Guidelines for buying Home Warranties

Owning a home is big responsibility. Renting a home is too, depending on the circumstances. Renting a home is close to home ownership if the maintenance of the home falls on the renter. Renting an apartment is less burdensome because they are often furnished with the large and most expensive appliances. In all cases, there are several solutions available for maintaining all appliances without requiring a large investment. Purchasing a home warranty is one.

Here are 5 guidelines for buying home warranties.


home warrantyUnderstand Home Warranties

There are many household solutions out there available for purchase that target homeowners and renters. A homeowner has to purchase insurance if they are using debt to fund the acquisition of their home. The financial institution wants to ensure that if something happens to the property, their loss will be minimized. A home warranty is not insurance, per se. It does mimic an insurance policy, though. A warranty, in its basic form, is a guarantee. If a product breaks within a given time-frame, the manufacturer promises to fix the issue or pay for a replacement. For appliances, it is usually a 30- or 60-day warranty. For used vehicles, three years or 30,000 miles is a common warranty that the dealer will offer. A home warranty is a service contract. There is a yearly fee attached that depends on how many items will be covered. It is also beneficial under several circumstances.


A great way to find the best home warranty service contract is to do research. There are several companies that offer this solution. The prices vary, and so do the terms of service. As the research is completed, take a look at home warranties reviews, too. Some online review sites rank the most helpful reviews at the top in order to help consumers. Reviews from verified users tend to be the most helpful and authentic. People are willing to share their experiences to help others. Since consumers do not purchase a warranty for their home every day, it is a trickier subject to navigate. So, research is a must. Checking out online reviews can also be educational. Learning from the missteps of others is worthwhile. Honest opinions may lead you to the best warranty provider.

Decide What Has to be Covered

If a used car is purchased, and a warranty is a part of the package, what is covered under the warranty is outlined. A home warranty works differently. The purchaser of the service contract gets to decide what they want covered. A basic policy covers a home’s major systems like the HVAC that includes the central heating, ventilation and air conditioning unit. The hot water heaters, plumbing and electrical components are usually standard, too. If there are other important and expensive appliance items in a home, they can be covered as well. The only catch is that it could cause the premiums to rise. Garbage disposals and swimming pool motors are two items that some include in their service contract.

Set a Budget

After taking inventory of all appliances in the home and research has been started, it is time to set a budget. The prices for a contract varies depending on the provider. Home warranties are popular because they guarantee the repair of an appliance that stops operating as intended at a discounted rate. Appliances do not stop working every day in one home. So, like insurance, a provider in this industry is betting that they will still make a profit even when their discounted services are required. For the consumer, this is one more expense to add to the monthly budget. Whatever contract is picked, it should be one that can be afforded comfortably. It does not hurt to also complete a cost analysis. Consider weighing the cost to replace or repair an appliance without a warranty against the costs with a service contract. Also, take into consider the potential life of the appliance. Warranties are great protection for those living on a fixed budget.

Pick a Warranty

At this point, all the information needed to make an informed decision should be gathered. It is simply about picking the provider that offers the contract that best suits the needs of the property and the consumer. After picking out the home warranty but before signing on the dotted line, read the fine print. It is important to pay attention to the details. Ensure that you understand when the contract begins. Also, ensure that everything that needs to be covered is covered. Find out if there are any exceptions to coverage. Sometimes, an appliance failing under certain conditions might not qualify for repair under the agreement.

Purchasing insurance makes sense in case the unexpected happens because it offers a safety net. A home warranty functions similarly, and it offers several benefits.

Erin Emanuel