Similar to your home, your household appliances also deserve a safety net, and this is what home warranties provide. Your household appliances are bound to break down over time due to daily wear and tear. Repairing or replacement can cost hundreds of dollars. In such a scenario, home warranties allow you to safeguard your monthly budget from expensive home repairs. Though home warranties work similar to insurance, they are not entirely the same. It is a yearly contract that covers the replacement and repairs of any damaged household appliances.

How does it work?

• Request service : If any of your household appliances gets damaged, the home warranty provider connects with the brand or a technician to fix the problem.
• Schedules service appointments: The home warranty company will schedule an appointment for the technician to visit your home and assess the appliance.
• Solution: Post diagnoses, the technician will either fix it or replace it completely. For both options, the product needs to be under warranty.

Home warranties usually cover your dishwashers, air conditioners, ceiling fans, oven, water heater, refrigerator, music system, and doorbell.

Benefits
Breaking down of electrical appliances is a common scenario in every household. It is pretty challenging to deal with the breakdown of expensive household items. Fortunately, taking home a warranty can reduce the stress and anxiety associated with such events.

• Acts as a buffer: Electrical appliances are expensive and bound to break down. A home warranty acts as an emergency fund to pay for unforeseen repair bills without causing significant strain on your finances.

• Peace of mind: Homeowners need not bother about tracking contractors to fix the problem. The service provider will make it a point to resolve the issue immediately and provide them with the necessary details.

• Coverage: You do not have to dig deep holes in your pocket to buy a home warranty. There are different types of protection and plenty of providers offering different packages. As per your budget, select the one that suits your requirements.
• Verified technicians: You do not have to worry about appliances as all technicians are verified professionals who have good experience in handling repairs of home appliances.

Cost
Premiums of home warranties vary depending on the coverage. Also, the size of the property is a determining cost factor. Providers offer various plans that suit the needs and budgets of different people.

• An average warranty price ranges from USD 300 to USD 700 a year. For extended coverage, homeowners have to pay an additional fee that ranges from USD 100 to USD 500 a year.
• Apart from the annual premium, there is an additional service fee the homeowner needs to pay every time they request for a technician to examine the problem. The service fee usually ranges from USD 75 to USD 125 per visit. If more than one technician is required (for instance, an electrician and a plumber), the homeowner has to pay a separate fee for each technician.
• In case of a denied claim, the homeowner would still need to pay for the service fee and repair costs.

Getting a home warranty gives you peace of mind, but it does not mean that you do not have to spend anything on your home repairs. Also, the company might not cover items that are not maintained properly.

It is always a good idea to purchase a home warranty to protect your home components. However, it is not the perfect solution. So, invest some time to go through the contract and consider whether it is suitable for your home or not. Only hire reputed service providers who have a verified team of technicians and pay for legitimate repairs.