Home Warranties: What You Need To Know

A home warranty is a service contract that pays the cost of repair or replacement of covered home appliances and home systems. A warranty plan provides financial peace of mind in the event that unexpected problems with kitchen appliances, plumbing, electrical systems, and HVAC systems lead to unexpected expenses.

Homeowners insurance covers your home and belongings if they are damaged or lost due to fire, theft, natural disasters, or other covered perils. A home warranty is an add-on that provides coverage for home systems and home appliances that are in good, working condition when assumed and then breakdown due to normal wear and tear.

Who should buy a home warranty?


It’s a good idea to purchase a home warranty if you buy a previously owned home, especially if your pre-purchase home inspection shows that several major appliances and home systems are on their last leg. It’s not uncommon for home sellers to sweeten a real estate transaction and offer a home warranty to prospective buyers. It’s not worthwhile to purchase a home warranty for a new home. A newly built home usually comes with a type of builder warranty for the materials and workmanship. Builders don’t usually cover appliances, but these should come with a manufacturer’s warranty.

2021 has turned out to be a great year for home sellers. Real estate is in high demand and the supply of homes is at a record low. This is causing competition among prospective buyers who are more willing to make compromises to land a piece of real estate. Many of today’s home buyers aren’t taking the time or spending the money to have professionals perform a home inspection before purchasing. A real estate home warranty protects home buyers from the high cost of repair of appliances and major home systems. Rather than pay the full repair cost, you pay a small service call fee when you need to make a service call.

AFC Home Club offers homeowners the best real estate home warranty plan available. Home warranty costs depend on the property type and whether you purchase a basic plan or an extended plan as well as additional coverage options. The last thing you want to experience as a new homeowner is the cost of an unexpected breakdown.

What are the benefits of a home warranty?


A home warranty covers you from the shock of unexpected expenses of appliance repair and replacement. This peace of mind is especially beneficial for homeowners who don’t have an emergency fund. A warranty plan is also a good idea if you don’t want to worry about finding a contractor, or if you have expensive appliances. Home sellers often offer home buyers a fully paid, year-long home warranty as an incentive and protection against buyer complaints.

Your home’s windows help keep you and your home comfortable. When it’s time to install new windows or replace windows, it’s a good idea to work with an experienced contractor. All-Weather Seal has years of experience installing vinyl window replacements in Traverse City. Their expert technicians also offer roofing, siding, and patio door installation services. When it comes to finding quality, affordable Traverse City windows, the Better Business Bureau-rated contractor has what you need.

There are some drawbacks to a home warranty.


A home warranty plan won’t cover poorly maintained items, and home warranty companies and warranty holders don’t always agree on what’s considered proper maintenance. When you purchase an older home, there’s always the possibility that the previous homeowner didn’t maintain the major home systems and appliances. Warranties have many exclusions and dollar limits per repair, per year which isn’t good news if you’re facing previous neglect.

Purchasing a home warranty plan is far cheaper than covering the cost of repair or replacement out-of-pocket, however, you may go years at a time without any unexpected breakdowns. It’s worth noting that home warranty companies work with their own contractors and technicians, which means you have no choice in who comes for a service call.

A big responsibility of homeownership is paying for the costs of your home. A home warranty plan provides coverage for important home systems and appliances so you have financial peace of mind when facing an unexpected breakdown.

Written By
Dominic Olsen
Financial Expert | Contributing Writer
Dominic Olsen

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