Home warranties: What they do and how they help you
Home ownership is expensive. Once you’ve completed the home-buying process and moved in, home maintenance and the associated costs become your responsibility. What do you do and who do you call when something major breaks down, and how can you afford it? Today, we’ll show you how a home warranty from 2-10 Home Buyers Warranty (2-10 HBW) answers these questions and more.
What is a home warranty?
A home warranty is an annual service contract. Home warranties help homeowners protect their home’s systems and appliances against routine breakdowns caused by normal wear and tear. A system is something like your plumbing and water heater, electrical system, or air conditioning. An appliance is something major like your dishwasher, refrigerator, or oven, not something like a juicer or KitchenAid.
Why does that matter to you?
- Nearly 7 in 10 homes experience a home system or appliance breakdown in any given year.
- On average, the upfront cost to repair or replace breakdowns to systems and appliances could range from over $250 to $6,400.
- If you’re new to the neighborhood, finding trustworthy contractors to fix your breakdowns can be challenging.
In short, a home warranty from 2-10 HBW can reduce the upfront costs of breakdowns, connect you with trustworthy local contractors, and give you peace of mind that you have a solution for breakdowns. With so much to do and so little time and money to do it, a home warranty can make life less stressful for you as a homeowner.
What does a home warranty cover?
Different home warranty companies cover different things. However, one consistent part of coverage across most home warranty companies is that coverage applies to items that break down from normal wear and tear.
For example, if your refrigerator broke down and the cause was a fire, your home warranty wouldn’t apply (but home insurance might—more on that later). Likewise, if you misuse or abuse a covered item—such as by not maintaining a system or appliance properly—coverage wouldn’t apply, since misuse and abuse preclude normal wear and tear.
While we can’t speak to what other home warranty companies cover, we can give you an overview of what some of 2-10 HBW’s most popular home warranty plans cover. You can get a personalized, no-obligation quote on these plans via our Pricing and Plans page.
Simply Kitchen: 2-10 HBW’s most affordable plan
With the Simply Kitchen home warranty plan, you can cover your kitchen’s most important appliances. Simply Kitchen includes base coverage for the following kitchen appliances:
- Built-in microwave
- Oven, range, and cooktop (electric and gas)
- Refrigerator with ice maker/crusher and beverage dispenser
This home warranty plan does an excellent job of keeping your home appliances protected against routine breakdowns. Plus, it’s 2-10 HBW’s most affordable plan, starting as low as $19 a month.
However, this plan doesn’t cover things like plumbing systems, electrical systems, or air conditioning. But if you’re looking to protect kitchen appliances, this home warranty plan is a great option.
Complete Home: 2-10 HBW’s best-value plan
When you need protection for more than just kitchen appliances, 2-10 HBW’s Complete Home plan gives you more. Complete Home includes coverage for appliances (see Simply Kitchen above) in addition to your most important home systems.
- Heating and cooling: Includes coverage for one centrally ducted electric or gas heating and cooling system, all thermostats, and interior gas lines (when applicable)
- Plumbing: Includes but isn’t limited to water, drain, waste, and vent pipe leaks and breaks; gas and electric water heaters; and tankless, power, and direct vent units
- Electrical: Includes wiring, switches, outlets, panels, and doorbell systems
Complete Home provides fuller coverage for common breakdowns. That means less worrying about what might go wrong with your home’s systems and appliances, and more time enjoying home ownership.
Pinnacle Home: 2-10 HBW’s most comprehensive plan
Finally, 2-10 HBW’s most comprehensive plan is the Pinnacle plan. Pinnacle takes Complete Home coverage and adds even more protection to it.
When you purchase the Pinnacle plan, you get 2-10 HBW’s Supreme coverage, which provides deeper protection for the things that matter most in your home.
For example, with Pinnacle, you get coverage for your appliances plus coverage for things like clocks, racks, dials, springs, and handles and hinges. For a fuller list of things that Supreme offers, check out our article on our Pinnacle plan.
In short, Pinnacle offers the most comprehensive home warranty coverage for you at an incredibly fair price.
Do these home warranty plans cover anything else, like roof leaks?
They can! For every plan 2-10 HBW offers, you have the opportunity to add optional coverage. For example, if you wanted to make sure that you have coverage for roof leaks that occur over your home’s living space, you could add our roof leak coverage to your home warranty plan.
Doesn’t my homeowners insurance do the same thing?
No. This is common misconception that often catches homeowners by surprise.
Homeowners insurance usually covers instances like fire, theft, weather damage, and vandalism. It can also protect you if someone gets injured or dies on your property. It does not cover routine breakdowns to your home’s systems and appliances. Virtually every mortgage lender requires you to have this kind of insurance to obtain a home loan.
Home warranties, on the other hand, do cover routine system and appliance breakdowns. However, they don’t cover damage or breakdowns to your systems and appliances that are caused by things like weather. While mortgage lenders do not require a home warranty to obtain a loan, many homeowners and real estate agents choose to purchase a home warranty to complement homeowners insurance coverage.
What’s an example of the difference in coverage?
Let’s use an easy example of a breakdown and collateral damage the breakdown causes to point out the difference in coverage.
Say you have a refrigerator that you use properly and maintain well (e.g., you vacuum the condenser coils regularly and don’t overload it). One day, after working well for years, it breaks down. Even worse, the water it leaks causes damage to your kitchen floor. Fortunately, you have a home warranty from 2-10 HBW with refrigerator coverage and homeowners insurance. But which covers what?
