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Is it worth having a home guarantee?

Is it worth having a home guarantee?

When you buy a home these days, so many people ask you to buy services that are designed to improve your life experience. Home insurance companies send promotional emails before you move into your new home.

Your real estate agent may be trying to get you to buy a home guarantee. If you are lucky, she will convince the seller to pay you a one year home warranty in the hopes that you will buy the home asap.

If no one is willing to pay for warranty service for you, then you should probably think about it. Dishwashers and washing machines cost in the uptrend of $ 120 for minor corrections. Refrigerators can be more expensive and repairing a leaky plumbing system can be a nightmare.

Which house guarantees cover

The house guarantee covers expensive devices and sanitary systems. Everything from your air conditioning system to water heaters, heating systems, refrigerators and washing machines can be covered. Some companies also maintain electrical systems, ovens, and dishwashers.

Companies offer their services on a plan so you only pay for the devices you use most often. For example, a $ 25 plan for the First American Home Warranty does not cover a sump pump or whirlpool bath pump. These devices require a premium plan, which is $ 41.

Most home guarantee companies also offer you the option of paying additional costs for multiple units that are often not covered by plans. If you would like to receive services for your well pump that are not covered, you may be asked to pay an additional $ 10.

What they don’t cover

Any equipment not included in the plans you paid for may not be covered. Again, most companies don’t care about all of the units in your home. If you are working with a service provider who doesn’t cover refrigerators, you will have to use your own money to fix your broken refrigerator.

In many cases, home warranties will also deny servicing equipment if you never service it. That said, if your washing machine has broken parts and looks old, your warranty company may refuse to service you.

So why pay for house guarantees at all?

  • Device repairs are expensive

Sure, some unscrupulous companies will always find reasons not to give you service, but real service can be worth the monthly cost. Imagine your dishwasher and washing machine fail in the same period of time. Both devices could cost over $ 400 to repair, emergency money that may not always be available.

However, home guarantees are not always cheap or any homeowner would subscribe to them. While monthly plans can cost as little as $ 20, you will be charged around $ 100 if you call the companies to discuss your problems. Hence, it is important that you weigh your options properly before committing to any particular company.

HSA house guaranteeFor example, you are billed $ 480 annually and $ 75 for service calls. You pay $ 75 extra for your water fountain pump and up to $ 150 for your pool. For comparison, First American will charge you $ 44 a month for all major devices, including electrical systems. In a year you would have to pay $ 538, which is more expensive than HSA but covers more units.

If you don’t have $ 200 to fix a broken air conditioner by the middle of the month, you may have to endure extremely cold temperatures at home for two weeks. Guarantees ensure that defective devices are repaired immediately.

Here, too, not every company offers you the opportunity to repair your defective devices immediately. Read through the reviews of some companies and you’ll be shocked at how ruthless they can be. From service calls that are never answered to reps that show up five days later, only the best companies are reliable and fast.

  • Increases your home value

Buyers always exercise caution when purchasing homes with appliances and units pre-installed. You can tell them that by buying a house like this they will save, but still fear that your units are faulty. A home warranty removes any doubts buyers might have about your equipment.

Home guarantee companies operate on the basis of the contract signed at the beginning and not on who owns the house. When you sell your home, buyers can enjoy the benefits of a home guarantee.

  • Could include appliances replacement

Imagine a company that would replace your $ 1,000 water heater for free. Most companies will look for reasons not to keep such promises, but some good home warranties have been known to allow equipment replacement. In most cases, they replace internal parts, which are cheaper than buying new units, but can cost a few hundred dollars.

Make sure your home guarantee has such a policy, and online reviews show that they have been replaced in the past. You can also reach out to them to confirm if they offer such services. However, keep in mind that companies that are willing to buy you a new device have increasingly expensive plans.

  • Available in short contracts

House guarantees don’t work for everyoneHowever, the availability of one-month plans ensures that you can test the services to see if you want them. If you are committed to one company and are looking for ways to opt out of your repair claim, simply cancel the contract and move to another company.

There are no trial periods in the home warranty business, but there are deals that give you discounts on your first month. Use them to test customer support and the efficiency of a warranty service for your home in the first few weeks with them. If you are not satisfied, try a different service.


Home guarantees are becoming an important consideration for new homeowners. Without it, some people just won’t buy your home. A basic home warranty service covers essential equipment and offers repairs if they fail.

The services are not perfect which is why some people would never consider them. However, if you are living from check to check and can’t afford more than $ 200 for repairs right away, you should find a good supplier. Read the guarantees and find reviews for their services online. Make sure you work with the top rated companies.

Check out AFC Home Club Reviews to see the best deals on home guarantees