If you’re looking to protect your appliances and home systems, you may wonder if home warranties are worth it. If you want to learn more about how a home warranty protects your, and your pocketbook, keep reading!
Is a Home Warranty Worth it?
No one can predict when your home systems or appliances will fail. Of course nothing fails at a time that is convenient in our busy lives. A home warranty shields you from unexpected costs and gets your home and life back to normal as quickly as possible; this makes a home warranty is definitely worth it. This type of home protection plan will provide peace of mind if a major home item fails and it will prevent you from spending hours searching for a trusted contractor in your area to complete repairs as well as figuring out how your going to pay for repairs or replacement.
If you’re purchasing a new construction home you may think a home warranty might not be necessary. That’s because your home will come with brand new appliances and systems that are covered by a manufacturer’s warranty. A manufacturer’s warranty protects appliances if they fail due to defective materials or faulty workmanship, not wear and tear. A Wolverine Home Warranty will pick up where your manufacturers warranty leaves off. Manufacturer warranties typically do not cover items that break down due to other causes than defects in manufacturing. Lack of proper maintenance often leads to denial of manufacturer warranty coverage. This is where a Wolverine Home Warranty will save the day for you!
We recommend buying a home warranty if:
- you want to limit the amount you pay out of pocket for repairs or replacements of home systems and appliances.
- you own a home.
- you want protection for all of your systems and appliances.
- you’re planning on selling your home and want to entice potential buyers, our warranties are transferable.
- you don’t want the cost and hassle of dealing local repair shops.
Are Home Warranties Worth the Money?
While you’ll have to pay an annual premium for a home warranty, the benefits far outweigh the repair costs. You will end up recouping every penny you paid for the home warranty with just one service call a year.
For example, the average cost to repair a water heater is $636. If you paid a $400 premium for your warranty and a $100 service fee for a water heater repair, you would still have $136 that could be pocketed for other home expenses.
Benefits of a home warranty
Here are a few benefits you’ll get when investing in a home warranty:
- The peace of mind that comes from knowing you won’t have to pay the full cost of a repair or replacement when a covered system fails.
- Access to a network of experienced, pre-approved service providers, saving you the hassle of locating a trusted local contractor.
- The convenience and simplicity of just one phone number or website to turn to when you need service on an appliance or home system.
- Piece of mind knowing you can contact Wolverine Home Warranty 24 Hours a day to get the ball rolling on your repair needs.
Home Warranties vs. Homeowners Insurance
Don’t confuse a home warranty with home insurance. Both insurance and warranty policies protect your home, they cover different items. A home warranty covers systems and appliances in your home when they stop working due to normal wear and tear, whereas homeowners insurance is designed to protect you financially when your home suffers damage from a catastrophic event, such as a natural disaster or fire.
For example, if lightning strikes your house and a resulting power surge fries your refrigerator, you would contact your home insurer for coverage. However, if your fridge needs a repair because it spontaneously stops working, you would contact your home warranty company for a fix.
Homeowners insurance is required while a home warranty is completely optional. However, it’s a good idea to invest in a home warranty because of the cost savings you will receive over time on unexpected repairs and replacements. Home insurance protects you against things that might happen, such as a natural disaster. Home warranties protect you against things that WILL happen. If you own a home long enough at some point the fridge will breakdown, the furnace will stop working, the water heater will stop delivering hot water. In all of these instances Wolverine Home Warranty will shield you from the high replacement costs of these items and the hassle of managing the repair/replacement.
What Does a Home Warranty Cover?
In general, a home warranty covers whole-home systems and appliances, such as:
- Air conditioning
- Heating
- Plumbing
- Electrical
- Kitchen appliances, like the refrigerator, dishwasher, oven, and built-in microwave
- Clothes washer and dryer
- Garage door opener
Wolverine Home Warranty offers three levels of plans. Three, four, and five star plans. Each step up offers progressively more comprehensive coverage.
How Much Does a Home Warranty Cost?
Before you purchase a home warranty, consider the costs that come with these protection plans.
- Premium—The premium is the monthly or annual fee you pay the home warranty company. The premium will vary depending on factors such as the level of coverage you sign up for. The cost of a home warranty averages between $400 and $700 a year.
- Service fee—The service fee is the fee you’re charged when a service technician comes to your house to make a repair or replacement after you file a claim. The service fee costs between $75–$125 depending on the home system needing service.
- Other costs—If your plan is cancelled and no service have been provided yet there is no cancellation fee. Additional fees will be charged for plans cancelled after services have been rendered.
How Does a Home Warranty Work?
Before you sign up for a home warranty, it might be worth getting a home inspection to verify that systems are properly installed and maintained. The home inspection report may also indicate which appliances are nearing the end of their expected lives, so you can get a better idea of which items need the most protection.
Once coverage begins (typically after 30 days of signing a contract) and a covered item quits working, you would call Wolverine Home Warranty to file a claim or submit a claim online. Once the claim is approved, the we will arrange for a pre-approved service provider to come to your home within 48 hours to assess the problem.
If possible, the technician will make the repair immediately. If a replacement is necessary, the technician will schedule a follow-up appointment to complete the replacement.