If you are like many new home buyers, you are probably asking yourself, “What is home warranty insurance and why should I have it?” Many people believe that their homeowner’s insurance is sufficient protection from unexpected expenses. Unfortunately, this is simply not the case. There are many features of the home to consider and even more circumstances where your homeowner’s insurance just doesn’t cover it.

First of all, home warranty covers the breakage of many major systems in the home. Appliance insurance is also an added coverage of a home warranty. A standard homeowner’s warranty insurance package will include most major appliances, such as kitchen and laundry. Also, major systems, including heating and cooling, and water heaters should be covered. In addition to mechanical systems and appliances, you can purchase coverage for your roof, electrical systems, gas fireplaces, hot tubs, pools, septic, and well pumps, to name a few. You can work with a home warranty insurance company to get coverage for all of the things around your home that you deem necessary. If you have some appliances that are new and it is unlikely they will break or they are already covered under a manufacturer’s warranty, you probably don’t want to waste money covering these items. However, as systems around your home age, it is wise to get coverage for them in the event that they stop working.

Some homebuyers may think the type of residential property they are purchasing may not be eligible for homeowner’s warranty insurance, like a duplex or other multi-family unit. And if these people are buying for the purpose of renting out, they may think that the renter’s insurance will cover everything. However, this assumption could not be more inaccurate. If you are thinking about becoming a landlord, you will be required to provide many or most of the appliances and are responsible for all repairs on the home, unless expressly caused by the tenant. Normal wear and tear, aging appliances and major household systems are the most likely situations that you will face and need to address as a landlord. So, being covered by home warranty insurance is the smartest thing you can do for your investment property.

Not being able to take care of broken appliances and home maintenance repairs promptly due to a lack of money or time could result in the loss of your tenant, which would leave your property and pocketbook sitting empty. Since homeowners warranty insurance ensures that the repairmen are prescreened, you won’t have to waste time finding one. The servicemen are usually dispatched immediately and their work is guaranteed. Not to mention, you will only have to pay for a small service charge out of pocket, rather than the cost of the actual repair, labor and parts. These benefits, when combined with the convenience of only having to talk to your representative from the warranty company, makes buying homeowner’s warranty insurance coverage for your rental property a no-brainer.

Home warranty insurance packages are easily customizable, making them perfect for any homeowner or renter’s needs. You can get basic coverage, which is usually very comprehensive, or add additional items you may be concerned about. Any way you choose to build your homeowner’s warranty insurance, you’ll be glad you made the decision to purchase it after the first time you need to use it.