Learn All About Purpose of Home Warranty

Learn All About Purpose of Home Warranty

If you’ve recently purchased a new home, you may consider purchasing a home warranty to protect your expensive appliances. Learn all about the purpose of a home warranty.

Provides Peace of Mind to New Homeowners

There are many benefits of purchasing a home warranty. First, it can help you rebuild your savings account if something should go wrong. You can use the coverage to pay for unforeseen expenses, such as a significant repair appliance. You can also build an emergency fund. This peace of mind can be invaluable to new homeowners, saving you thousands of dollars.

Many new homeowners like the added peace of mind a home warranty offer. It may cost a small service charge for repairs, but added peace of mind is well worth it. Home warranty plans were included in more than 90% of real estate sales in California alone in 2014.

Offers Reassurance to Buyers

A home warranty is not mandatory but can provide a lot of reassurance to home buyers. It’s like insurance for your home – if something goes wrong, the warranty company will come to fix it. Many buyers like this option because it makes buying a home less stressful.

A home warranty company in Texas will protect you from unexpected repair bills, including the cost of replacing major appliances or systems. A home protection plan will cover any major repairs, and it will provide you with peace of mind knowing someone will be there to help you. Many home buyers choose this option over other plans because of the added peace of mind they will receive if something goes wrong. The benefits of a home protection plan are well worth the cost.


The cost of a home warranty varies depending on what you want to cover. For example, some plans cost less than $25 a month, while others cost $100 a month. In addition, there is typically a deductible associated with a home warranty plan. The deductible is a portion of the claim amount you agree to pay, ranging from $75 to $125. In addition, some companies require an additional fee for service calls or diagnostics, which will add to the cost.

The cost of a home warranty plan varies by company, plan level, and coverage area. Most programs offer a one-year maximum. Some plans have a $500 limit on each appliance covered, while others have a different cap for various house parts. Some plans also offer different caps for additional items, like the roof or the basement. The maximum payout for each item depends on the company and the coverage level. Some plans have a deductible for each item.


While the advantages of a home warranty are apparent, you should be aware of its limitations. Exclusion varies for every home warranty company, with some small and severe exclusions. For example, as. A sink’s pop-up mechanism is common exclusion. It was created to avoid overlapping coverage and keep rates low.

Most home warranties will exclude coverage for things not present when the warranty was purchased. For instance, the warranty may not cover the replacement of refrigerator ice makers, which are prone to breakage. In addition, heating and plumbing systems are costly and often have exclusions. A comprehensive home warranty may cover significant heating and plumbing systems but exclude expensive appliances. Fortunately, there are still a few things to look for in a home warranty plan that will limit your financial exposure.

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