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Purchasing a new home is one of the most significant life decisions a person can make. To protect this substantial financial and personal investment, new homeowners should be ready for the possibility of needing to repair expensive home appliances, systems, and structures. Most homeowners can protect their home—and their wallet—with a home warranty agreement or a home service agreement, but understanding the difference between the two can be a challenge.
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A home warranty agreement, or contract, and a home service contract are similar in principle. They both protect homeowners from paying out-of-pocket should something expensive in the home fail. But there are crucial differences for homeowners to be mindful of.
Let’s first take a look at home warranties. A warranty on a home is much like the warranty consumers may have on their car or computer. It’s a guarantee on behalf of the manufacturer to ensure the quality and functionality of their product within a set amount of time. Home warranty coverage typically includes:
Individual home warranty plans may cover various appliances, such as dishwashers and ovens, but this is less common.
Important to note is that the homeowner does not usually need to worry about the home warranty cost. A warranty is backed by the home builder or a third party and is granted to the buyer of the home free of charge. If the homeowner sells their house, the warranty is transferred from the seller to the new owner.
A home warranty protects homeowners from financial setback if a structural or integral component of the home needs to be repaired or replaced. But there are drawbacks to the average home warranty:
Because of these drawbacks, many homeowners supplement their coverage with a service contract, or “extended home warranty.”
A service agreement, or contract, is sometimes referred to as a home warranty, but there are important differences as compared to a true home warranty described above. A service contract can cover the same systems covered by a home warranty, but here are a few other possible items a home service contract covers:
Coverage varies from plan to plan. A service contract may be comprehensive or cover one specific appliance or system. It might even cover only a specific part of a single appliance. The cost of a service contract varies depending on the level of coverage, but consumers can find plans for as little as $300 per year.
Service agreements pose an additional cost to homeowners, but ultimately save money in the long run when homeowners are spared the high expense of repairing or replacing a major home appliance, structure, or system.
Liberty Home Guard provides a variety of affordable services to ensure you find the plan that suits your unique needs. Contact us at (866) 699-4589 or receive a free quote by completing the form below.
The reality of homeownership is that systems and appliances need routine maintenance and attention. Plumbing, wiring, household equipment, and more can break down due to age, use, and exposure to the elements. Many of these home components are expensive, require specialized knowledge for repair,&
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If you’ve lived in rented apartments for a long time, transitioning to homeownership comes with many new responsibilities and considerations. You need to handle your mortgage and possibly manage a backyard. You’ll also have to organize your own repairs, maintenance, and services.
Whenever you are selling a home an opportunity arises to protect it with a home warranty for real estate professionals. At Liberty Home Guard we have a sellers home warranty for your clients which is one of the simplest ways to boost the attraction factor, especially when it comes to older homes&