Do You Need a Home Warranty?

When you’re a homeowner in Clemson, you’re always thinking about how to protect your investment. One of the questions that often comes up is whether you need a home warranty. At first glance, it might seem like just another expense, but a home warranty can be an important factor in how you handle unexpected repairs. So, how do you know if it’s worth it?

A home warranty isn’t the same as insurance, and it doesn’t replace homeowners insurance. It’s a service contract that helps cover the cost of repairs or replacements for certain systems and appliances in your home that break down over time. Understanding what it entails, when it makes sense, and how it can benefit you will help you decide if this added layer of protection fits your situation.

A home warranty is a contract between you and a home warranty provider that offers discounted repair and replacement services on major home components. These usually include HVAC systems, water heaters, plumbing, electrical systems, dishwashers, ovens, washers and dryers, and more.

When one of these items stops working due to age or mechanical failure, you can submit a claim through your warranty company. They’ll send out a technician from their network to diagnose the issue. If it’s a covered repair, the warranty company pays for the work — aside from your service fee, which typically ranges from $75 to $125.

It’s essential to read the fine print, though. Not every situation or breakdown is covered, and some plans limit how much they will pay per item. Still, for many homeowners, that monthly or annual cost provides peace of mind.

You might wonder if a home warranty overlaps with your homeowners insurance. The answer is no — these two work very differently.

Homeowners insurance protects your home from sudden events that cause damage, like natural disasters. It also typically covers personal belongings and liability if someone is injured on your property.

On the other hand, a home warranty covers breakdowns of your systems and appliances due to normal usage. If your fridge fails or your air conditioner goes out during the summer, that’s where a home warranty kicks in.

If you’re a first-time buyer, especially if you're purchasing an older home with aging systems and appliances, a home warranty can reduce the stress of unexpected repair bills. Often, the seller will pay for the first year of coverage as part of the negotiations.

If you’re not handy and don’t want to deal with finding and vetting service providers when something breaks, the convenience alone might be worth it. A warranty company handles the logistics, sends a professional out, and manages the repair process.

If you decide to go with a home warranty, choosing the right provider is critical, as not all companies offer the same level of service or reliability.

Start by checking online reviews. Look for feedback from real customers, and pay close attention to how the company handles claims. Are they responsive? Do they deny claims frequently? Are the service technicians professional and timely?

Next, look at their coverage options and contract terms. Do they cover pre-existing conditions? Will they repair or replace a covered item? Is there a dollar cap per item or per year? Be sure to ask how claims are processed. Is there a mobile app? Can you submit a claim 24/7? Are there limitations on who does the repairs, or will they let you choose your own contractor?

If you choose to purchase a home warranty, there are a few ways to get the most out of it. First, keep all of your appliances and systems maintained. If you ignore minor issues or skip routine maintenance, your provider might deny a claim. Many warranties require you to show that items were in proper working condition before the policy started.

Second, read the contract closely. Understand what is and isn’t covered, what the claim process involves, and what service limits apply. Third, act quickly when something breaks. Don’t wait weeks to report a problem. The sooner you file a claim, the faster you’ll get a resolution.

So, do you need a home warranty? The answer depends on what you want from your homeownership experience. Before you decide, think about your risk tolerance, your home’s condition, and how you prefer to manage property maintenance. Then, weigh the cost against the peace of mind. The right decision is the one that helps you feel confident and covered in your home.

Begin your journey and find the perfect home in Clemson today with Daniel Sanders at Daniel Sanders & Co.