Are Home Warranties Worth the Money?

Of all the questions to trouble humankind - Does humanity have a future beyond earth? Will we ever understand the true nature of consciousness? - deciding whether home warranties are a worthwhile expense shouldn’t be too tricky. But the truth is, there’s a lot to consider, and when we work so hard for our money, the last thing you’d want to do is waste it. 

In this guide, we’ll take a look at the pros and cons of home warranties and try to decide, once for all, whether home warranties are really worth the money.

What is a home warranty?

There’s some confusion about what a home warranty is. It’s not the same as home insurance and nor does it replace it. A home warranty is a policy that protects you from the financial cost of a major household appliance breaking down. For example, if your water heater stops working or your washer stops spinning, your home warranty will cover the cost of a replacement or a repair. Home insurance would not cover the cost of fixing a household appliance. Instead, it protects you in the event of unforeseen damage to your home. 

What does a home warranty cover?

The cost of a home warranty can range anywhere from a few hundred dollars to a thousand dollars depending on the size of your home and the level of cover you want. Although all policies differ in their exact terms, you will be covered for the service, repair and replacement of home systems, such as plumbing, water heaters and electrical work etc., and household appliances, such as a dishwasher, oven range and cooktop, refrigerator, air conditioning unit (sometimes optional) and more. 

If one of your household systems or appliances were to go wrong, you’d pay a deductible, which is usually between $50 and $125, but that’s all you’d pay. The home warranty company will then send out a technician to make the necessary repairs and replace the appliance if required, potentially saving you thousands of dollars over the year. 

What are the pros of home warranties?

There are pros and cons associated with buying a home warranty. It’s important that you understand what those pros and cons are and how they may apply to you so you can make an informed decision. 

Peace of mind

The peace of mind a home warranty brings is not to be ignored. Having a warranty in place will protect you from a potentially significant financial outlay. Buy a home warranty and you’ll also know exactly how much you’ll have to spend on home appliance and system repairs over the course of the year. That makes it a shrewd move if you’re on a tight budget.

Big savings on common repairs

You never know what potential problems your home has in store for you. Household appliances have the unwelcome habit of all breaking down at the same time. That could lead to costly repairs, which will make your $300 outlay on a home warranty look like a steal. 

Cover that suits you

Most providers offer home warranties that can be tailored to suit your particular needs. Some warranties can even be extended to include repair and replacement of pool and spa equipment, ice machines and even home systems such as sump pumps and septic tanks. That means you only pay for the cover you need and not a dollar more.  

What are the cons of home warranties?

The last thing most of us need is another expense, which is why spending your hard-earned dollars on a home warranty requires serious thought. 

You pay the premium even if there aren’t any faults

Undoubtedly the biggest drawback of a home warranty is that you could pay the annual premium and all your household appliances and systems work perfectly. So, although you’ll get the peace of mind that comes from a home warranty, you won’t get value for money.

Most home warranties exclude some repairs

Another disadvantage of home warranties is that not all repairs are covered. For example, if your home floods and a household appliance is damaged, most warranties will not recover the repairs. You must read the specific terms of your warranty to make sure you know exactly what you’re covered for. 

Appliances must be ‘properly maintained’

Most home warranties stipulate that cover is only provided for home systems and appliances that have been ‘properly maintained’. However, what constitutes properly maintained is subjective, and this is a clause that some warranty providers may use to try and wriggle out of paying.  

family with home warranties cooking in kitchen with insured appliances

The decision is yours!

A home warranty could save you a small fortune when something serious goes wrong with your home, but there’s also the risk that it could be a safety net you just don’t need. Ultimately, you must make the right decision for your family, your home and the circumstances you find yourself in at the time. 

At Go Assist, our Appliance Warranty Plan provides cover for all of your kitchen appliances in the event of a breakdown. Take a look at our plan and call our warranty experts on 1 (800) 509-5917 today. 


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