What Is Home Repair Insurance?

Homes are some of the most substantial investments people make throughout their lives. To keep them in tip-top shape, repairs will need to be made over time. Some of these repairs are incredibly expensive, with things like roofs, foundation repairs, heating, and cooling repairs, and repairs for plumbing and electrical. There are many companies out there that offer home repair insurance. Some people will tell you that home repair insurance is not worth it. Others will tell you that it is an essential part of protecting their home as an investment, as well as many of the more expensive appliances and systems inside.

What Is Home Repair Insurance?

Another name for home repair insurance is a home warranty plan. This is an optional agreement that can save homeowners money on both the repairs and the replacements when appliances inside of the home fail or malfunction. While home warranty plans do not cover things like roofs and foundation repairs, many things that are known to break down are listed in these types of plans.

Most of the items listed, but not all, are things that people use every day, and in some cases, several times a day. Some of these systems are continually running, like people’s heating systems in the winter and their cooling systems in the summer. If you have had an incredibly hot or cold week where your heating and cooling system was essential, imagine a breakdown from normal wear and tear at that time. Not only is replacing the items expensive but not being able to use them while you search for the best deal can be horrendous.

There are numerous different types of home protection plans that people can purchase. This article mainly covers home repair insurance, also called a home warranty. Other available options are called homeowner’s insurance, utility insurance, and manufacturer’s warranty plans. While all of these sound like they could be more or less the same thing, they are each different and useful in different circumstances. Home repair insurance is most useful for people who have appliances that could breakdown. Most people have systems like dishwashers and garage door openers, which can be pricey to replace. By having one of these plans, you can be covered for the sudden and unexpected breakdown or loss of covered items.

It is possible to get a basic plan, but people can also get enhanced plans and customize them with add-ons for specific things that their home has.

What Is Covered By Home Repair Insurance?

Home warranty plans can cover a lot of different items. Some systems can cost a large amount of money to replace, leading to fantastic savings if these more substantial expenses occur. In many cases, people do not have $1,500 to repair or replace specific items and systems in their homes. By purchasing an insurance plan, the sudden and unexpected expenses are taken care of by your home repair insurance provider.

Some items that are covered by this insurance plan are more expensive to repair or replace than others. A heating system, as an example, might not cost an incredibly large amount of money to repair, depending on the problem. If, however, you need to replace your heating system in its entirety, the costs can be over $4,000. Replacement costs for things are often more expensive than repairing them, but eventually, each of the systems covered by home repair insurance will need to be replaced.

Other systems that can cost a lot of money to replace include air conditioning systems, sewer lines, and refrigerators. People's ovens and stovetops can also be a higher price point than some of the other items covered in a home warranty plan. Sewer lines generally cost a lot of money to replace but also cost a lot of money to repair as well. Some of the other items that can be covered include a person’s clothes washer, clothes dryer, water heater, electrical systems, and plumbing systems.

As with any other type of insurance plan, you will want to read over your individual plan to make sure that it covers what you want it to cover. Each insurance company can have subtle differences in what it covers and how claims are made. Take a look at the multiple companies you can find free quotes on here, and consider each company’s strengths. By comparison shopping, you can find the best rates for home warranty plans. Keeping more money in your pocket is essential, so avoid paying too much for an insurance plan.

What Do Home Warranties Not Cover?

Home warranty programs do not cover specific things in your home, but more importantly, there are caps to the coverage you can purchase. While home warranty programs are extremely useful and can help you save a lot of money, they often do not cover the complete cost of repairs or replacements. Homeowners, however, will still save a lot of money in the end.

Another thing that is not covered by home repair insurance programs is pre-existing conditions already known to the homeowner. Getting a home inspection can be useful in proving that your home did not have a condition that you already knew about. While not required, it can be a good thing to have.

Also not covered are problems that happen due to poor installation or maintenance on the home. Coverage helps pay for the costs of things that need to be repaired or replaced due to normal wear and tear. You should also keep in mind that the brand, dimensions, and color of products do not need to be matched by the insurance company.

How Much Does Home Repair Insurance Cost?

In most cases, people will pay between $25 and $75 per month on average for a home warranty plan. More comprehensive insurance plans cost more but also cover more things. Plans can also have a service fee that policyholders pay, which often ranges between $80 and $130. The total cost of your plan will depend on numerous factors, including where you live, the amount of coverage you want, and the provider you purchase a plan from.

Home Repair Insurance For An Old Home

Getting home repair insurance for an older home can be tricky. Maintenance is required as part of your home warranty insurance, so the older home might not meet the requirements in some ways. If you are purchasing an older home, see if the previous homeowners can provide a record of maintenance, home improvements, and manuals for appliances in the house. Without these things, it may be more difficult to make a claim on your home warranty plan. Even if the homeowner cannot provide this to you, start keeping a record of the repairs and maintenance you make in the home. This can help you benefit from a home repair insurance plan in the future, providing additional financial backup if needed.

Can Home Repairs And Improvements Save Money?

The improvements that you make in your home can help you save money on your homeowner's insurance plans. By being proactive, and having newer appliances, the appliances and other systems in your home are less likely to break down. Some people choose to wait until their appliances fail completely and have their home warranty plan to replace them, and others make improvements on their own. Whatever happens, make sure to keep adequate records of home maintenance and replacement costs.