Getting Home Appliance Insurance – Why You Need This Kind Of Warranty

It was the height of summer, with sweat rolling off me like someone had just dumped water all over my body, I knew things had reached a breaking point. The air conditioner went out and there was nothing I could do about it. It was just days before that I had thrown a party with everyone showering me in compliments.

This was my first home I had ever bought and I was just happy to be a homeowner. Little did I know how truly hard it is to get through in the DEEP south without a working air conditioner.

Getting Contents Insurance
Getting Contents Insurance

So what actually happened to my air conditioner?

The heat pump compressor on the unit failed, leaving me with an air conditioning unit that refused to work. The total cost to get it fixed was about $1,500 dollars. What a catastrophe! Keep in mind that this happened over 15 years ago. The same heat pump of today costs nearly $5,000! 16 SEER systems take a lot of money if you need to repair them.

Who should get home warranty coverage?

The fact of the matter is this. If I would have purchased home warranty coverage, it would have only cost me around $200 out of pocket. So I learned a valuable lesson, and every home that I have bought from that time on has had home warranty coverage. If you do the math, it’s really as simple as taking action and getting the coverage.

Does everyone need it?

No. As a matter of fact, people with newly built homes don’t need this type of insurance at all. They are already covered under a contractors guarantee. These agreements aren’t just a handshake type deal, they’re actually governed by U.S. law to protect consumers from faulty workmanship. But if your home is nearly 20 years old like mine was, then home warranty coverage makes perfect sense.

What’s my point?

The point is, buying home warranty coverage for an aging home is one of the best things you can do to save a few thousand dollars. You may not always need to use it, and that’s what insurance companies count on. But when and if you need the policy coverage to take effect you can get building and contents insurance!