Owning a home can be really risky, considering all the uncertainties and hazards, which are capable of imperiling a property starting from hail storms and burglars to the furnaces, which break down suddenly. Fortunately, in this situation, people can mainly opt for a vital protection namely the homeowners warranty coverage and this offers a financial safety net in case of any unforeseen calamity. But it is necessary to understand this coverage properly and when it actually makes sense to opt for it.

What does the homeowners warranty cover?

The homeowners warranty coverage mainly safeguards the homeowners and their residences from loss and devastation caused specifically by different types of perils like storms, theft, fire and many other natural disasters, accidents, vandalism, acts of God and other threats, which are spelled out in any policy. This type of coverage covers both the exterior and interior of the homes along with the personal properties of the homeowners. Besides, this type of coverage also protects the homeowners from the liability in case somebody gets injured on the property of the property owner. Even in case you have taken out the mortgage loans to finance your home, there are chances that the lender will ask you to have the homeowners insurance to protect both their as well as your interests.

How can you decide to get the right warranty coverage?


A number of experts suggest that getting this warranty coverage is a great way to shield the homeowners from the potentially costly system and mechanical repairs, which the homeowners insurance never covers. However, others warn that warranty providers often exclude the assumed coverage for some subjective technicalities and questionable reasons. And therefore it is really tough to recoup the investment cost in this type of warranty. Besides, here the homeowners also face the risk of having some shoddy repairs by the insurance provider not chosen by them. Or often they are forced by the warranty service provider to go with the repair while replacement is actually needed.

So, to decide whether the homeowners warranty plan is worthy for your situation, calculate the remaining service years that you can actually count on for every system/appliance that you are planning to cover. At the same time, don’t forget to calculate the cost to replace each component. Then compare the actual cost of every repair or replacement with what you would prefer to pay for the warranty provider.