The Cost of Peace of Mind: Understanding the Price of a Home Warranty Insurance

 

Most people don’t have home warranty plans until they are buying their first home. Because of this, these policies are not as well understood, which can lead to confusion for homeowners. Home warranty plans are purchased to cover many major appliances and systems. This includes central air conditioning, plumbing systems, washing machines and more. Many buyers request a warranty for one year in order to cover any unexpected developments on the property soon after purchase.

 

Clearly, a home warranty can be a versatile tool for homeowners. However, when considering such a policy, it can be confusing to think about the cost. Although a home warranty seems like an insurance policy, the cost is determined differently. Therefore, it is important to understand the various factors that affect the cost of a home warranty.

 

The first factor that affects the price of a home warranty is the location. Prices vary widely from state to state. This variation is due to a number of factors, including the overall cost of living and other property regulations in the area. Similarly, the nature of the property itself will have an impact on the cost of coverage. Single family properties have different price points than mobile homes or multifamily properties. The size of the property will also affect the cost of coverage. Smaller homes in general have cheaper coverage options than more expansive homes. In many cases, it is the square footage of the home itself and not the overall property that affects the ultimate cost of coverage.

 

While these factors cannot be changed, the amount of coverage is variable and will impact the total price tag. Basic home warranty plans will have standard coverage options, which means that certain parts of the property will not be included in the coverage.

 

For homeowners that want extra items to be covered, additional coverage can be purchased. Homeowners should look carefully at what a basic policy includes and then consider if additional coverage is desirable for their situation.

Ultimately, no matter what the price tag may be, many homeowners find comfort in knowing that their home is protected if something goes wrong.