In this instance, your home warranty would cover the breakdown of your refrigerator. However, for the damage to your kitchen floor, you’d need to reach out to your insurance company to see whether they cover that.
Check out our article about the differences between home warranties and homeowners insurance for more information.
How much does a home warranty cost?
The cost of a home warranty depends on your coverage.
For instance, with 2-10 HBW’s Simply Kitchen plan, you could pay as little as $19 a month. If you chose to add options—such as roof leak coverage or washer and dryer coverage—the price would begin to rise. But that’s only because you’re getting more comprehensive coverage for the things that matter most to you.
Because your home and needs are unique, the best way to determine what a home warranty may cost is to get a quote. To provide competitive coverage and pricing, 2-10 HBW offers special sales and discounts to homeowners. For instance, when you choose to auto-renew your coverage with 2-10 HBW, we knock $60 off your coverage.
Is the cost of a home warranty worth it?
Yes. And if you’re thinking to yourself, “Of course a home warranty company is going to say it’s worth the money,” we get it. So let us break it down and show you why it’s worth it.
Take our Simply Kitchen plan as an example. Say you purchase this plan, without options, for $19 a month, which is $228 a year.
Then, while your coverage is active, your refrigerator breaks down. (Refrigerator breakdowns have been much more common among homeowners of late due to increased use.) On average, it costs $340 to repair a refrigerator breakdown and $1,250 to replace it (based on estimated average retail cost of repair/replacement and observed claims experiences of 2-10 HBW customers).
In this case, rather than having to pay $340 for a repair unexpectedly, upfront, and out of pocket, you pay a much smaller Service Fee (usually less than $100) to the contractor we vet and assign to your breakdown. Not only does your home warranty more than pay for itself but also it saves you the time and hassle of finding a trustworthy technician.
What’s a Service Fee?
A Service Fee is a relatively small payment you make to the contractor when you submit a service request. When you choose 2-10 HBW as your home warranty company, you’ll typically pay $100 or less to have a contractor service your breakdown. Then, 2-10 HBW covers the rest of repair or replacement cost, up to the clearly stated limits in your service contract.
Why do home warranty plans have limits?
Another big question that homeowners have is “Why are there limits on my coverage?”
Before we answer that, it’s important to know that all home warranty companies have coverage limits and exclusions. There is no such thing as limitless coverage. However, 2-10 HBW clearly states our limits and exclusions in each of our Service Agreements.
The biggest, simplest reason that limits exist is to provide the most robust coverage at a reasonable price. If home warranties were limitless, their price would be astronomical.
As you’ve seen, the cost to repair or replace systems and appliances can get very expensive for the average homeowner. 2-10 HBW helps you by having an extensive network of contractors. This network lets us leverage cost discounts on repairs and parts, often below wholesale price. And that’s how we can provide you affordable coverage at a fraction of the retail cost.
Am I likely to go over my limits or can I raise them?
If you’re like 95% of homeowners, you’ll be unlikely to exceed your limits. While it does sometimes happen, it’s generally a rare occurrence. We’ve designed our home warranty coverage to address the kinds of breakdowns that 95% of homeowners face. These limits protect the majority of homeowners from feeling the pain of unusually expensive claims other homeowners may face.
However, you can raise your limits in certain cases. 2-10 HBW provides you with an industry-exclusive opportunity to raise some of your limits through our Luxury Package. For more information about limits and how 2-10 HBW is the only home warranty company that lets you raise them, check out our comprehensive article on home warranty limits.
Doesn’t my manufacturer’s warranty do the same thing?
Manufacturer’s warranties are indeed similar to home warranties in some ways. However, a home warranty has several advantages over a manufacturer’s warranty.
The most obvious advantage a home warranty has is that it’s generally more flexible than a manufacturer’s warranty. A manufacturer’s warranty typically covers one specific item and is brand specific. However, a home warranty can cover several items and various brands. So right away, a home warranty gives you a wider range of coverage.
Second, because manufacturer’s warranties only cover one specific item, you’d need to purchase multiple extended warranties to keep them covered. With a home warranty, you can save money because it covers more things.
Third, manufacturer’s warranties aren’t always non-transferable, whereas a home warranty is transferable. That’s a big deal.
Say you buy a house that includes new appliances that the old owner purchased, and those appliances have a manufacturer’s warranty. If an appliance broke down after you bought it, the manufacturer’s warranty may not apply to you. It may only apply to the original purchaser.
On the other hand, a home warranty could cover that appliance breakdown regardless of who bought it.
For comprehensive protection, choose 2-10 HBW
We’ve gone through quite a bit of information about home warranties. To sum it all up, a home warranty from 2-10 HBW makes protecting your home simple and affordable.
- 2-10 HBW can help you reduce upfront, out-of-pocket costs when things break down from routine wear and tear.
- Our network of technicians makes finding the right person to call super easy, because we do it for you.
- You can request service, renew and review coverage, and access perks 24/7 through 2-10 HBW’s online Homeowner Portal.
Owning a home should be a good experience overall. But systems and appliances breakdowns can turn home ownership into a hair-tearing experience. With coverage from 2-10 HBW, you can trade your stress for smiles, knowing that the industry leader in warranty coverage is with you at every stage of your home ownership journey.
2-10 HBW offers the most comprehensive home warranty coverage for homeowners. Let us help you protect your home.