Buying a home is a huge decision. You spend weeks, perhaps months, viewing homes in your area, speaking with sellers, discussing your needs and objectives with a realtor, and more. It’s all about making an informed decision and ensuring that you have peace of mind about your choice. A home warranty can add an extra level of security for homebuyers, ensuring that if something does go wrong, you have somewhere to turn.

Of course, not all home warranties are the same. Educational comparison websites like Review Home Warranties can help you conduct a research about the different home warranties and providers, their policies- how they work, what they can protect, and what they won’t cover.

How Do Home Warranties Work?

Home warranties are somewhat similar to home insurance, but they differ significantly from those policies, as well. Homeowner’s insurance is designed to protect your home and its contents from disasters – fires, collapse, and things of that nature. But what about costly appliances and systems within the home, like your air conditioner? Home warranties cover these systems. When a covered item, appliance, or system goes out, you simply call the home warranty company, pay your deductible or service fee, and they will send a service technician to solve the situation.

The Advantages of a Home Warranty

Home warranties provide quite a few advantages for home buyers. Imagine coming home from a long day at work, ready to relax in your new home only to find that the air conditioning has gone out. You turn the thermostat on and off, even flip the breaker, but the unit does nothing.

The air conditioner was several years old when you bought the home, so there’s no existing warranty coverage on it. If you do not have a home warranty with A/C coverage, your only option is to call a repair/service company and pay out of pocket. Depending on the problem, this could amount to several thousand dollars.

However, with a home warranty, you simply call the company, they arrange for a service professional to come out, the tech fixes the air conditioner, and you’re able to live in comfort once more for much, much less than you would have paid otherwise. That same scenario applies to a wide range of appliances and systems, from heat pumps to dishwashers to ovens and even pool pumps.

Who Benefits Most from a Home Warranty?

Home warranties can provide important protection and peace of mind, but they do not offer the same benefits for everyone. For instance, if you have brand new appliances that are covered by manufacturers’ warranties, there is little point in investing in a home warranty. However, that’s rarely the case unless you purchased your home brand new, unless you purchased an appliance with a credit card and the card issuer offers an extended warranty. So, those who benefit most from a home warranty are buyers who are purchasing an existing home with used appliances that do not have any other type of protection.

What Does a Home Warranty Cover and What Items Are Not Protected?

Home warranties can cover a very wide range of appliances and systems within a home. Some of the most commonly covered include the following:

• Oven
• Stovetop
• Range hood
• Washer and dryer
• Plumbing system
• Central heating
• Air conditioner
• Electrical system
• Roof
• Dishwasher
• Built-in microwaves
• Garbage disposals
• Attic/exhaust fans
• Garage door openers
• A/C and heating ductwork
• Sump pumps

In addition to those, most home warranty companies offer additional coverage options that allow you to expand the protection that you enjoy. Some of the more commonly offered extras include:

• Pool pumps
• Septic systems
• Lawn sprinkler systems
• Well pumps
• Spa systems
• Additional refrigerators or freezers

As you can see, home warranty companies may cover quite a lot. However, there are some things that these policies will not cover, which usually include the following:

• Cell phones
• Tablet computers
• Personal computers (PC or Mac)
• Home theater systems
• Chimneys or flues
• Fire sprinkler systems
• Solar panels and system components
• Home management systems

When it’s all said and done, home warranties provide you with coverage for the important things in your life that might fail due to regular wear and tear without the need for a disaster to strike.