Home Ownership’s Hidden Costs: How a Home Warranty Can Help

Buying a new house is an exciting prospect. You’re full of plans and dreams about how you’ll decorate, where your furniture will go, and when you can start entertaining. But what you’re probably not thinking about is what happens if that stove you loved or the central air system you were so excited about breaks down.

Sure, you paid for a home inspection, but that can only tell you what’s wrong now, not what could go wrong two or six or twelve months down the line. Wear and tear takes its toll on all your appliances and systems as time goes by, and you never know when something is going to fail.

Standard homeowner’s insurance doesn’t cover many of the problems that routinely afflict a household. But purchasing a home warranty, which covers most appliances and systems long past the manufacturer’s warranties, can be a wonderful investment for a new homeowner or one making new purchases. With a home warranty, you pay a low monthly fee and a flat rate co-pay** that are cost-effective. It can also save you the time and worry of having to find a reputable service provider, as your home warranty provider handles that for you, sending out qualified professionals promptly whenever you contact them.

Repairing and replacing HVAC, electrical and plumbing systems, as well as major appliances, can be a costly fact-of-life, and one that’s bound to happen sooner or later. A recent nationwide survey conducted by TotalProtect® revealed that 65 percent of home owners had a major home appliance or system repaired or replaced in 2012 and spent an average of $800 in repairs and $1200 in replacements.*

Major appliances often come with a one-year manufacturer’s warranty to cover build-in defects, but they may not start to fail until well beyond that point. A home warranty provides coverage to repair or replace malfunctioning appliances regardless of age, make or model! With the high prices of stoves, refrigerators, washing machines and the like, investing in a home warranty can save you thousands of dollars in the long run.

There’s no limit to the amount of times you can use your home warranty**, and the unceasing protection it offers can take a load off a homeowner’s mind, which means you can get back to the important things. Like figuring out which corner would work best for that interesting-looking vase Aunt Thelma gave you as a wedding gift.

*As reported in a nationwide study of Homeowner Repair and Replacement Costs conducted in December, 2012 by Clientize.com Inc. using a Survey Sampling International, LLC panel. Further reproduction is expressly prohibited.

**See terms, conditions and limitations in the sample contract found after requesting a quote. Covered systems and appliances must be in good working order at time of activation. Non-covered charges may apply. There is no limit to the number of times you can use the service. However, the home warranty may have individual and/or a maximum aggregate claims cap per contract term.


The information in this article is intended to provide guidance on the proper maintenance and care of systems and appliances in the home. Not all of the topics mentioned are covered by our home warranty or maintenance plans. Please review your home warranty contract carefully to understand your coverage.