A home warranty is separate and distinct from a homeowner’s insurance and aims to cover costly repairs, replacements, and refits of systems and appliances in your home which may be necessary due to normal wear and tear. The period of warranty is usually one year and needs to be renewed annually.
A home warranty may cover a number of appliances and systems at your home, however, not everything. The terms of the coverage contract and the contract price can vary depending on the home warranty that you are choosing. Hence, choose one after due diligence of comparing all the home warranties available in the market.
There are, however, a number of misconceptions in the market regarding this ‘utility product’. People may influence you to believe that a home warranty doesn’t provide much value and is a waste of money, but when you are saved from making those expensive repairs and replacements from your pocket, you can thank your home warranty.
A home warranty isn’t common and is also quite expensive, so, it isn’t necessary
The truth is that a home warranty is probably as important as your home insurance. It can cover items like furnaces, air conditioners, plumbing and electrical systems and other big-ticket items. Mechanical failure is common with these machines and the replacement costs could rise up to the tune of a few thousand and more. A home warranty would probably cost you anywhere between $200 and $500. That is a fraction of the cost you would have to bear if you needed to make an expensive repair.
Home warranty agreements don’t cover the most important items in a home
Home warranties are specifically focused on such heavy expenditures and items that can develop frequent glitches and drain your pocket incessantly. Items like furnaces, air conditioners, locks, electronics, electrical systems, plumbing systems, flooring, as well as remodeling your kitchen, landscaping or even fencing are usually covered under a service contract.
Home warranty contracts and homeowner’s insurance are basically the same product, just packaged differently
While an insurance agreement mainly covers you from damages to your property, you can’t claim insurance in case you want to undertake a big-ticket replacement or repair. A home warranty contract will come in handy then. You can pay a small, yearly premium and make claims for any replacement or repair covered under your service contract.
Home warranty will probably grow more popular with time. It is a wonderful product and is a necessity for a market like Edmonton where people depend excessively on machines like furnaces, plumbing and electrical systems that are prone to breakdowns and malfunctions in the extreme weather conditions. Embrace it tightly and it will always protect you!