What Is a Home Warranty and How Does It Help Me?

Quite often, home buyers and sellers are not aware of the opportunity they have to protect themselves against the high cost of repair or replacement of their home’s major systems and appliances. This is beneficial for buyers when purchasing a home due to the fact that closing costs can come at a high price. If something goes wrong within the first year of home ownership, having a home warranty in place can turn a $3,000 repair into one that’s under $200. Additionally, this can benefit a home seller during the period while their on the market. Needless to say, having a home warranty will give you peace of mind during the already stressful home buying/home selling process.

Is there a difference between homeowner’s insurance and a home warranty?

This is a common question for most. Homeowner’s insurance covers your home’s structure and possessions in the event of a flood, storm, fire or other emergency. A home warranty, as mentioned above, is to protect you against the high cost of repairs and replacements on systems in appliances in your home. Typically, companies offer coverage on plumbing, heating and electrical systems as well as appliances including oven/range, water heater, dishwasher, garbage disposal, trash compactor and specialty items such as built-in bathtub whirlpool, and central vacuum systems.

How much does a home warranty cost? 

While homeowners insurance is a requirement in the state of Oklahoma, a home warranty is an optional purchase. Some of your most basic coverage start at $450 and will go up from there based on any specialty coverage you select (i.e. pool equipment) and the size of your home.

Something broke, what do I do now?

If something covered under your home warranty plan breaks, you simply call your home protection company and they will put you in touch with a qualified contractor in the OKC area. Something to keep in mind is you typically have to pay a deductible or a service call fee.

What does The RED Team recommend?

While not everyone thinks buying a home warranty is worth the money, we stand by the “better safe than sorry” principle and believe you will have a greater peace of mind if you have one. If you are thinking about purchasing a home warranty and have more questions, please feel free to contact us at (405) 410-9696 and we’ll point you in the right direction!