Home WarrantyThe home warranty industry is suffering from serious PR issues much in the same ways that the insurance salesmen of old had bad reputations. A home warranty insurance is an important safety net that repairs/replace the systems and appliances in your home when they break down. You should note that home warranty insurance doesn’t cover damages or losses caused by weather or theft.

Many people mistake a homeowner insurance policy with a home warranty coverage; this overview provides more insight into the specifics of home warranty. Below are some obvious benefits you stand to gain if you purchase a home warranty insurance policy.

You Save Money On Unexpected Home Repair Expenses

The first benefit you get from having home warranty insurance is that you save money on unexpected home repair expenses. It is very hard to predict when an appliance or home system will develop issues or pack up. Murphy’s Law also ensures that those unexpected home repairs often happen at inopportune moments when you are low on cash. The cost of fixing systems such as plumbing, heating, and air conditioning could force you to take soft loans if you don’t have a home warranty insurance.

You Don’t Have To Deal With Contractors

Another benefit of owning a home warranty insurance is that it eliminates the stress of finding, hiring, and managing the right contractor. You may not have the time to conduct due diligence on the most reliable contractor when there’s need to repair a faulty home system. However, a home warranty insurance coverage will eliminate the necessity of dealing with a contractor. You’ll only need to call or send an email for a repair and the home warranty insurance firm will send one of their partner contractors over to do the job.

The Warranty Pays For Itself Over Time

Many people often consider a home warranty insurance to be a needles waste of cash especially when moving into a seemingly “new” home. However, a single service call to file a claim for repairing or replace a home appliance/system might cover the annual premium on the warranty.

Are All Insurance Products Unwise Decisions?

Life is not always black and white and there are large expanses of grey areas. Hence, it will be immature, hasty, and unfair to conclude that all home warranty insurance policies are useless. You won’t conclude that all doctors are useless just because of news headlines about the unethical practices of some doctors. In essence, choosing not to own a home warranty insurance because of someone’s bad experiences is a very risky and potentially costly decision.

You can improve your odds of choosing a reliable, trustworthy, and experienced policy provider by conducting your due diligence before you buy any plan. In conducting your due diligence, you should start by reading home warranty insurance reviews in order to know the quality of service that you can expect from each provider.

You also need to understand that your home insurance policy is a legal contract binding on you and the insurance firm. You need to read your policy carefully to know your rights and responsibilities as a policy holder – of course, you’ll need to know the rights and responsibilities of the insurance firm as week. More importantly, make sure that you understand the contents of your policy (in everyday English) and do not hesitate to seek clarification on the areas that you don’t understand.

About Robert Farrington

Robert Farrington has written 77 articles on this site..

Robert Farrington is the founder and editor of The College Investor, a personal finance site dedicated to young adult and college student finances.

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