Homeowner’s insurance policies aren’t always extensive enough to cover everything that happens within your home. They often lack coverage for appliances, electrical work, or any associated fallout like flooding. Home warranties supplement your insurance plan, providing much-needed extra protection by covering you for these costly, out-of-pocket repair expenses.
Your home is your sanctuary, but sudden repairs can make it feel more like a money trap. Having the right homeowners’ insurance helps, but it isn’t always enough. A home warranty extends your coverage, paying for costly repairs, appliance issues, HVAC and plumbing problems, major electrical repairs, and more. Get the truth about how a home warranty can help you in this insightful article.
Expensive Home Repairs Result in Big Bills. Home Warranties Reduce Costs!
Heat Pump Replacement
Heat pumps cool and heat homes more efficiently than traditional HVAC systems, but they can be costly to repair when problems arise. In fact, CostHelper places the average out-of-pocket expense for total replacement at around $2,000 to $8,000 for an entry-level home system.
Need to replace your ductwork, too? Expect costs to rise up to $24,000. That’s much higher than what the average American has sitting in savings.
Homeowner’s insurance policies rarely cover heat pump repair, especially if the system was installed post-purchase or post-build. Home warranties, on the other hand, may cover these costs, either partially or in full, with little to no deductible.
Water Heater Breakdowns
Water heater breakdowns often cost a fortune. First, you have the cost of the repair or replacement itself. Then, you have to deal with water damage after leaks or flooding as a result of the breakdown.
Few home insurance policies cover flooding, full stop. But coverage is even rarer after flooding from water heaters, leaving you cash-strapped and potentially struggling with mold or even structural integrity issues.
Home warranties may cover these costs, provided your plan includes systems within the home. Instead of paying thousands out of pocket, you pay a monthly or yearly premium.
HVAC Breakdowns
An HVAC breakdown can be the difference between life and death, especially for seniors and the chronically ill. Staying comfortable and safe in temperatures below zero or above 100 Degrees Fahrenheit is a must, so it makes sense to fix HVAC issues fast.
Costs for HVAC repair vary widely, but you can expect to fork out a flat rate for the visit, labor costs, equipment costs, and any associated work fees. If the HVAC system is totally shot, you’ll pay into the thousands out of pocket. A good home warranty policy with systems coverage should pay for these costs, potentially in full.
Plumbing Problems
Plumbing problems also tend to be expensive for homeowners. As with flooding after hot water heater breakdowns, there is a risk of damage from leaks. Homeowner’s insurance policies may provide partial coverage, but you’re often on the hook for the rest. If caused by a lack of regular maintenance, the repairs may even be exempt. You can protect yourself from paying those costs out of pocket with the right home warranty.
Garage Door Breakdowns
Garage door breakdowns aren’t just annoying; they can be dangerous, too. A door that rises or falls too quickly, or becomes stuck, can cause harm to homeowners, pets, and children. Their mechanical and electrical nature makes fixing the problem complex and pricey. Expect to pay between $400 and $2,000 for replacement if your door isn’t salvageable or repairable.
If your home insurance won’t cover fixing your garage doors, all is not lost. Many of the best home warranties include this type of coverage. You just have to find the right provider.
Major Electrical Repairs
Electrical problems are no joke. If they’re severe enough, they can cause devastating fires that lead to a total loss of your home and potentially, the people within it. Often, homeowner’s insurance will cover extensive electrical problems — but only if you’ve maintained and upgraded the system over time.
Why is that an issue? Most electrical issues don’t become obvious until they’re severe enough to cause symptoms. Problems may lurk below walls where you can’t see them until total failure occurs. Your insurance company then has the right to refuse coverage, claiming you failed in your duty of maintenance even though you weren’t aware.
Home warranties, on the other hand, are much more forgiving, readily covering repairs or replacement for D.C. wiring, fixtures, electrical exhausts, and hard-wired appliances like HVAC systems. Just be sure you’re signing onto a warranty with electrical included.
Issues with Appliances
Few homeowners’ insurance policies cover appliances. Even when they do, the cost of the deductible often makes filing a claim fruitless; it’s easier to just eat the cost of replacing your fridge, stove, or dishwasher. With average deductibles sitting around $500 to $1,000, it’s still a significant sudden expense.
A home warranty can help, but there’s a catch: not every warranty covers appliances in every instance. It’s also important to note that even the best policies may only cover certain devices, not everything in your home. Most plans at least cover refrigerators, stoves, garbage disposals, washers, and dryers.
