Although homeowners would love to avoid problems, the inevitable will eventually happen. Purchasing a home is an exciting prospect but causes anxiety for some buyers because they worry about something going wrong. Thankfully, there are home warranties. A home warranty will not prevent problems from developing with the major components of a home, but it can eliminate some of the sting. 

What Are Home Warranties and What Do They Cover?

A home warranty is somewhat like an insurance policy. Home warranties cover the cost of service, repair, and replacement of specific components of a home. These policies cover standard appliances, electrical systems, HVAC systems, and plumbing systems. Those concerned about the cost of your homeowners warranty should continue reading to learn more. 

What Will a Home Warranty Not Cover?

Home warranties typically cover unexpected failures caused by wear and tear or defects. There are some things a home warranty will not cover. Exploring the information below will help homeowners avoid unexpected surprises when purchasing this type of coverage. 

• Failure to seek maintenance
• Cosmetic concerns
• Pre-existing issues
• Repairs over the coverage limits
• Improper installations
• Appliance abuse or misuse

Before purchasing a home warranty, homeowners need to ensure they understand the exclusions in coverage. Reading the fine print and asking for clarification about the warranty will help homeowners choose pragmatically. 

What Are the Factors That Determine the Cost of Coverage?

The cost of a home warranty varies but is dependent on the following. Homeowners should research their options and learn as much as possible before purchasing a warranty for their homes. 

• The cost will depend on the plan a homeowner chooses. There are no cookie-cutter approaches to this type of coverage. Homeowners have access to a range of options ranging from low to high end coverages. 
• Homeowners will also affect the cost of their warranty by the add-ons. The cost of add-ons varies according to the type. Homeowners can expect to pay anywhere from $2 to $35 for each add-on. Some more popular add-ons include an extra refrigerator in the garage or a well pump. 
• The company a homeowner chooses also factors into the cost. Home warranties are part of a competitive industry niche. With companies competing for their business, consumers benefit from competitive prices. 

How to Choose a Home Warranty

Home warranties typically offer one year of coverage, but holders have the option to extend their coverage after the first year. Homeowners can either pay upfront or by the month. 

Taking time to research the different companies and policy options is essential for homeowners. With careful research, it will be easier to select the correct policy for their needs. Consider the following. 

• Check to ensure the company has a good rating and offers fair coverage and prices. 
• Ensure the policy covers necessary aspects of the home. Ask about add-ons. 
• Homeowners need to ensure there are no surprise exclusions. 
• Price is always a consideration but should not be the top reason for purchasing a particular home warranty. 
• Homeowners also need to ensure they learn about the home warranty company’s contractors before purchasing. 

Find the Proper Home Warranty Today

Purchasing a new home brings on a wealth of stress for some. Homeowners will have greater peace of mind knowing their home’s main components are covered should problems arise. 

A home warranty is a sound investment for your home. A warranty will cover the service, repair, and replacement of the major components of your new home.