Today is National Home Warranty Day. So, we thought it would be the perfect occasion to talk about the benefits of home warranties and how they provide financial protection against unexpected repair costs. Home Warranties can protect buyers, sellers and home owners and may provide you with the peace of mind you need when it comes to protecting your finances from those unexpected expenses.

What is a Home Warranty?

A home warranty is a service contract that covers the repair or replacement of a home's major appliances, mechanical, and plumbing systems due to normal wear and tear. Unlike homeowners insurance, which protects against damage from unforeseen disasters such as fires, floods, or theft, a home warranty provides coverage for everyday breakdowns.

This makes home warranties a valuable asset for:

• Home Sellers – Protects the home while it is listed for sale, reducing the risk of last-minute issues affecting closing.

• Home Buyers – Provides peace of mind that major home systems and appliances are covered in case of unexpected failures.

• Existing Homeowners – Complements homeowners insurance and ensures budget protection from costly repairs.

The Benefits of a Home Warranty

For Buyers

If you are in the process of buying a home, a home warranty can provide an added layer of protection against unexpected expenses. Benefits for buyers include:

• Budget Protection – Helps homeowners manage costs by covering expensive repairs.

• Peace of Mind – Reduces worry about unforeseen mechanical failures.

• Convenience – Many home warranty providers have a network of pre-screened service professionals, eliminating the hassle of finding a trustworthy contractor.

For Sellers

Home warranties can also be a strategic selling point for homeowners looking to sell. Sellers benefit from:

• Coverage During the Listing Period – Protects the home while it is on the market.

• Attract More Buyers – Homes with home warranties are often more attractive to potential buyers and may sell faster.

• Reducing After-Sale Disputes – If an issue arises after the sale that is covered by the home warranty, you won’t have to sorry about being contacted for repairs..

For Current Homeowners

If you’ve been living in your home for a while, a home warranty can still provide numerous benefits, such as:

• Protection Against Wear and Tear – Home warranties cover breakdowns that homeowners insurance does not.

• Cost Savings – A single repair or replacement can often cost more than the warranty itself.

• Convenience – Home warranty companies handle the service request process for you.

Home Warranty vs. Homeowners Insurance: What’s the Difference?

While both a home warranty and homeowners insurance offer valuable protection, they cover different aspects of homeownership:

Coverage:

Home Warranty: Covers repair or replacement of major home appliances and systems due to normal wear and tear (HVAC, plumbing, electrical, etc.).

Homeowners Insurance: Covers structural damage and personal belongings in case of unexpected events like fires, storms, or theft.

purpose:

Home Warranty: Helps homeowners budget for expensive repairs and replacements.

Homeowners Insurance: Protects against significant property damage and liability.

costs:

Home Warranty: Annual premium ($700 average) + service fees per visit ($69-$150).

Homeowners Insurance: Annual premium ($1,915 average) + deductibles per claim.

claims process:

Home Warranty: Requires a waiting period before claims can be filed. Covers issues caused by normal usage.

Homeowners Insurance: Covers sudden and accidental damage; claims are processed more quickly.

What to Look for in a Home Warranty Provider

Not all home warranty providers are created equal. If you're considering purchasing a home warranty, here are a few key factors to evaluate:

1. Coverage Options – Look for plans that cover a wide range of systems and appliances.

2. Service Fees & Deductibles – Make sure the costs fit in your budget.

3. Network of Contractors – Choose a provider with a strong reputation and quality service professionals.

4. Customer Reviews & Ratings – Research feedback from existing customers to ensure reliability and customer satisfaction.

5. Contract Terms & Exclusions – Read the fine print to understand what is and isn’t covered.

Real Estate Agents and Home Warranties

We sometimes recommend home warranties to:

• Provide Added Value to Our Clients – Offering a home warranty can give buyers extra confidence in their purchase.

• Reduce Liability Risks – Home warranties can mitigate disputes between buyers and sellers after closing.

• Differentiate Listings – Homes with warranties often stand out from the competition and attract more interest.

Common Issues Covered by a Home Warranty

A home warranty typically covers:

• HVAC Systems – Heating and cooling components, including furnaces and air conditioners.

• Plumbing Systems – Leaks, pipe damage, and plumbing fixtures.

• Electrical Systems – Wiring, circuit breakers, and outlets.

• Kitchen Appliances – Ovens, refrigerators, dishwashers, and garbage disposals.

• Laundry Appliances – Washers and dryers.

However, home warranties do not typically cover pre-existing conditions, improper maintenance, or structural issues. Always review the terms of your contract before purchasing a policy.

Is a Home Warranty Right for You?

Whether you are a first-time homebuyer, a seasoned homeowner, or a seller preparing to list a property, a home warranty can offer substantial benefits. It provides financial security, convenience, and peace of mind, ensuring that your home remains a safe and comfortable place to live.

If you're considering a home warranty, talk with your real estate professional to explore your options and find the best provider for your needs.

You can always reach out to any of our agents at Live Love Arkansas for assistance at (479) 747-2466.