Home Repair Insurance: How Does It Work And Do You Need It?

Home Repair Insurance How Does It Work And Do You Need It

When your home needs repairs, it can be a stressful time. You may not know where to turn or what to do. Should you try and fix the problem yourself or call in a professional? What if the repair costs more than you can afford? One option that may help is home repair insurance. Also known as a home warranty, this type of insurance can help cover the cost of repairs for your home. But how does it work, and is it worth getting?

Statistically speaking, the use of home warranty insurance is on the rise. The figures make their own case. Homeowners place roughly two and a half claims each year, on average. Over the previous four years, the house warranty industry has enjoyed a compound annual growth rate (CAGR) of about 12% each year. Home warranties have also grown in popularity as a result of other trends, including Covid-19, climate change, and remote work.

In this article, we will discuss home repair insurance and what it covers. We will also look at when it’s a good idea to use one and when you might be better off fixing the problem yourself.

What Is Home Repair Insurance?

Home repair insurance, also known as a home warranty, is a service contract that helps cover the cost of repairs for your home. The warranty covers items such as your furnace, air conditioner, plumbing, electrical systems, and more. If something goes wrong with any of these protected items, you can call the home warranty company, and they will send a contractor to fix the problem. You will have to pay a service fee (usually around $100), but the home warranty covers the rest of the repair costs.

It’s important to note that home repair insurance does not cover everything in your home. For example, it generally does not cover cosmetic damage or normal wear and tear. It also does not cover damage caused by floods, earthquakes, or other natural disasters. And it does not replace your homeowners’ insurance. Homeowners insurance covers the structure of your home (e.g., the roof, walls, and foundation) and your personal belongings in case of a fire or theft. Home repair insurance only covers the mechanical systems in your home (e.g., heating, cooling, and plumbing).

A home repair insurance policy also differs from a manufacturer’s warranty. A manufacturer warranty only covers items that are still under warranty. For example, if your washing machine breaks and it’s still under warranty, the manufacturer will send someone to fix it for free. Once the warranty expires, however, you will have to pay for any repairs yourself. With home repair insurance, on the other hand, you pay a monthly or yearly fee to the home warranty company. In exchange, your service provider will send someone to fix any of the covered items in your home, even if they are no longer under the manufacturer’s warranty.

Home repair insurance can be a great way to budget for unexpected repairs. Rather than having to pay for a costly repair all at once, you can spread the cost out over time by paying a monthly or yearly fee. And since home warranty companies have pre-negotiated rates with contractors, you may even save money on the repairs themselves.

What Does Home Repair Insurance Cover?

One of the most important things to consider before buying a home repair insurance policy is coverage. Not all policies are created equal, and some may not cover the items that are most important to you. For example, some policies will only cover major appliances, while others will also cover your HVAC, plumbing, and electrical systems.

It’s also important to read the fine print to see what is and isn’t covered. For example, some policies will only cover repairs for normal wear and tear, while others will also cover damage caused by accidents or negligence. Some policies may have a deductible that you have to pay before the home warranty company will reimburse you for the repair costs.

To get an idea of what’s available, here are some of the most common items that are covered by home repair insurance:

  • HVAC system: This includes your furnace, air conditioner, and ductwork.
  • Plumbing: This includes your pipes, faucets, toilets, and garbage disposal.
  • Electrical system: This includes your outlets, switches, and wiring.
  • Appliances: This includes your refrigerator, oven, dishwasher, and washer/dryer.

Of course, this is not an exhaustive list. The exact coverage will vary from policy to policy. So be sure to read the fine print before buying a home repair insurance policy.

When Is It Worth Using Home Repair Insurance?

There are a few things to consider before deciding whether or not to use home repair insurance.

First, think about the age of your home and appliances. If your home is newer, it’s less likely that you’ll need to use your home repair insurance policy. The same goes for appliances. If they’re still under their respective manufacturer warranty, you probably won’t need to use your home repair insurance policy on them since the manufacturer will cover the cost of repairs.

Second, consider the cost of the monthly or yearly premium. Home repair insurance policies typically cost between $200 and $500 per year. That may seem like a lot, but it’s important to remember that one major repair can easily cost several thousand dollars. So if you’re worried about being able to afford a major repair, home repair insurance can give you peace of mind.

You should also consider how old your home is. Older homes are more likely to need repairs, so you may want to consider home repair insurance if your home is on the older side. Think about the age of the house’s electrical, HVAC, or plumbing systems. If they’re getting up there in years, it may be worth paying for home repair insurance to help offset the inevitable cost of repairs or replacements.

A home warranty can increase the appeal of your property to prospective buyers if you’re selling it. Purchasing a house with old or broken appliances and systems is frequently regarded as a risk by homebuyers. A home warranty may assist in easing their fears and make your property more attractive. If you’re a first-time homeowner, a home warranty can provide you with peace of mind. Many first-time homeowners are unfamiliar with the procedures for dealing with appliance or system malfunctions. A home warranty can eliminate the element of uncertainty associated with repairs and replacements.

If you have an older home, finding a home insurance policy that covers your home’s systems and appliances may be difficult. Many insurers are reluctant to cover older homes because they’re more likely to need repairs. If you can’t find coverage for your home, a home warranty may be the next best thing.

Can You Do Home Repairs Yourself?

In some cases, it may be possible or even preferable to do home repairs yourself.

If the repair is minor, like fixing a leaky faucet or replacing a blown light bulb, there’s no need to call in a professional (or file a claim with your home repair insurance company). These repairs are usually pretty quick and easy to do, and they won’t cost you very much.

You may also want to consider doing the repair yourself if you’re comfortable with doing it and you have the necessary tools and supplies. For example, if you’re handy with tools and know how to replace a broken windowpane, you can probably repair yourself without too much trouble.

Another thing to consider is the cost of the repair. If the repair is going to cost less than your deductible, you may want to pay for it yourself instead of going through your home repair insurance policy.

Finally, think about how long it will take to get the repair done if you have to wait for a professional. If you need the repair done right away and you don’t mind doing it yourself, that’s another reason to go ahead and do the repair rather than waiting for someone else to do it.

Of course, there are some repairs that you should always leave to a professional. These include major repairs like electrical work, HVAC repairs, and plumbing repairs. These types of repairs can be dangerous, and they’re usually best left to someone who knows what they’re doing.

If you’re unsure whether or not you should attempt a repair yourself, it’s always a good idea to err on the side of caution and call in a professional. They can assess the situation and let you know whether it’s something you can handle or if it’s something that needs to be left to the experts.

In most cases, home repair insurance is worth the cost. It can give you peace of mind knowing that you won’t have to pay for expensive repairs out of your own pocket. Just be sure to do your research before purchasing a policy so that you know what it covers and how much it will cost you.


Home repair insurance can be a lifesaver when it comes to expensive repairs. It’s important to know what your policy covers and how much it will cost you, but in most cases, home repair insurance is worth the cost.

Choosing the ideal house warranty firm for your property may be difficult, especially if there are several different kinds of coverage accessible. First Premier Home Warranty is here to assist you in determining the best policy for your needs. We offer a free online quotation to assist you in deciding what would be ideal for your home and budget. To help you figure out what choices are available, go now to our website or contact us directly!