Sponsored content: What You Need to Know in Getting a Home Warranty

What You Need to Know in Getting a Home Warranty

Home warranties are more beneficial for you than you think. Let’s say you are a recent homebuyer. You and your family have moved into your newly purchased home, and everybody is excited. A week later, however, you noticed that the electrical or the air conditioning systems are not working the way they are supposed to.

These are major home systems that require you to spend a dime to be repaired or replaced. It’s a very stressful scenario, especially when you’ve just spent a pretty big amount on buying that home. When things like these happen, purchasing a home warranty can save you from all the possible financial problems you might encounter when repairing or replacing.

Getting one is very advisable. On the other hand, it is still best to get familiar with what it is, how it works, and what makes them better than purchasing a home without it. Below are some of the things you should know when getting a home warranty.

What is it?

You probably might have some idea by now. In its simplest sense, a home warranty is a paid service contract between you, the homebuyer, and a home warranty service company that covers possible expenses on home system repairs and replacements. It can also cover major home appliances such as refrigerators, washers and dryers, dishwashers, and the likes.

It should be clear that this is different from home insurance. Insurance protects your home and possessions from loss or major damages due to incidents like fire, natural disasters, or property crimes such as theft. However, they don’t usually include the components covered by a home warranty, or the deductibles in their policy wouldn’t meet the overall costs.

Home warranties provide you with a range of options for plans, service fees, and if you want, you can add extra coverage, but this could mean additional fees, too. You can pay them up-front for the entire duration (usually for one year), or if they offer payment plans, you can set up your payments by month.

Of course, not all home warranty companies have policies that are designed to give you benefit. If you don’t choose wisely, you might end up having problems such as a denied claim of an improperly maintained item by the previous residents. Therefore, it is important that you only choose legitimate companies.

To learn more about how to get a good home warranty, you can check out this website https://www.crediful.com/home-warranty/choice-home-warranty/.

How does it work?

As said, home warranty plans contain different options that are included in their service coverage. However, the processes undertaken are fairly similar. They usually work this way.

When an appliance or a home system breaks or not operating properly:

Step 1: The homeowner will file a claim and make a call to their warranty company.

Step 2: Usually, a home warranty personnel will verify the claim, and if it is qualified, they will call a home service provider. Sometimes, the homeowner may contact the provider, but this depends on the company’s policies.

Step 3: The provider will then contact the homeowner to make arrangements.

Step 4: After making the arrangements, the provider will go to your home, inspect, and fix the problem. Depending on the coverage, they can either repair the damage, or if it’s irreparable, they may also replace them.

Step 5: The homeowner pays for a small service fee, while the warranty company will pay the remaining balance for the repair, replacement, and installation.

Important note: We are still in a global pandemic crisis. If you are expecting a service provider, it’s best that you take necessary precautions and preventive actions to stay safe and protect the providers and your family from threats of COVID-19.

How much will they cost?

The average cost you might spend for a home warranty will likely range from around 300$ to 600$ a year. If you purchase extended coverage, the total cost will have an additional of at least 100$ to 500$ at most. They are usually paid in advance, and you can renew the policy once it expires.

Generally, the amount will depend on the type and the number of items included in the coverage, the type of your property, and whether you apply for a basic or extended plan. Sometimes, companies may offer special promos like putting a discount on the policies or adding extra coverage for the same or smaller price.

Who pays for it?

Normally, anyone can purchase a home warranty, whether they are home buyers, home sellers, or even renters. Interestingly, though, a home warranty for a seller serves a different purpose than that of the buyer’s warranty.

For a seller, having a home warranty can give them some financial protection plan if something goes wrong with the major appliances or systems while the home is still in the market. At the same time, having one can increase their chances to close a deal immediately because a home warranty attracts more potential buyers.

On the other hand, a buyer can purchase a home warranty during a real estate transaction with an agent or from a home warranty company directly. Compared to a seller’s warranty which is usually limited to major items and does not typically include minor ones, a buyer’s warranty may cover both.

Will it be worth it?

Unless you are willing to go through the hassle of paying hundreds to thousands of dollars, home warranties are definitely worth your money. Besides, unexpected home accidents do happen, and your financial pocket might be unprepared. If you have a home warranty, you don’t have to worry about getting caught up with major repair/ replacement expenses.


Getting your home warranted is a very smart and wise move for every homeowner out there. Sure, you may spend a couple of dollars, but the services and benefits they offer let you save thousands and even more.