Yes, You Do Need a Home Warranty

A lot of new homeowners get confused on the differences between a homeowners hazard insurance policy and a home warranty plan. And, many think that a warranty may not be necessary, assuming that they are like those questionable extended warranties they offer you on electronics and small appliances. Well, let me weigh in that a home warranty plan is some of the best money you can spend in protecting your home.

Generally, the homeowners hazard insurance policy covers major damage to the structure of a home caused by natural hazards and accidents, whereas a home warranty plan covers the cost of unexpected repairs or replacement of major systems and appliances that break down due to normal usage. My own home warranty has come in very handy, and I have a relatively new home!

For instance, say you move into a house and you have a plumbing problem a few months later. Perhaps the pipes under the kitchen sink develop a leak and need to be replaced. Instead of calling a plumber and paying several hundred dollars for the labor and parts, you would just call your home warranty representative and then pay a small fee of about $50. It is like having dental insurance and paying a set fee for cleanings. That simple! (To extend the comparisons....the water damage caused by pipes would be covered by your homeowners hazard insurance.)

A home warranty plan will cost you a few hundred dollars a year, and it is well worth it. You will be saving money if you make just one or two repair calls a year. Standard home warranty plans cover items such as the following: heaters and furnaces, dishwashers, ovens, garbage disposals, plumbing leaks, water heaters, sump pumps, electrical, and much more...even some pest control issues. And, if you have special items that need coverage--like that fancy built-in wine cooler--you can get additional coverage.

There are a lot of companies out there, and I highly recommend Old Republic. Not only do they have great rates and coverage, their customer service is unbeatable. If you live in the Bay Area, I can hook you up with Alex Quinzon, their top-notch sales rep.

Home warranties can be difficult to get a handle on, especially if you are a new homeowner. If you have any questions or need guidance let me know. I'm always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net