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    All Questions About Home Warranties Answered 

    Home warranties provide a peace of mind to homeowners in the event of unexpected repairs or replacements. But how much they cost can vary by provider, and there may be certain limitations in coverage. 

    Some alternative options to a home warranty are building an emergency fund and learning how to handle common maintenance tasks and repair issues. This can save homeowners on annual premiums, while preventing unnecessary expenses. 

    What is a Home Warranty? 

    Home warranties are repair and replacement insurance policies for a homeowner’s appliances, systems and other items in the home. If something goes wrong, the homeowner calls the warranty company, and a technician visits the home to take a look. If the issue is covered, the home warranty company pays for the repairs. 

    However, homeowners who are diligent about a maintenance schedule may not need home warranties or might be able to get their repair costs covered by credit card companies instead. Moreover, if you buy a new home, it’s likely that the manufacturer warranties and builder warranties for most appliances will still be in effect, so a home warranty wouldn’t pay for anything else. 

    Nevertheless, home warranties are an option for many people. They can be especially helpful for first-time buyers who have little information about how well a house was maintained or whether all the appliances and systems were new when they purchased the property. 

    What Are the Benefits of a Home Warranty? 

    A home warranty is a useful tool for first-time homeowners. Buying a warranty can help cover unexpected expenses that might not be in the budget and ease the transition from renter to homeowner. Additionally, some home warranties include access to handyman services that can be helpful when it comes to repairing and maintaining appliances. 

    However, a home warranty isn’t a replacement for homeowners insurance. While a home warranty can cover damage from normal wear and tear, homeowners insurance protects against things like natural disasters, theft and vandalism. 

    If you’re thinking about getting a home warranty, it’s important to compare providers’ coverage options, limitations and premiums. It’s also a good idea to speak with a representative to learn more about the service and to ensure that the plan you choose aligns with your needs. 

    How Do I Know if I Need a Home Warranty? 

    A home warranty may not make sense for everyone, depending on how you use your money. If you have a well-planned budget that effectively balances your living

    expenses with your financial goals, a home warranty might not provide value. But for many people, a home warranty can help them avoid expensive surprises when it comes to maintaining and repairing household appliances and systems. 

    It can be particularly beneficial if you live in an older house with appliances and systems that are out of their original warranties or otherwise prone to failure. Some home warranty companies offer a comprehensive plan that covers most systems and appliances in a home, but others are more focused on specific areas of the house. 

    Before purchasing a home warranty, request custom quotes from several providers to compare coverage inclusions and costs. Some companies charge a service fee each time an item is covered by the policy, and this can quickly add up over time. 

    How Much Will a Home Warranty Cost? 

    Home appliance repair insurance varies. The type of plan, number of claims and add-on coverage can affect the cost. Annual costs generally range from $450 to $600, with more comprehensive plans costing more. 

    A homebuilder may include a warranty policy as part of the purchase price for new construction or extensive remodels. The warranty typically covers up to 10 years of structural issues, including flooring, walls, framing and roofs. 

    For repairs and maintenance, a home warranty could be worth the investment. Before deciding, get quotes from multiple providers and make sure you understand the coverage included in each plan. This will help you determine the best value. A warranty company will send a serviceperson to your house for most repair requests, which can save you the hassle of finding and hiring a contractor or repair specialist.