Frequently Asked Questions
1. What is a home warranty?
A home warranty is a service contract for residential buildings that covers the cost of household appliances and systems. Items that suffer normal wear and tear will either be repaired or replaced. A home warranty plan ensures homeowners feel secure knowing that they will escape unexpected home repair costs. The fees are often quite limited.
2. Are home warranties worth it?
In the long run, home warranty plans are well worth it. Forego costly repairs by simply paying around $29 per month. If your budget is limited, a home warranty plan is especially beneficial. You’ll also have peace of mind knowing your major (and expensive) home appliances and systems are covered.
Lastly, your home warranty provider will supply you with a network of professionals. Say goodbye to the days of scouring the internet for plumber reviews.
3. Should I get a home warranty plan?
If you like the sound of avoiding expensive home repairs and replacement costs, you’ll want to invest in a home warranty plan. We recommend a home warranty plan for everyone- including realtors, sellers, rental property owners and first-time home buyers. There are only two scenarios in which you can forego a plan: if you’re purchasing a new home that is protected under a builder’s warranty, or if you own a home larger than 5,000 square feet.
4. How much is a one-year home warranty?
Like anything else, home warranty plans range in price, but most cost between $25 and $67 per month. A plan under $50 a month is regarded as an affordable home warranty. The cheapest home warranty plans tend to be the build-your-own and custom coverage plans. Recently, customers have been complaining about the annual home warranty rate increase. Unfortunately, it is seemingly unavoidable as the demand for home warranties increases. To side-step this price jump, we recommend asking to lock in your price upon signing. Some providers may only guarantee your rate if you pay for 3-5 years upfront. Although, for most people, this is a lot of money at once, you can cancel at any point and receive a full refund. Be sure to ask about cancellation policies and fees- some range from $50-$75.
5. Who pays for a home warranty?
Anyone can buy a home warranty plan and benefit from home protection. Home buyers and sellers, realtors and rental property owners are the most common customers, however. If a home buyer pays for a home warranty plan after closing on the house, they are responsible for the cost. On the other hand, we’re seeing a rise in the number of sellers paying for 1-year plans. Realtors offer buyers a home warranty plan as a way to say “thank you”, and real estate agents usually buy plans to cover potential repairs while the home is on the market.
