The Benefits Of A Home Warranty

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Home warranties provide homeowners with an easy way to avoid paying repair costs out of pocket, but when selecting their provider they should do so with caution and carefully read through any contracts with terms, conditions and clauses clearly laid out in them.

Make sure that you consider a plan that covers surface or cosmetic issues, such as scratches or dent on appliances and one that will fit your needs. Many companies offer these services at a small service fee. You can see an example in New Jersey here:

Peace of Mind

Home warranties provide peace of mind to buyers when purchasing property and when doing DIY work like roofing. A warranty provides financial security if a major system or appliance breaks, eliminating the stress associated with finding and financing contractors to repair or replace it.

Consumers comparing home warranty companies should carefully investigate each provider’s reputation and track record before selecting one. Consumers can check with both the Better Business Bureau and state insurance regulators for complaints or actions taken against any provider they are considering.

Consumers should carefully consider their options when it comes to home warranties that allow them to choose their contractors or only work with pre approved service providers. Some warranties limit buyers’ choices, which could prove especially problematic for older properties that need more specialized repairs or replacement work.


Home warranties help homeowners protect themselves against unexpected expenses that can strain budgets and drain emergency funds. Instead of spending days trying to locate someone to repair a broken appliance or system, they simply call their provider and arrange an appointment with a service contractor.

Providers typically offer system plans or packages that cover systems and appliances in the home as well as add-ons like pools and spas. Homeowners who need specific systems or appliances covered may want to upgrade their policy.

Many home warranty companies feature customer testimonials and reviews on their websites, yet it is wise to read all of the fine print carefully and consult your state regulator or Better Business Bureau if complaints have been lodged against a specific home warranty company.

Coverage Options

Home warranties can help reduce some of the strain associated with replacing or repairing appliances and systems, but it’s essential for homeowners to thoroughly research each plan prior to making their selection and reviewing what’s covered, service fees and annual premiums.

Most providers offer plans that cover various systems and appliances. Some even provide comprehensive plans. Homeowners may add on extra protection with garage door openers, well pump coverage or septic tank protection as add-ons to increase their appliance and systems coverage limits.

At its core, home warranties can provide great peace of mind, savings and convenience if they cover costly repairs or replacements. A wise homeowner will assess their home systems and appliances’ age and condition before comparing prices from various providers before making their decision about whether it’s worth paying more to gain that peace of mind.


Home warranties are typically included as part of real estate transactions and typically provide homeowners with excellent coverage at cost-effective prices. When looking for a warranty provider, homeowners should look for an established company that guarantees transparency regarding coverage terms and service procedures.

Buyers should research which contractors are included in a home warranty provider network. Some buyers may be disappointed to learn that one company limits which contractors can work on covered appliances and systems.

At its core, the value of a home warranty depends on a new homeowner’s situation and risk tolerance. When budgeting, home warranties should be factored into budgets alongside expenses like homeowner’s insurance – providing both financial security and peace of mind to new homebuyers who may lack funds to cover unexpected repairs out of pocket. It may especially make sense for first-time homebuyers.