Do You Need a Home Warranty?


Many home owners struggle with the decision of purchasing a home warranty plan. You’re probably already paying a mortgage, and likely utilities too. So it’s understandable if adding another monthly payment is unappealing. But investing in the safety of your home with a home warranty could make a huge difference in your family’s financial security and peace of mind.

Consider your appliances
When considering a home warranty, it’s important to first think about your systems and appliances. How long has your washing machine been washing and your air conditioner cooling? You may be surprised that decades of use aren’t necessarily required before a breakdown occurs. According to the Huffington Post, 25 percent of front-loading washing machines and 20 percent of dishwashers break within three to four years.

While home insurance will typically cover appliances in the case of theft, fire or other disasters, they will not cover problems caused by normal wear from use over time. If your appliances are several years old or get a lot of use, a warranty could be a critical investment.

Consider your finances
While new appliances are less likely to break down or have problems, you can’t predict just when you’ll run into problems. So whether your home and systems are old or new, it’s important to consider your finances. While a monthly fee may be unappealing, did you know that the San Francisco Chronicle reported that in 2013 the cost of a new gas furnace was anywhere from $1,700 to $12,500? Or that Consumer Reports magazine reported in 2010 that tests showed that top-loading washing machines that cost less than $500 don’t wash well? That means you’ll be looking at a bill of more than $500 to replace your model if it breaks. If you’re at a financial position where you can’t afford that kind of lump sum payment, you might want to give a warranty some serious thought. Chicago Now reported that if one of these major repairs would break the bank, you should probably consider purchasing a home warranty.

Consider HMS
When it comes to home warranties, you want to work with a company that you can trust. With a plan from HMS, you’ll know up front just what your warranty does and does not cover. They can help you choose an affordable plan that will protect your family and your home from problems and failures with your major systems and appliances.

Brought to you by HMS Home Warranty.  HMS is an industry leader with over 30 years of creating success for clients and providing peace of mind for customers.  To learn more click

Which Homes Are Covered – And Which Ones Aren’t – Under an HMS Home Warranty?

Construction tools
There were nearly 5 million homes sold in the U.S. in 2014, according to the National Association of Realtors. That’s a lot of homebuyers, all getting settled in their new homes, figuring out what they love and what needs to be replaced – and, most importantly, planning out their future expenses and new household budget.

Home warranty plans provide a fantastic strategy to offset the costs of repairs and replacements of major systems and appliances. However, not all homes are eligible for coverage by home warranties:

  1. Seller Home Warranty – Available for the duration of a listing, until the property is sold.
  2. Buyer Conversion Warranty – Once the property is sold, Seller Home Warranties convert to a Buyer Home Warranty for one year from the day of closing..
  3. Buyer Direct Warranty – Purchased by a homebuyer upon closing.
  4. New Home Warranty – Purchased by homeowner upon completion of new construction.
  5. Open Direct Warranty – Purchased by homeowner not buying or selling the property.

Which properties are eligible for coverage?
It helps to know these five types of home warranties to understand which homes are covered under each agreement.

Typically single-family residential homes are eligible for coverage under each type of home warranty. Commercial properties and single-family homes with certain home-based businesses, including day cares, group homes and fraternity houses, are not eligible. One exception is any property housing persons with mental and physical disabilities.

The following are examples of properties that are not eligible for coverage under the HMS Home Warranty plan:

  • Non-owner-occupied multi-family units
  • Homes listed in a historical register
  • Mobile homes built more than 10 years prior to the effective date of the home warranty
  • Multi-family homes under the New Home Warranty
  • Tenant-occupied units under the Seller Home Warranty

In any owner-occupied multi-family residence, any claims in tenant-occupied units are the responsibility of the owner.

The systems and appliances in the home all have a typical life span which seems to get shorter year after year. Home warranties provide homeowners with the ability to better manage the household budget and prepare for the unexpected expenses when breakdowns occur.

Brought to you by our preferred Partner, HMS Home Warranty.  HMS is an industry leader with over 30 years of creating success for clients and providing peace of mind for customers. To learn more click