What is a home warranty?
A home warranty is a service contract with a company that provides repairs and replacements of home systems and appliances. It is usually offered upon purchasing a home. Your seller may recommend one or there might be mails coming in your way to purchase a home warranty. It can be a contract monthly or annually. Service fees and coverage limits differ depending on the company.
A home warranty is not the same thing as home insurance. It does not offer the same coverage, so it is important to know the difference between them.
Home insurance covers the damages and losses to an individual's property caused by unexpected events such as fire, theft, and natural disasters. While a home warranty provides repairs and replacement services on your home systems or appliances such as plumbing, HVAC, electrical, furnace, etc.
Home insurance and home warranties are two different policies that work together to give your home maximum protection. For instance, you have a water leak coming from your pipes. Your home warranty will cover the repair of the pipe and your insurance could cover the damage that caused the leak. With these two policies, you no longer need to worry about the things that may happen as long as it is included in the plan that you purchased.
Are home warranties worth it?
So the answer is yes, it is worth it! Home warranties are supposed to protect you from expensive and unexpected repair bills. For a homeowner who has their budget reserved for other things, this can provide you peace of mind. It may look like an extra expense that you don't need but without a home warranty, you could spend hundreds or thousands of dollars on repairs and replacement of major appliances or systems.
Backyard Realty Group is a full-service real estate brokerage that assists Buyers, Sellers, Investors with their real estate needs by providing exceptional real estate, rental property management, and community management services in the Metro Atlanta area.