When your purchase a new home, the expenses can add up and the last thing you need to worry about an unexpected expense. If you are concerned about potential repairs or appliance malfunctions in your new home, you might want to consider purchasing a home warranty. A home warranty is a service contract which helps protect home owners against the cost of unexpected covered repairs or replacement on their major systems and appliances that break down due to normal wear and tear. A home warranty is a good idea for first-time home buyers with no experience maintaining a home.

The cost for these warranties are fairly inexpensive, typically ranging from $250 to $600, depending on coverage. The policies are usually prepaid for a year in advance, at which time they expire or can be renewed. There are many different plans with different requirements, most tend to operate the same way. If an  appliance or item covered breaks or stops working, the home owner calls the home warranty company. The home warranty company calls a provider with which it has an arrangement and they contact the homeowner to come out to fix the problem.  Typically if the problem can be fixed per the contract coverage than the warranty company pays the contractor directly.

Below are some of the items typiclaly covered by these types of warranties. Each company is different so always obtain a list of items covreed before purchasing a policy.

  • Air conditioner system/ Furnace / heating
  • Dishwashers
  • Doorbells
  • Water heater
  • Garbage disposal
  • Inside plumbing stoppages
  • Ceiling fans
  • Electrical systems
  • Range and oven

Typically outdoor items such as sprinklers, or pool filters/spa systems are not covered unless specific coverage requested

Moving into a new home is expensive and having an unexpected repair can easily drain a budget. While part of home ownership requires dealing with unexpected breakdowns and repairs, having a home warranty can help to covered repairs or replacement easier and less costly.