Should People Get A Home Warranty Plan?

Some debates and discussions arise when one talks about buying a house; the place, location, price, building, and the security services that come along with it. Investing money to get a home warranty plan is a wise decision when it comes to real estate. There are home insurances available in case something unfortunate happens to the apartment or the building. Home warranty plan provides the same security in case of various appliances and services that it covers.


What is a home warranty plan?

A home warranty plan is a residential service agreement that covers the cost of maintaining certain household appliances and services for a fixed period.

What are the features of a home warranty plan?

When it comes to spending money to get a home warranty plan there might be a lot of questions one has. Here are some points that will help them decide whether or not to get this plan.

  • A home warranty is a legal contract that, for a limited time, covers the cost of maintaining household systems or appliances.
  • Home warranty plans are most essentially advised when buying an older apartment for which all information is not available.
  • A home warranty plan is not home insurance.
  • Home warranty coverage can be estimated between $350 and $600 a year.

Why do people need home warranty plans?

While buying a house from a previous owner, the buyer is offered a home warranty plan as an assurance for the already furnished goods and appliances like the heater, water pipes, electric circuits, etc. This is offered as a security service against expensive, unforeseen damage repairs.

The following are the reasons why a buyer should opt for a home warranty plan:

  • Saves budget from costly repairs on listed items
  • Provides an easy, time-efficient way to find service providers when an item under warranty breaks down
  • Provides the guarantee of free service calls and flexibility of 24/7 service requests
  • Secures covered home systems and appliances for a year or more after closing

How does a home warranty plan work?

o  If a listed item is damaged, the homeowner contacts the home warranty provider.

o  The warranty service company usually works together with many home service providers, such as plumbing or electrical contractors.

o   After being apprised of a claim, the warranty company notifies the people from the required service who assess the damage and provide a report to the warrantor.

o  The assessment report unveils the magnitude and potential causes of the breakdown of the appliance.

o  The home warranty company verifies if the claimer’s contract covers the appliance that is damaged.

o  If it gets approved, the contractor is appointed by the warrantor to repair or replace the item.


What items are generally covered in a home warranty plan?

A home warranty plan usually covers essential appliances such as water heaters, stoves, plumbing, refrigerators, HVAC, electrics, etc.

People are advised to read the warranty document to understand what it covers and what it excludes. Some warranties cover garage door openers as part of the basic coverage plan while others may not.


The homeowner should carefully analyze the offerings before they get a home warranty plan. They should understand the contract of the warrantor and be aware of what is covered and which expenses are not. Home warranty benefits a lot of people including the buyer and seller.

All opinions expressed on USDR are those of the author and not necessarily those of US Daily Review.