New homeowners frequently make the mistake of not obtaining a home warranty because they believe they already have the coverage they need for everything in their home. However, there are a few misconceptions about these warranties that need clarification. The insurance experts at Tri-Star Insurance in National City discuss 4 of these misunderstandings.
1. They Are Interchangeable with Home Insurance
Home warranties and National City home insurance cover the home in different ways. Home insurance provides year-round coverage for dangerous circumstances such as natural disasters, fire, and theft. Conversely, home warranties provide year-round coverage for major and minor appliance repair, as well as replacement costs in case the appliance isn’t salvageable.
2. They Are Costly
You might assume home warranties are expensive because your other bills are. However, home warranties can be very affordable. The average cost is $400 to $600 yearly. When you factor in possible repairs, the cost is fairly reasonable. Most repairs these days are expensive, and homeowners expect a warranty to pay the majority of these costs. The key is searching for the right agency with the services and coverage you want.
3. They Maintain Appliances
A home warranty can cover a lot of things, but it isn’t a shield for appliances. You must keep your appliances running smooth with routine maintenance. Many manufacturers’ instructions provide troubleshooting solutions for common problems, and this kind of routine maintenance can prevent costly repairs from occurring. Additionally, home warranties don’t cover negligence. Try creating a home maintenance schedule for appliance upkeep.
4. They Aren’t Necessary for New or Maintained Appliances
New appliances and maintained appliances can break down without warning, and it doesn’t matter how well maintained the appliance is. For appliances with a warranty attached, understand the manufacturer’s warranty has limitations. While maintaining an appliance for maximum efficiency, a home warranty is still a sound decision for covering sudden repairs.
Though it isn’t mandatory to have a home warranty, it can make for a good supplement to homeowners insurance. If you’d like to learn more about the differences between the two types of coverage, reach out to American Tri-Star. In addition to home insurance, we also offer auto, health, commercial, and cheap motorcycle insurance in National City. Give one of our friendly agents a call at 619-474-3900 for a free quote.