How Much Home Warranty Plans Cost and What They Cover

Home sales in the United States have reached their highest point in almost 15 years based on figures from the residential real estate sector. Homeowners across the country have the protection of insurance coverage to pay for certain types of damage and loss. Of course, insurance doesn’t exactly cover all types of losses. That’s where home warranties come into play.

Providing Extra Protection for Homeowners

Though home warranties can be crucial, only a fraction of homeowners actually have them in place. In fact, research indicates that less than a quarter of the nation’s homeowners actually have home warranties at this point. Many shy away from them because they aren’t quite sure how much home warranty plans cost or exactly what they cover. Digging deeper into these protective measures can help homeowners understand why they’re important and what they’ll get for their investments.

Looking at Home Warranty Plans and Pricing

On the most basic level, homeowners can purchase home warranty plans for about $25 per month. Those plans provide minimal coverage, but the help they offer is no less essential. They give homeowners added protection against kitchen appliance breakdowns and other small-scale problems that could arise. From there, plans grow more costly, but they also become more inclusive.

 

Beyond the Basics

Other home warranties may cost anywhere from $40 to $100 per month. Those plans offer more extensive coverage than their basic counterparts. Though they still cover kitchen appliances, like refrigerators, stoves, and dishwashers, they also span beyond the basics.They may cover washing machines, dryers, HVAC systems, electrical and plumbing, and many other components of the home or in apartments for rent in durham nc.

Plans in this price range may only cover certain types of damage and wear. They may also apply to only specific components of appliances and systems, such as those that are essential to functionality. Cosmetic issues and non-essential functions are often left out of the mix. At the same time, these plans may not cover the full cost of service calls. They typically have price caps in place.

Getting Extra Coverage

Some home warranties exceed the general price ranges mentioned above. They also offer even more coverage for household problems. They often provide higher payouts for service calls and provide coverage for more components and systems than other plans. Some may even cover certain types of roof damage, outside faucet repairs, pool equipment damage, and other issues. Some go as far as to cover the losses and damages caused by appliance or system malfunctions.

 

Understanding What Home Warranties Offer

Keep in mind, home warranty plans vary by provider. That’s true of both prices and coverage. It’s important to read all the fine print before choosing a plan. Additionally, some providers offer customized plans that allow homeowners to choose exactly which systems and appliances are covered depending on their unique needs and concerns. Many also allow customers to add on additional coverage for elements not included in standard plans.

Basic, low-cost plans generally offer minimal coverage. For some, though, that’s enough to ward off unexpected expenses that could cause hardships in the long run. On the other hand, many homeowners find they don’t have enough coverage when something actually goes wrong. Despite having a home warranty, they end up paying out of pocket for expenses they thought were covered. Be sure to study different plans carefully to understand just how much protection they provide.

 

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