have time to work on keeping up on everyday maintenance. Or someone who depends on an electronic medical device that needs a constant and reliable source of power. If your life would be turned completely upside-down by losing an appliance or system for a few days, consider a home warranty for a quick, reassuring solution to most potential problems.

Home warranties can seem confusing at first, but a second look makes their potential value quickly apparent. A little research can help you determine whether they’re a good investment to consider. To learn more, consider contacting a home warranty company yourself and finding out what kind of service and pricing they can offer you.

I would like to once again thank Michael for taking the time to write this. I got to say when I was first approached about him writing about what is  a “Home Warranty” I was pretty skeptical & figured, it would be another sales / SEO pitch. Well as the saying goes, never say never & I was glad I gave him a chance.

Just for the record, I do not have a policy through them (or anyone else currently),but having dealt with a similar type of company back in Arizona – I would highly recommend you do your research. Just like there are good & bad “insurance” companies, the same applies to “warranty” companies and what work they do cover (walls, finishes, etc…)

Related posts:

FAQ: What is a Construction Lawyer (and Why Should You Call One)?
Finding The Perfect Home for You, Your Family, and Your Pets
What to do about damage to your house during a storm
Safety Sunday: Asbestos & DIY Projects
Going Green - While Cleaning Part Deux
Remodeling Right: A Hedge Against Changing Technology
Review your Policy now; before you need to file a claim
Building and Remodeling is it a Commodity?
  •  Tweet
  •  
  •  
  •  
  •  
  •  

Filed Under: Insurance Tagged With: Guest Article's July 23, 2013 By SLS 1 Comment

Featured Posts

Getting ready for Spring: Your deck & grill

Hopefully, this last snow storm was it for spring (really?) meaning most of us can start getting ready to grill and get back to enjoying the great outdoors. Needless to say for ...

Read More

March – Early Spring Maintenance Checklist

March and the start of spring, is a great time, as it seems to bring out a new life in everything. The trees start to bloom, the animals that were ...

Read More

Preventing or fixing frozen water pipes

Updated: This article was originally posted in early 2010 after the Alabama Department of Health issued the following warning via press release: Prolonged period of cold weather ahead prompts warnings to ...

Read More

BS4D: Saving on Heating Related Energy Costs

For the bulk of the year, energy costs are not a big concern to many and instead most calls relate to comfort, safety or health issues. We are now starting ...

Read More

Common Sense Building: Build Radon Out

Common Sense Building: Build Radon Out

As many of you probably already know, January is National Radon Month. Just like CO, it is an odorless & tasteless gas; however, unlike CO there are no warning signs ...

Read More

FAQ: Ceiling fan direction - summer & winter

One of the biggest questions out there is which direction should my fan be running and how can I tell. You look at the switch and realize it isn't any ...

Read More

FAQ on Duct Cleaning: All Hype or Worthy Expense?

It must be spring time... I got the following in the mail just the other day: 5 different ads all for duct cleaning. With allergy season starting along with my ...

Read More

Random Glossary term

  • Capillary Break

    This week we have an interesting guest post from Mike Thomas who is a private contractor for HomeWarrantyDeals.com. He states he enjoys DIY projects, college football and is also “deeply passionate about restoring antique homes.” With no further ado… When I mention my past contracting work with home warranty companies in conversation, I often get a […]

The HTRC - Copyright © 2006–2021 by TheHTRC.com & SLS Construction & Building Solutions LLC http://SLS-Construction.com