Real Estate

The Advantages Of Knowing About Home Warranties

Home warranties are a great way to protect your budget from expensive repairs. They can also give you peace of mind. You’ll know the home warranty company will take care of repairs and provide unlimited service calls. A home warranty in Colorado also protects your home seller from post-sale liability. Finally, it gives buyers peace of mind that they can make the best offers on a property.

Buying A Home Warranty

Buying a home can be exciting, but it’s also a huge responsibility. As with any big purchase, your own home requires a significant financial investment and a lot of maintenance. Unfortunately, you can’t tell everything about your home from a tour, but a home warranty can offer valuable information about how to keep your home in great condition.

Home warranties cover a specific set of household systems. These systems may include plumbing, electrical, and appliances. They differ from homeowners insurance, which protects you against unexpected and accidental damages. While your mortgage company typically requires homeowner’s insurance, a home warranty is optional. A home warranty can help make your property more appealing to buyers and prevent the need for expensive repairs after the sale.


Home warranties can save you money on many expenses. However, the cost of a home warranty plan depends on where you live. Some areas are more expensive than others. The type of building you live in will also affect the cost. Multi-family buildings tend to have lower costs per unit than single-family homes.

Purchasing a home warranty plan involves a monthly or annual premium, which transfers the risk of unexpected breakdowns of your home systems to the home warranty company. You will also pay a deductible, a percentage of the claim amount you agree to pay out of your pocket. 


When considering a home warranty plan, it is important to look at its coverage list. Typical coverage includes repairs to major systems and appliances. It should also cover items that run down over time or require expensive repairs. It would help if you also looked for coverage for the basics of home comfort, such as air conditioning and heat.

You can also purchase premium coverage, which extends coverage beyond the basics. For example, this coverage will cover additional appliances, such as wine refrigerators. You may need to upgrade your home warranty contract to get coverage. Depending on your needs, premium coverage will also cover certain home improvements, like a pool or a wine cellar. Home warranties vary in cost and coverage, and you can purchase one from the seller or the buyer at closing. You can also browse home warranty brochures to compare coverage and prices.

Warranty Claim

Home warranty plans generally come with two costs: a monthly or yearly premium and a deductible. The monthly or yearly premium covers the coverage of unexpected breakdowns. In contrast, the deductible covers the part of the claim you must pay when a professional comes to your home. The premium for a home warranty plan varies depending on the plan. Some companies offer a yearly payment plan, while others offer monthly or quarterly payments. Premiums vary greatly, so it is important to understand the coverage of a home warranty plan before signing up. Many home warranty plans cover major appliances and systems within the home. They also typically cover aging and natural wear and tear.

Cheryl Henson

Cheryl Henson is a passionate blogger and digital marketing professional who loves writing, reading, and sharing blogs on various topics.

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