Household appliances and systems have become an integral part of the modern lifestyle. But regardless of how carefully one uses them, regular use over an extended period of time can cause wear and tear. This can, in turn, lead to huge repair costs. To avoid this, many people choose to invest in home warranties that cover expenses and replacements in some cases. Here are some benefits of having a home warranty and policies one can consider.

What is a home warranty?
A home warranty is different from home insurance. The latter covers the house against unforeseen circumstances like fire, theft, or damage due to other natural calamities. On the other hand, a home warranty focuses on home appliances like dishwashers, cooktops, ovens, refrigerators, washers, and systems, including heaters, ductwork, air conditioning, plumbing, and electrical systems. Any unexpected breakdowns in the system or faulty functioning can be covered in these policies. While both provide financial security to the policyholders, warranties help save money on more regular expenses.

How do home warranties work?
The warranties are usually renewed annually, and the terms may differ from one policy to another. Home warranties mainly provide discounts on repairs. Policyholders can contact their insurance company when they want to repair a system malfunction. First, the company sends a professional to inspect the problem, who confirms whether the issue fits into one’s purchased policy. Once approved, a technician or expert is sent to the policyholder’s house to carry out the repairs or replacement. At times, the repair expenses may be more than the insured amount. In this case, the individual has to shell out the additional costs from their own pockets. One can opt out of a company’s home warranty plan after a year or the end of the premium payment and switch to better options.

Benefits of a home warranty
Financial support and peace of mind
The policy gives discounted repairs and ensures that the policyholders do not have to pay the entire cost. Knowing that the repairs will be taken care of by a professional can also bring peace of mind to homeowners, especially those who do not have the time, expertise, or resources to handle them.

Budgeting
The chance of a homeowner facing unexpected costs is less if one has a home warranty. Usually, policyholders know the deductibles, service fees, and other costs associated with repairs upfront, making it easier to manage their other finances and budget monthly expenses.

Flexibility
The companies allow homeowners to customize their policies as per their needs. If one wants to cover only the appliances, one can customize the policy accordingly. One also doesn’t need to be the owner of the house to insure their self-owned appliances. Similarly, one can also choose comprehensive packages for added protection.

Convenience
Homeowners do not need to go through the hassle of finding a trusted professional to fix their products, making this a more convenient, time- and money-saving option.

Having said that, there are certain limitations to this. For example, some home warranties may not cover the roof, flooring, wall paint, foundation, and other structural aspects of one’s home. Additionally, the warranties may come with a service fee, from $50 up to $125 or more, wherein one has to pay for the inspection visits.

Home warranties plans and companies to consider
American Home Shield
The company offers varied plans with a wide network of certified contractors and technicians. Currently, it covers 23 major home appliances and systems. One can opt for a combination warranty or individual appliances or systems. As additional benefits, the company also gives one an option to insure leaky roofs and garage refrigerators. American Home Shield’s plans start at nearly $70. The company doesn’t require the homeowners to show previous maintenance records to get one’s appliances covered. Unlike many companies, American Home Shield also insures and repairs or replaces poorly maintained appliances or systems. Besides that, the company provides 30 days of workmanship guarantee.

Choice Home Warranty
The company, with its wide reach almost across the country, provides two warranty options for homebuyers and sellers. The company responds within four hours of raising a repair request. It also has tied up with over 25,000 contractors to meet the rising demands. Because of its widespread network, homeowners may not have the liberty to choose their preferred contractor. Choice Home’s average workmanship guarantee is 60 to 90 days for parts. However, its service may cost $85 for a flat fee.

Liberty Home Guard
Liberty Home Guard provides home warranty plans starting from $58.33 monthly or $699.99 annually. Apart from their three basic policies, including only appliances, systems, and combination plans, Liberty Home Guard also provides a warranty against roof leaks and pest and termite control.

Home Warranty of America
Another known company, Home Warranty of America, provides cover for one’s home products and a money-back guarantee on their repair services of up to 30 days. Their warranty plans have a basic structure and include a combination of appliances and systems. Their premium plan, on the other hand, which costs about $59.92 monthly, insures air conditioner units as well. One can also opt for their add-on services of pools if necessary. However, it’s best to confirm the cost of one’s premium with the company’s local office since they may vary depending on one’s state and type of home.