While home warranties can be an additional level of protection for your home, some homeowners may have chosen not to purchase one and others may not even know what one is. If you’re wondering how a home warranty could help protect your home, here are five misconceptions and myths debunked.
The more you know about the home systems and appliances in your home that may be covered by a home warranty, the more you may likely appreciate the value. Home warranties usually cover big-ticket items, like your furnace, air conditioner, plumbing, electrical systems and appliances — some of the essential things you use on a daily basis. A home warranty may help cover the repair or replacement of covered items that break down due to normal wear and tear.
Have you ever thought about how much it would cost if you were to replace a major home system? According to HomeAdvisor, the average cost of replacing a furnace may range from $2,298 to $5,550. Generally, a basic home warranty may cost you between $350 to $500 a year, says Realtor.com.
Unfortunately, new items may break down, too. Without a warranty, you may be leaving yourself open to a potentially expensive repair on a new appliance.
Breakdowns can happen unexpectedly, even to the most attentive homeowners. Routine maintenance can be a great thing and certainly helps, but it is no guarantee that things may not go wrong.
This is a common misconception. Homeowners insurance and a home warranty are two separate things and offer different coverage. Homeowners insurance may cover things that happen due to an unexpected event, such as a fire or theft. But a home warranty is a service contract that provides for the repair or replacement of covered items when they break down due to normal wear and tear — things that can happen to just about any homeowner at some point.
Make sure to weigh all of the facts, and then decide if a home warranty may be right for you and your home.