3 Ways a Home Warranty Protects You

Written By Mary Beth Eastman
Last updated February 2, 2021

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March 9, 2018

Simple. Thrifty. Living.

When you first move into a new home, you are required to purchase homeowners insurance. You will probably also receive advice from family and friends, as well as solicitations in the mail, regarding a home warranty. Although you are not required to get a home warranty, it is beneficial to do so.

Home insurance covers damages to the structure of the home caused by severe weather or natural disasters. It also provides coverage for personal belongings in the home. And lastly, if a family member or a visitor to the home suffers an accident, homeowners insurance also provides liability protection.

The best home warranty companies cover damaged or faulty appliances, air conditioners, heaters, electrical systems and plumbing. You can customize your home warranty plan to suit your needs and your budget, such as to only cover appliances. The home warranty covers the cost of repairs and/or replacement so long as specific terms and conditions are met. Subsequently, there are many ways a home warranty can protect you, making it a wise investment.

Even with new construction, there can be many things in a home that break down or cease to work properly over time. From shorts in the electrical system to a malfunctioning air conditioner to a doorbell that stops working, it can sometimes seem that there is no end to things that must be maintained and repaired. Thankfully, with a home warranty you won’t be liable for many of the costs.

1. Appliances

Major appliances such as washing machines, ovens, dishwashers and refrigerators get a lot of use, and parts may break or malfunction over time. Having these items in good working order is important, and a home warranty will cover the repairs or even replace the item if necessary.

2. Heating and Air Conditioning

Your HVAC units are also prone to break down or stop working properly over time, and repairs or replacements can get really expensive. But once again, a home warranty covers the costs, saving you a lot of money and stress.

3. Electrical Systems and Plumbing

The last thing you want to worry about is whether or not your electrical system or plumbing is working properly. If you are experiencing electrical problems, your home warranty will send a technician to diagnose the issue and make any necessary repairs. For example, HomeServe USA offers electrical coverage for both interior and exterior electrical needs

Most home warranty plans require you to pay a small fee for any initial service call. Be sure to read the terms and conditions of any warranty plan before deciding upon one so that there are no surprises if coverage is denied for some reason. Decide what plan is right for you with our TotalProtect Home Warranty review and Choice Home Warranty review.

About the Author

Mary Beth Eastman

Mary Beth Eastman serves as the content manager for Simple. Thrifty. Living, where she is dedicated to helping readers use money and credit wisely. Mary Beth believes that access to the right financial information paired with a growth mindset are essential tools for getting out of debt and building wealth. Mary Beth has a degree in Journalism from Bowling Green State University and has focused her 20-year journalism career on putting readers front and center, carefully considering their concerns and presenting information that will help them in their everyday lives. She has won numerous statewide journalism awards. Her writing on personal finance as been featured on numerous websites in addition to Simple. Thrifty. Living, including Huffington Post and Lexington Law blog. Mary Beth resides in Pittsburgh, Pa., with her family and two rescue dogs.

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