Are Home Warranty Plans Still Viable in 2021?

Home Warranty

The answer to this question is a resounding yes. Rather than a decrease in value, most home warranties have become better. So, going into 2021, this type of plan makes perfect sense as a homeowner. Now, in saying that, you need to realize that along with finding the best home warranty plans, you’ll also find some that aren’t worth the money. That’s why it’s so important to go with a reputable company with a long history of excellence.

A Brief Introduction

Just in case you’re not sure what this is, a home warranty is a type of protection plan that you buy for things inside and outside of your home. You can think of this as a type of insurance policy that protects you financially should something break and need repairing or destroyed and need replacing. This covers appliances, electronics, garage doors, sewage backups, electrical issues, and much more.

The best home warranty offers optimal protection for a nominal fee. Depending on the company, you would pay between $300 and $600 a year for the plan and $36 to $150 per service call. Regardless, the way it works is that if something gets damaged or destroyed, you make a claim with the warranty company. From there, a representative gives you a list of participating professionals. In exchange for the service fee, the expert either repairs or replaces the item at no additional cost to you.

Pros of the Best Home Warranty

The following are the three biggest reasons for going with a reliable home warranty plan.

  • Cost Savings – You can save a tremendous amount of money by having a home warranty. For instance, if your furnace goes out, any out-of-pocket repair could cost you hundreds of dollars. However, if you need the furnace wholly replaced, you’re looking at spending a lot more. With a warranty, you only pay the service fee. Even if the furnace needs replacing, you don’t spend another dime.
  • Convenience – There’s also the convenience factor to consider. Typically, when something goes wrong, you’d have to spend valuable time making phone call after phone call to find someone qualified to assess and correct the problem. Instead of rushing around to get quotes, the warranty company provides you a list of experts that service your area and the type of equipment or system involved.
  • Peace of Mind – As a homeowner, you have enough to worry about. Having one of the best home warranty plans eliminates a lot of stress when things go wrong. Knowing you won’t have to fork out thousands of dollars to replace an air conditioning system or pay a plumber to handle a sewage backup makes owning a home far more enjoyable.

Cons of a Home Warranty Plan

Fortunately, by choosing one of the best home warranty plans, you don’t have to worry much about disadvantages. Even so, there are a couple of things to know.

  • Some Exclusions – Even a top-of-the-line warranty can have limitations. First, every company is unique so before making your decision, be sure to read all the material carefully. Second, the phrase “properly maintained” is commonly used, which constitutes different things on a company-by-company basis. 
  • Per Incident Coverage – The other thing you need to research is any limits on what’s covered per incident. Sometimes, a warranty company will cap the amount they’ll pay for either a repair or replacement.
  • Code Upgrades – One final thing to consider. If something breaks and is no longer in code, it could cost a tremendous amount of money to bring it up to standards. In that case, the warranty provider might set monetary limitations.

Still Worth It?

Yes, choosing the best home warranty plan in 2021 is still an excellent investment. Compared to what you’d have to pay out-of-pocket without this protection, there’s no other way to go.

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