Home Repair Insurance: What to Know

Home repair tends to take us by surprise. Insurance can help us prepare for an unexpected breakdown, but it can be challenging to make sense of the different kinds of home maintenance insurance policies.

In this post, we’ll demystify the world of homeowner’s maintenance insurance so you can more easily find the best plan for you.

What Is Home Repair Insurance?

Home or house repair insurance is a service agreement to maintain your home’s major appliances and systems at an affordable and predictable cost. You may see it more commonly referred to as home warranty insurance or home appliance insurance.

A standard warranty or repair plan will typically cover the most important equipment in the home. Commonly covered systems and appliances include:

• Plumbing systems
• Electrical systems
• Heating, ventilation, and air conditioning systems (HVAC)
• Water heaters
• Refrigerators
• Dishwashers
• Built-in microwaves
• Ovens, stovetops, and ranges
• Washing machines
• Dryers

Often, you can adjust your policy to include coverage for less common items and services. These include:

• Pools
• Sprinkler systems
• Lighting fixtures
• Garage door openers
• Sump pumps
• Septic tanks
• Gutter cleaning
• Floor and carpet cleaning

With an active plan, your warranty or insurance provider will cover some or all of the repair or replacement costs when a covered item breaks down from general wear and tear.

How Does Home Repair Insurance Work?

The warranty or insurance process is simple. You start by working with your provider to customize a plan with your appropriate level of coverage.

There is usually a waiting period of one month before you can exercise your policy. This reduces the risk of insurance fraud. When the waiting period is over, you can submit a claim with your provider to service a covered item.

Warranty providers partner with professional technicians across the country. When it comes time to service an appliance or system in your home, your provider will take care of finding a qualified technician. This repairperson will communicate with your provider to ensure that your problem is resolved.

How Much Does Home Repair Insurance Cost?

A home warranty or home repair insurance has two associated costs: a premium and a service fee.

The premium is the fixed monthly or yearly cost of the policy. This will vary from provider to provider, and it’s of course dependent on the extent of coverage. The average premium is around $300 to $600 per year.

The service fee is due whenever you submit a claim to repair or maintain an appliance or system. Depending on your plan and provider, this can range from around $75 to $150.

As you shop for a plan, you’ll also want to consider less obvious costs, such as your plan’s deductible or coverage limits. Homeowners are rewarded by careful shopping, however. With the right plan, the total amount you pay for your policy will be less than what you would have paid for repairs out of pocket, saving you money in the long run.

Do I Need Home Repair Insurance?

Unlike homeowner’s insurance, home repair insurance is typically optional. Only you can decide if a home repair policy makes sense for you and your home.

First, consider your level of risk tolerance. If your tolerance is low, a home repair plan may be a good idea. It can provide some peace of mind, simplify your budget, and ensure you’re prepared in the event of an appliance or system malfunction.

Also think about coverage you might already have. For example, if you’ve just moved into a new home with all brand new appliances, your equipment is likely already covered by manufacturers’ warranties. In this case, a home repair policy would be redundant. You would be better off waiting a few years when those warranties expire.

Finally, consider the benefits of a home warranty vs. home insurance. Home insurance will provide protection in the event of theft or disaster. A home warranty will not provide coverage in these scenarios. Conversely, while a home warranty will cover items that fail due to general use, home insurance will not. In this way, a home warranty and home insurance complement one another.

How to Get a Quote

If you think home repair insurance is a good fit for you, call Liberty Home Guard to learn more about the kinds of plans at your disposal. You can request a free quote through our website, or you can call our team at (866)-526-1752.