A home warranty provides protection against the expenses that can come from damages and failures to the appliances within the walls of your home. The home warranty company will pay for the repair or replacement of the damaged appliances.

If you have brand new appliances in your home. Having a home warranty is probably not an ideal purchase for you. Home warranties are perfect for appliances that four years old or older.

Home Warranties Are Great

Having a home warranty has many advantages. It’s essentially the same thing as having an umbrella that covers all the appliance and critical systems within your home.

- If a major system has a break down or malfunction, the best home warranty companies will pay for repairs or replace your appliances.

- There is no need to go looking around for a specialized technician to repair your damaged appliances or home systems. You simply need to call up your home warranty company and pay a small deductible amount to service your appliance.

- If you are trying to sell your home, having a home warranty as a bargaining chip weighs in your favor. It adds value to your property and gives the buyer piece of mind knowing that their home is protected from appliance failure.

- You can be reassured that if you have a major critical system break down, you will have the peace of mind knowing that your budget and home are protected by your home warranty contract.

As many benefits that a home warranty can offer, there are also potential drawbacks from having appliance insurance as well.

1. Repairs can cost anywhere between $50 - $100 for every repair you need. Essentially, you will have to pay a service cost for every appliance or system that you need repaired.

2. It can cost nearly $1000 a year for your annual home warranty premium. If you don’t think that your appliances will break down. It may be easier for you just to pay an independent contractor to handle your service requests.

3. If you need a replacement device, you can surely expect delays.
Contractors will generally not have the needed replacement parts on hand. This means you will have to wait for the company to purchase, send and install the new appliance.

Home Warranties Also Have Other Drawbacks

In addition to the other home warranty issues that might arise, there are few other things to keep in mind as well.

1. Claims can take some time to process as well. The home warranty company, like insurance companies will deem your claim valid once it has gone through the proper channels. Do not let this deter you from purchasing a home warranty though. The customer service you will receive from American Home Shield is second to none.

2. Some appliances will not cover your pre-existing issues for some appliances. Damages because of wear and tear and lack of maintenance as well may not be covered. The best home warranty companies will cover the previously mentioned though.

3. There are some home warranty companies that will only repair appliances and not repair the damaged appliances.

It is critical to make sure that you read your contract and thoroughly so that any potential issues in the future are easily avoided.

Choosing The Perfect Home Warranty Plan For You

Choosing the right home warranty for your coverage needs can be a difficult decision to make for you. Luckily, the market does provide a lot of choices for you to choose from. Like any purchase you make, do proper research. See who the best home warranty companies are out there. As well as what home warranty companies are offering the best plans.