Guide to Home Warranties: Covering Your Oklahoma Home Repair Costs

You think you’ve checked all the boxes when it comes to understanding the cost of buying a home.

You’re certain you can manage your mortgage principal and interest payments every month.

You’ve budgeted for property taxes. You’ve hired a professional home inspector to discover any construction or mechanical system problems in your property so there won’t be any unexpected surprises down the road.

But as every seasoned homeowner will tell you, there are always costly surprises. Some minor, some major, but all worthy of consideration when you budget for the maintenance of your home. 

Experts suggest that homeowners set aside between 1% and 3% of the purchase price of their homes to cover for repairs.

That can add up to a tidy sum. And that’s one reason many homeowners choose to invest in a home warranty—a product that can help you budget effortlessly for home repairs and protect large, unexpected maintenance expenses. 

What Is a Home Warranty?

Let’s begin with what they are not.

Basically, a home warranty isn’t an insurance policy. It’s a contract between a homeowner and a home warranty company.

Home warranties aren’t subject to the same regulations that govern the insurance industry, for example. But home warranties do share some features with insurance policies that you’ll recognize.

You’ll pay a monthly premium for home warranty coverage. If you make a home warranty claim, you’ll pay an out-of-pocket deductible for each service call required to fix your maintenance problem.

Your coverage will have pre-determined coverage limits and exclusions. In short, home warranties are fairly complicated instruments and you should be sure you understand all of the provisions of any warranty you’re considering purchasing.

Home Warranty Coverage Basics

Most home warranty companies provide two types of protection: system coverage and appliance coverage.

When your shower starts leaking unexpectedly and you need to call a plumber or your central air fails in the dog days of summer and you need an HVAC contractor pronto, system coverage kicks in.

If the self-cleaning feature of your oven is on the fritz, that repair would be covered under the appliance segment of your warranty. Most home warranty companies give consumers the choice of carrying one type or even both types of protection.

The best home warranty companies permit you to customize your plan to a degree.

You can select both system and appliance coverage or one or the other. Some homes include less common amenities than others.

For example, not all homes have a pool, jacuzzi, or trash compactor. But for the ones that do, home warranty companies usually offer riders to cover these specific items—another term you may be familiar with if you’ve purchased homeowners insurance before. 

Do Home Warranties Have a Deductible?

Similar to insurance, most service calls on a home warranty program include a base deductible that you will pay. The deductible is also referred to as a service fee. The service fee could be a set price, or could be a range depending on what type of plan you select.

For homes that have aging appliances, this could be worth the cost. Compare plans to fully understand what your fee will be each time you request a service call.

Choosing the Best Home Warranty for Your Home

The best advice we can give you is to shop around.

Home warranty costs and coverage varies by company.

Take the time to compare contracts and find the best value, bearing in mind that the cheapest policy isn’t necessarily your best choice.

Then consider your home features. If you live in a newly constructed home, all of your systems and appliances are brand new and under factory warranty. A home warranty may not be worth the cost until your manufacturer and construction warranties expire. 

It’s also a smart idea to get online and visit such sites as Trustpilot and the Better Business Bureau.

See what other customers are saying about the company you’re considering doing business with. Read any consumer complaints registered on those sites and avoid companies that are unfavorably rated or rack up a ton of negative comments.

Home Warranty Q & A

The home warranty industry gets a bad rap sometimes.

Customers complain about frequently denied claims or having to pay multiple deductibles for the same problem when the first service call doesn’t fix a problem.

Some complaints arise from homeowners not understanding the details of their contracts. So be sure you know what you’re getting into before signing a contract.

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Are Home Warranties Worth It?

A home warranty is like an insurance policy in one more crucial way.

You purchase it to hedge against large expenses.

If you live in an older home or your appliances are showing some wear-and-tear, you’re more likely to use your home warranty frequently. But you may never make a claim and, if that’s the case, you may feel like you spent money on something you didn’t need.

But home warranties, like insurance policies, do provide peace of mind. That’s a significant part of their value. 

Advice for New Homeowners

Realtors often encourage home sellers to include up to a year of home warranty coverage to homebuyers.

Some home sellers do so to reassure buyers that they’re purchasing a solid home and their first year’s maintenance expenses won’t be overwhelming.

If a seller doesn’t proactively offer a home warranty, consider including home warranty coverage in your purchase and sale agreement. 

If your home requires maintenance that’s covered under a seller-provided warranty, see how satisfied you are with the service you get.

If you’re unhappy with it, you’ve learned something. If you decide to continue to pay for coverage, you can select a different home warranty company. You’ll have learned something along with the experience and are better equipped to make an educated choice.