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What to Know About Buying Home Warranty Service Plans

What to Know About Buying Home Warranty Service Plans

March 10, 2018

Homeowners often shy away from home warranty service plans due to a lack of knowledge. They wonder if the plans are expensive, if the needed repairs are covered, and if the service plan is really worth the money. You’ll find the answers to these common questions here.

Many homeowners believe their home insurance policies cover anything that has to do with their homes, including the cost to fix a cracked toilet tank or broken air conditioner. Unfortunately, when they call the insurance company to ask about coverage, they are discouraged to find out the repairs are not covered. The difference is that homeowners insurance policies only cover the structure of your home and your personal property/belongings in the event of loss caused by a catastrophic event, whereas home warranty service plans cover repairs to your home’s heating & cooling, plumbing, and electrical systems caused by normal use.

Home Service Plan Coverage

Since the cost to repair the items in your home can vary greatly, buying a home warranty plan can be a lifesaver. A one-time bill to repair your air conditioner can cost hundreds of dollars, but the cost of a home service plan is paid in monthly installments and avoids those large unexpected bills. A home service plan will have a deductible for each claim filed, and many plans will have repair limits for the items in your home. It’s beneficial to remember that agreeing to a high deductible can result in lower annual costs, similar to your homeowners insurance plan.

Do You Need Home Repair Insurance?

When deciding on whether or not you need a home warranty service plan, it’s helpful to take a quick inventory of your home’s systems and catalog the age of each item. Make sure to include the basics such as the water heater, air conditioner, and furnace. And if your home is newer, review the expiration dates for your manufacturer’s warranties on these items. If the warranty expires soon, home repair insurance can give you peace of mind and protection from the high costs of future repairs.

You also need to consider the age of the interior and exterior electrical lines, interior plumbing, and exterior sewer lines in your home. If you have an older home, the chance of encountering a large repair with one of these can be very high. Remember that home warranty service plans can also cover repairs to blocked or leaky exterior pipes caused by extreme temperatures or settling and shifting in the ground. No homeowner wants to go through the stress that comes with searching for a service provider or worrying about the cost when it comes to a massive, emergency repair like these.

As any homeowner can tell you, the cost to maintain a home is expensive. It’s also a full time job, and it never fails that as you check one item off your to do list, three additional items appear. Homeowners who end up with a large bill to repair their furnace or air conditioner will see the benefit of the home service plan when it’s too late. Make sure you are covered now with an affordable repair plan from Home Serve that you can customize to fit your needs and your budget.


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