Are Home Warranties a Waste Of Money or a Smart Investment?

Home warranties are an extra warranty that covers the appliances in the San Diego home past their original warranty.  Many homeowners choose to get a home warranty when first moving into a home. Even if they have gotten an inspection and many of the appliances appear to be in good condition, there is no telling when they will malfunction.  

To avoid major expenses a home warranty can help to cover repairs or even new appliances if needed.  Investing in a home warranty is an investment in avoiding paying completely out of pocket for major appliances.

What Can Be Covered?

There is a difference between a ‘home warranty’ and a ‘homeowner’s insurance policy.’  Most mortgage companies require a San Diego homeowner to get homeowner’s insurance but they will not require a home warranty.  This is due to the difference in how the policies work. An insurance policy will cover the structure of the home if it is damaged due to a catastrophe while a warranty covers systems and appliances that simply break.

Most warranties will have a standard package where many of the core appliances are covered.  Items like electrical systems and plumbing are usually included. The HVAC system or water heater may be in the basic package, as well. Some kitchen appliances and the washer or dryer can be added depending on the plan.

How Much to Pay

A home warranty will not be included with homeowner’s insurance.  It is an additional cost that the San Diego homeowner can choose to take on if they feel they need additional coverage.  The amount a person will pay will vary drastically according to their area, the coverage, and the additional items that they add to the policy.

San Diego homeowners can choose how much they pay if they decide to get a basic plan that covers fewer items or if they choose many additional items they will pay more.  Many companies offer home warranties, so researching them can help tremendously if finding better prices.  

Why Use a Home Warranty?

Home warranties may seem like an additional cost that is not necessary.  Especially for those first-time San Diego homeowners who are just getting used to paying for home maintenance costs and a mortgage.  However, in the long-run, a home warranty can help save a homeowner more money in the event something does happen to a major appliance.

Those that are moving into a brand new build with all new appliances may not need a home warranty since all of their items are covered under manufacturer warranties.  However, as these warranties expire and the appliances age that is the time to start looking into a policy. Those that buy an older home where warranties are already expired can immediately benefit.

Using the Warranty

Most home warranties have a deductible built into the plan.  There are choices for San Diego homeowners to pay more for a lower deductible.  Once something does break contacting the home warranty company is the first step to starting a claim. At this time, the deductible will be mentioned if the homeowner does not know how much they will need to pay out of pocket.

Many warranty companies have specific companies they work with to perform repairs or replace items.  However, some allow the homeowner to choose who they want to use. After paying the deductible the warranty will cover a portion of the repair costs or replacement costs that are outlined within the warranty.

A home warranty is in place to help San Diego homeowners avoid major costs when appliances break down.  From fixing an appliance to completely replacing an appliance a warranty can help reduce the amount that is taken from the homeowner.  Even if the warranty does not cover the full cost of the repair or replacement it will be significantly discounted.