What Is a Home Warranty & How it Can Save You Lots of Money

If you've purchased a home or are on the market for one, someone will mention the need for a home warranty policy.

The big questions though are what they cover and whether or actually not you need one. We're here to help you decide the answers to these questions.

What Is a Home Warranty?

A home warranty is essentially an insurance policy that covers your home. This policy is not to be confused with homeowners insurance, which covers damages or losses to your entire home or possessions (think fire, flood, and the like).

Home warranties can cost hundreds of dollars annually and often must be paid in full. Some companies offer payment plans to spread out the expense for a new homeowner.

How Much Does a Home Warranty Cost?

The Best Home Warranty Options

Some of the most popular home warranty companies in the US include: – Best Overall: American Home Shield – Best Basic Plan: Choice Home Warranty – Best Value: Select Home Warranty – Most Responsive: Liberty Home Guard

– What does the home warranty cover? Look into which specific problems the policy includes. – How much is the cost of premiums? – What is not covered, or what are the exceptions listed in the policy?

Things to Consider When Reviewing Home Warranty Company Options

Pros of Having a Home Warranty Plan

It is typical for a home seller to offer a one-year warranty to a homebuyer. It may provide some financial stress relief and security to avoid high-cost issues that may arise in the future.

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