Buying a home comes with many decisions, and one term that often pops up is “home warranty.” You’ve probably wondered: Do I really need one? And if yes, what are the typical home warranty prices?
Here’s the thing – home warranties can be a lifesaver, covering unexpected breakdowns in your home’s systems and appliances. Picture this: Your heating system fails in the middle of winter, or your fridge suddenly stops working. This is where a home warranty can make a difference.
But let’s face it: navigating the home warranty pricing and coverage options can feel overwhelming.
Whether you’re a first-time homeowner or just looking to protect your investment, understanding home warranty prices and coverage can help you stay prepared. Ready to find out how to protect your home without breaking the bank?
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What is a Home Warranty?
A home warranty is a service contract similar to an insurance policy that protects homeowners from unexpected repair costs. It provides coverage for repairing and replacing major home systems and appliances that break down due to everyday wear and tear.
While home warranties are often included in real estate transactions, they can also be purchased separately by any homeowner. Usually, such contracts have a tenure of 12 months, after which you need to renew the warranty.
For homeowners, a home warranty brings a sense of reassurance and security by reducing the financial burden of expensive repairs or replacements. It can ease the impact of sudden appliance or system failures, helping to keep repair costs more manageable.
What Can You Expect a Home Warranty to Cover?
Typically, a home warranty provides coverage for all the major home appliances and systems, depending on the type of warranty plan you buy. However, remember that it does not cover appliances with pre-existing defects or poorly maintained systems.
List of home appliances that a Home warranty provides coverage for repair or replacement:
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- HVAC system (Heating, Ventilation, and Air Conditioning)
- Refrigerator & Freezer
- Microwave Ovens
- Dish Washer
- Clothes Washer
- Oven and Cooktop
- Electrical Systems
- Ceiling Fan
- Garage Door Opener
- Pools & Hot Tubs
- Ductwork
- Garbage Disposals
- Plumbing & Sump Pumps
- Other Home Appliances
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The comprehensive coverage shields you against potential problems arising while using your home systems and appliances.
However, there may be areas not covered under the standard plan. For those appliances, you can choose additional coverage for a small extra cost, allowing you to tailor the warranty to fit your specific needs.
Key Factors That Determine Price of Home Warranty
Several factors influence the price of home warranty plans, and as a homeowner, you should be familiar with the critical factors to ensure you end up with a service contract that perfectly fits your needs.
Coverage
The price of a home warranty largely depends on the type of coverage you choose. While system-only or appliance-only plans are less expensive, combination plans typically offer better value by bundling both at a lower total cost.
Home Size
The size of the home can sometimes influence home warranty pricing. Larger homes often have more extensive mechanical systems and additional appliances, which can lead to higher repair costs and, as a result, a higher warranty price.
Service Fee Amount
The service fee you choose plays a big role in your home warranty cost. If you go with a policy with a higher fee per claim, your monthly payments will be lower, making it more budget-friendly month-to-month.
Add-ons
You can customize your home warranty by adding extra coverage for pools, spas, roof leak repair, or electronics. While these add-ons can be useful, they will increase your monthly premium. It’s all about balancing what you need with what you want to spend.
Select Home Warranty offers comprehensive coverage for your essential home appliances. Contact us at 860-288-4791 to explore our home warranty plans.
Breakdown of the Home Warranty Cost
Home warranty prices can vary depending on the service provider, coverage type, and service fee you select. Generally, you can expect the average price for home warranty to be around $60-65 a month, based on the type of plan you’ve picked.
To help you get a clearer picture of what you’re paying for, let’s break down the typical components of a home warranty plan’s cost.
Premiums
Premiums are the main cost of a home warranty, paid annually or monthly for coverage. For basic plans, monthly premiums usually range between $60 and $65, while extended options can vary to fit different needs and budgets.
Reaching out directly to the provider is the best way to get a quote that fulfills your requirements, as well as to check for any current offers or discounts on available plans.
Service Fees
In addition to premiums, there are service fees when you make a claim, usually ranging from $60 to $120 per visit. This fee goes to the technician who visits your home to assess the problem with the appliance and fix it.
Optional Add-Ons
Most home warranty companies provide add-ons for items not typically included in standard plans. This could mean coverage for things like septic systems, additional HVAC units, or a second refrigerator, allowing you to tailor your plan to your home’s unique needs.
Home warranty prices can vary widely among providers, influencing overall costs. Select Home Warranty stands out with its budget-friendly prices, offering plans that cater to various needs without burning a hole in your pocket.
Whether you need major appliances or home systems coverage, Select Home Warranty prices provide great value, where you’re not just getting a warranty; you’re investing in peace of mind, knowing that unexpected repairs are covered.
Selecting the Right Home Warranty Provider for Your Needs
It’s smart to explore different providers to find the best fit for your home and finances. But, once you’ve received multiple quotes for the coverage you want, you may be unsure about which one to choose.
In addition to comparing pricing plans, make a checklist of the following factors to ensure you enter into a contract with the right provider.
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- Expected Repairs: Does the plan cover any repairs you anticipate needing during its term?
- Coverage Limits: What is the maximum amount the plan will pay for repairs on each type of item?
- Coverage Exclusions: Are specific repairs excluded from the service agreement?
- Waiting Period: How long must you wait before your coverage begins?
Customer Satisfaction: What feedback and reviews does the company receive from its customers?
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Getting answers to these questions from the providers can help you narrow down your options and find the perfect home warranty company for your needs.
Having the right coverage and provider makes all the difference in keeping your home safe and running smoothly. It can also increase your home’s value, giving you a competitive edge when it comes to selling your property in the future. At Select Home Warranty, we’re here to meet all your home warranty needs while you remain stress-free, knowing your home is covered.
Let’s get started today – your home deserves it!
