Many people underestimate how expensive sudden home repairs and replacements can be when major appliances break down due to normal wear and tear. Most people also underestimate how often this happens. Seven out of ten people experience a major system or appliance in their home failing every year. If you want to protect yourself from unexpected repair and replacement costs in the future, and invest in your financial stability, it's a good idea to look at a home warranty.

Choosing a Home Warranty 

There are two parts to choosing a home warranty. First, choose the company from which you'd like to purchase a warranty. You should look for a company that pays a high percentage of their claims and has been in business for a long time. This indicates they are reliable and their customers are highly satisfied. Another indicator of a strong home warranty business is a high number of homes protected. If you want a company with all of these attributes, you should be considering 2-10 HBW.

The next step is choosing your specific plan. Most warranty plans come with different packages. Look closely at what each one covers to make sure you're covering the appliances and systems in your home completely. A basic plan may not cover a system like a spa or pool system, but it is vital to find a warranty that protects those systems if you have one in your home.

What is a Home Warranty? 

A home warranty is not a warranty in the typical sense. It is a home service contract that will cover any repairs or replacements of appliances or systems in your home resulting from old age or normal use. With a home warranty, you pay a service contract fee every year, and your home warranty company agrees to repair or replace appliances without additional charges, except perhaps a small fee. You do not need to own a house to have a home warranty. They are also helpful for condo owners.

A home warranty will cover a wide variety of appliances and systems in the home. You don't need to get a home warranty for each of the items as the warranty will cover all of them together. Most home warranties will cover appliances like refrigerators, ovens, dishwashers, washers, dryers, and built-in microwaves. They usually also cover air conditioners, furnaces, plumbing, water heaters, electrical panels, and electrical wiring. Some warranties may include, or have the option to add, protections for wine coolers, stand-alone coolers, roof leaks, pipe leaks, septic systems, spa and pool systems, and water softeners.

Why is a Home Warranty Important? 

Most people can't take on the unexpected cost if a major system or appliance fails. Roughly 63% of Americans are currently living paycheck to paycheck, meaning that a single unexpected bill could place their financial future in jeopardy. A home warranty is an investment towards reducing future costs that will help save you money in the long run while also giving you the peace of mind you don't need to worry about the cost of sudden home repairs.

Don't wait until you're faced with a major unexpected repair to secure a home warranty. Home warranties will give you a sense of relief that you don't need to worry about your appliances and systems.