Home Warranties Are Not One-Size-Fits-All

“I did it!” Roxanne beams as she wiggles shiny new keys on her finger and slides into the booth across from her bestie, Kelli. Kelli let out a whoop and the two women start talking about the home that Roxanne just closed on. Roxanne is a first-time homeowner.

By the time the waitress places plates of piping hot food in front of each woman, the conversation has evolved to talking about home warranties.

“Aren’t all home warranties the same?” Kelli asked.

“That’s what I thought too but my agent explained it’s a myth that home warranties are one-size-fits-all. My agent is committed to her clients and her policy is to assess client needs, now and in the future, as well as what a client can afford. This level of integrity is carried across all aspects of her business.” Roxanne excitedly shares with Kelli many of the key things she learned about home warranties.

Isn’t a homeowner’s insurance and a home warranty the same thing?

No. These two things are different. Each provides unique coverage for key areas of a home. A home owner’s insurance is intended to cover setbacks such as fires, hail, property crimes, and certain types of water damage that could affect the entire structure or the homeowner’s personal possessions. In summary, homeowner’s insurance covers the loss of the home and its contents.  

According to Investopedia, a home warranty is a contract between a homeowner and a home warranty company that provides for discounted repair and replacement service on a home’s major components such as the furnace, HVAC, plumbing, and electrical systems. A home warranty may also cover major appliances such as washers and dryers, refrigerators, and swimming pools. Having a warranty is a resource for homeowners to tap into, to help affordably fund repairs and/or replacements.

Do you need to purchase both homeowner’s insurance and a home warranty?

Purchasing both, if its within your budget, can be the right move (based on your home’s condition or age and your priorities). Homeowners that have both the insurance and a warranty have layered coverage to handle the most common setbacks a homeowner may experience across the lifetime of living in a home. This can bring peace of mind. To decide if you need both discuss all of your options with your real estate agent and tap into this experience to guide you.

Can my real estate agent guide me through all of my options?

Absolutely. Discussing your concerns and asking questions will give you enough information to make an informed decision about which types of insurance and/or warranties are right for you and your home. Your realtor has a wealth of information and resources to help you make the best decision. Remember, your realtor is working with you to think of your best interests.  

Which home warranty is the best?

Because you are working directly with a home warranty company, there will be multiple plans and various levels of coverage to consider. It may even be possible to custom tailor a plan for unique aspects of a home. This is why one-size-doesn’t-fit-all when it comes to warranties. These various plans and pricing structures allow many choices to work within your budget.

When should a homeowner purchase a home warranty?

Home warranty companies will have plans available for homes of all ages, conditions, and architectural styles. Most often a home warranty is purchased around the time of the real estate transaction. The warranty can be purchased by the seller to include as part of the house sale or purchased by the homebuyer for added peace of mind.

Since 2004 Sara Lyn Nguyen continues to bring a wealth of knowledge and expertise about buying and selling real estate around the Houston area to those she serves. Sara is a multi-year award winning REALTOR® and relocation specialist where her clients trust her to have up-to-date information on the real estate market. She has been one of Gary Greene’s Multi-Million Dollar Top Producers, and citywide was the #2 Top Producing agent in 2020, #3 in 2021, and #2 in 2022. When it’s time to buy, sell, invest, or relocate speak with a trusted professional knowledgeable in the homes and neighborhoods of Fort Bend/Sugar Land and the surrounding region.