If you have a home or are thinking about purchasing a home, homeowner insurance is something you have researched and planned to purchase. And you may also be considering a home warranty and wondering if it will be a smart investment. Before you make that decision, it's important to understand how a home warranty differs from homeowner insurance and the benefits it provides.
Homeowner insurance is a policy to protect your home against damage from fires, tornados, or other natural disasters and theft. Many times, it is required when purchasing or leasing a home. A home warranty is a plan that protects you if a system or appliance breaks down within your home and covers items that your homeowner insurance may not cover. For instance, a home warranty would cover furnace or HVAC repairs, plumbing or electrical repairs, and in some cases, policies can cover appliances such as washer and dryers, dishwashers, and refrigerators.
It's a common misconception that you have to purchase a home warranty when you purchase your home. A home warranty can be purchased at any time, so if you are considering purchasing one, here are some things to consider:
- Unexpected Expenses: A home warranty can serve as a budget protection against unexpected expense of an appliance or system breaking down. These repairs or replacements may be expensive and a home warranty can help you manage those costs.
- Time Saver: Dealing with home repairs can be extremely time-consuming, whether you choose the DIY route or if you call a maintenance professional. A home warrant can help you find verified professionals to do the repairs, or if you do it yourself, help you source the parts you need.
- Added Value: A home warranty can add value to a home. It provides a buyer with assurance that if a system or appliance breaks down, there is a policy in place to help with the repairs. This can be extremely helpful if you don't know the age of the home's appliances and systems.
Remember to review the details of the home warranty policy you are considering. You want to make sure it is the best policy for your budget and home. As with insurance policies, it is best to compare policies before making your final decision. If you're considering on purchasing a home warranty, be sure to review the details of policy to ensure it is the best policy for your situation. You can compare various policies to make sure that you choose the best one to suit your needs.
