Why Buy a Home Warranty?

Why Buy a Home Warranty?

When you own a home, repair or replacement of home systems and appliances are inevitable. Over time, systems and appliances become worn down due to normal wear and tear. HVAC units can slow down or completely stop working , appliances and electronics can break. Faucets can begin to leak, etc.  leak. Repair and replacement can cost hundreds or thousands of dollars. This can be difficult for those on a budget. Rather than emptying the savings account or maxing out the credit card, many homeowners are purchasing home warranties to protect themselves from unforeseen repair or replacement costs.

What is a Home Warranty

A home warranty  or home service agreement, is a plan that provides coverage for unforeseen repair bills for items covered under the particular agreement that would not normally be covered under homeowners insurance or manufacturer's warranty. There are warranty plans that offer coverage for current and ageing home systems and appliances, regardless of make, brand, age or model, in order to protect against possible future repair costs.

How does a Home Warranty Work

When a person invests in a home warranty they are entitled to certain protections as a part of the policy. If a covered system or appliance fails, the repairs are covered as a part of the plan. When a covered household appliance or system fails, the repair service call is handled by the warranty provider. The homeowner benefits by utilizing the fully licensed and insured service provider network. Service will be dispatched and the repair authorized by the provider in accordance with the terms of your policy. In cases where the unit cannot be repaired, the unit is replaced and the cost of the appliance, within the limits of the agreement of the terms, is covered by the home warranty. 

Save Money on Home Repair Costs

Buying a home warranty can help reduce some of the financial strain that new and current homeowners have to deal with when an appliance or home system suddenly breaks down. The savings from a repair or replacement is much greater than the cost of the actual warranty. Without a home warranty, repairing or replacing major appliances or systems could amount to hundreds or thousands of dollars. 

According to HomeAdvisor, the following is a list of the average national costs to replace some major home systems:

Central air conditioner:$5,000 – $12,500

Gas furnace: $3,800 – $10,000

Water heater: $812 – $1,569

Appliance repair: $105 – $240

Depending upon the plan and options that you choose, home service agreements typically cover major appliances and systems that include, but are not limited to:

Central air conditioning and heating

Interior electrical


Water heater




Washer and Dryer

Garage door opener

Ceiling fans

Plus more... 

Electronics Protection Plan coverage for eligible items include: Laptops, Desktops, Tablets, LED/LCD TV’s/Flat Panel/Plasma TV’s, Printers, Gaming Consoles, DVD/Blu-Rays and more, for one low price. In addition, you can select an “add on” to a plan that can include  interior electrical, plumbing, water and sewer lines, central heating/cooling units, well pumps, and more. 

If you have not set aside any money for such sudden repair or replacement expenses, a home warranty can more than pay for itself. It helps you with better budget planning as you don't need to worry about saving for home repairs.

Home Selling/Buying Sales Advantage

If you are selling your home, having a transferable home warranty to offer potential buyers is a great selling point. It helps the listing stand out in the market and it decreases the risk of cost disputes involving systems and appliances breaking down. As well, it reduces post-sale liability. If a covered item breaks down, the new homeowners can contact the home warranty company. Home buyers are able to protect themselves from expensive repairs on covered items. It also provides an easy and fast way to find service providers when a covered item breaks down, and it provides the security of the flexibility of 24/7 service requests. 

Who Should Buy a Home Warranty

If you’re buying a previously owned home or even a new home, buying a home warranty from a reputable company should be a consideration, especially if your home inspection report reveals there are older home systems and appliances. As well, it is important to be aware of the plan’s terms and conditions. You should know if the items you want covered are in fact covered in the agreement, what will and will not be covered, and when coverage begins and how long it lasts. In addition, if you are selling your home, you may want to consider offering a home warranty to buyers as an added bonus. Another good reason to buy a plan is if you have appliances, home systems, and electronics no longer covered by the manufacturer's warranty. It will ensure your items remain protected.

Peace of Mind

A home warranty can give you the security of knowing that your home systems and appliances are protected. You can rest easy knowing that access to a professional service technician is only a phone call away. You don't have to worry about the high repair costs or finding a trusted, qualified technician. As well, if your appliances and systems are older and no longer covered by manufacturer’s warranty, it is to your advantage to get these items covered.

It is too difficult to predict when a home system or appliance might suddenly fail. But when those unexpected breakdowns are covered by a home warranty plan, homeowners greatly benefit. If you do have an expensive repair issue, a warranty can ease financial stress.  Home warranties are worth it if there is no existing coverage for your appliances and home systems and if you find a plan that includes the items you want covered. 

The best home warranty plan is one that meets your needs. ARWHome provides home warranties not only for major home appliances and systems, but we also offer our Ultimate Electronics Protection Plan for new and existing home and computing entertainment products. With ARWHome protection plans, homeowners experience prompt and professional customer service, immediate service for emergencies issues, and efficient response to a request for service within 24-48 hours. This may be the perfect time to purchase a home warranty.

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