Home warranties are becoming an increasingly popular choice for homeowners, as they offer a number of benefits that can be extremely valuable. In fact, the global home warranty service market was worth $7.3 billion in 2020 and is projected to reach $13.6 billion by 2030. This indicates a compound annual growth rate (CAGR) of 6.3 percent from 2021 to 2030.
A home warranty contract is between the homeowner and the home warranty company in which the provider agrees to repair or replace any appliances or systems in the home that break down due to normal wear and tear. Home warranties provide homeowners the confidence and peace of mind that if something goes wrong with their home or rental property or its most valuable assets, they will be able to repair or replace them without breaking the bank.
A typical home warranty plan will cover plumbing, electrical systems, HVACs, refrigerators, dishwashers, washing machines, dryers, and other key household and kitchen appliances. It’s reassuring to discover that a house warranty may cover minor items like your cooktop or central vacuum. Add-on coverage is available for items such as built-in microwaves, trash compactors, septic systems, sprinkler systems, refrigerators or freestanding ice makers, well and sump pumps, pools, spas, water softeners, roof leaks, and so on.
In this article, we will discuss what a home warranty is, how it works, and its many benefits!
What Are The Benefits of Home Warranties?
There are many benefits that come along with having a home warranty, such as:
- Coverage for Unexpected Expenses: One of the biggest advantages of having a home warranty is that it can help you cover unexpected replacement and repair costs. This is especially beneficial for an older home and given that the cost of living is constantly on the rise.
- Convenience: Home warranties also offer a great deal of comfort as they will send a technician to your home or rental property to fix the problem rather than finding and scheduling someone yourself. This can save you a lot of time and hassle.
- Increased Home Value: Another benefit of home warranties is that they can actually increase the value of your home. This is because potential buyers will know that they won’t have to worry about any expensive repairs or replacements, making your home more attractive to them.
- Peace of Mind: Home warranties provide peace of mind by taking care of repairs and replacements for you. This can be a huge load off of your shoulders, especially if you’re dealing with a busy lifestyle.
- Improved Customer Service: In addition to the above benefits, home warranties also tend to offer better customer service than many home repair companies. They want to keep you as a customer and will therefore go above and beyond to make sure you’re satisfied.
- Comprehensive Coverage Alongside Your Home Insurance: Homeowners’ insurance only covers damages caused by certain events, such as fires or theft. On the other hand, a home warranty will cover repairs and replacements due to normal wear and tear. This means that you can have peace of mind knowing that you’re fully covered in case something goes wrong.
- Better than Manufacturer’s Warranty: Many home warranties offer better coverage than the manufacturers’ warranty that comes with your appliances. This is because they cover more items and often have longer terms.
- Affordable Home Warranty Coverage: Home warranties offer affordable coverage for your home, which can save you money in the long run. This is because the home repair cost can add up over time, so having a home warranty plan can help you avoid those expenses.
- Customizable Coverage: Home warranties are also customizable, so you can choose the coverage that best suits your needs. This allows you to tailor the warranty to fit your budget and your specific home situation.
As you can see, there are many benefits that come along with having a home warranty. If you’re considering purchasing one, be sure to keep these advantages in mind!
What Are The Potential Drawbacks of Home Warranties?
While home warranties offer a number of benefits, there are also some potential drawbacks that you should be aware of, such as:
- Limited Coverage: One potential downside of home warranties is that they often have limited coverage. This means that there may be certain repairs or replacements that are not covered by your warranty. It’s important to read the fine print of your contract to make sure you’re aware of what is and isn’t covered.
- Extra Costs: Another potential drawback is that they may come with an extra home warranty cost, such as a service fee or deductible. These fees can add up over time, so it’s important to factor them into your budget when considering a home warranty.
- Third-Party Vendors: Home warranties often require you to use third-party vendors for repairs or replacements. This can be inconvenient, as you may have to wait longer for service. In addition, you may not be familiar with the quality of work provided by these vendors.
- Excluded Parts and Components: Some home warranties exclude certain parts and components from coverage, such as remote controls, timers, clocks, etc. Be sure to check the exclusions list before purchasing a home warranty to ensure you’re getting the coverage you need.
As you can see, there are some potential drawbacks to home warranties that you should be aware of. However, these drawbacks should not deter you from considering a home warranty, as the benefits far outweigh the potential negatives.
If you’re thinking about purchasing a home warranty, be sure to do your research to find the best coverage for your needs. There are many home warranty companies that offer home warranties, so be sure to compare and contrast their features to find the one that’s right for you.
A home warranty is a great way to protect your home and save money in the long run. Be sure to keep the advantages and disadvantages in mind when making your decision, as there is no one-size-fits-all answer.
First Premier Home Warranty is a market leader in low-cost home warranty options. With First Premier Home Warranty, you’ll receive comprehensive house warranty protection at an affordable price.
We have over three decades of expertise helping families navigate the challenges of everyday life as quickly as possible after something goes wrong. Our team of skilled and fully certified specialists is dedicated to discovering your problem and resolving it promptly and efficiently, with minimal disruption to your routine. You may rest confident that the systems that keep your family functioning are secure, no matter what.
Get a free home warranty quote from First Premier Home Warranty today!