What should a home warranty cover?

Aug 5, 2019 11:25 AM

By: Primary Residential Mortgage, Inc.

At Primary Residential Mortgage, Inc., we know there’s a lot to do when you buy a new home. You may want to put getting a home warranty on your to-do list. Keep reading to learn more about what your warranty should cover and how it works.

What your warranty should cover

Choose a home warranty that covers major appliances and systems that would be expensive to replace or repair.

At minimum, your warranty should cover:

  • Your home’s plumbing system
  • Your heating and air conditioning system
  • Your electrical system
  • Your water heater

Look for a warranty that also covers most of the items below:

  • The refrigerator
  • The oven and range
  • Duct work
  • Toilets
  • Ceiling fans
  • The dishwasher
  • The built-in microwave
  • The garbage disposal
  • Your clothes washer and dryer

In some cases, you can customize a home warranty to add extra protection. For example, you may want to add a pool or well pump to your warranty.

Home warranty basics

Your home warranty’s details will vary depending on who you get it from. A warranty usually costs around $500 and lasts 12 months. It covers major appliances and systems that could break down due to normal wear and tear.

In most cases, a home warranty protects things that aren’t covered by your homeowners insurance.

If something that is covered by your warranty breaks down, you call the home warranty provider and they arrange for a contractor to come for a service call. You’ll pay the service fee, but your warranty company often covers the rest of the cost.

Should you buy a home warranty?

If HVAC systems and appliances in your home are new and still covered under the manufacturer’s warranty, you may be able to get away without purchasing a home warranty.

However, if your home has older systems or appliances, a warranty is probably worth the peace of mind it offers. For example, if your water heater breaks down and needs to be replaced, you could be out thousands of dollars without a home warranty.

Plus, if you’ve just purchased a new home, there’s a good chance you’ve spent your reserves on closing costs, a down payment and moving expenses. A home warranty can help you avoid other unexpected large expenses while you grow your bank account.

Looking for more advice about buying a new home? Contact your local PRMI Loan Originator today!

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