Your Complete Guide to Understanding Home Warranties

Sep 23, 2022

Home emergencies happen, and there is no exception. Anyone who’s had their AC bust in the heart of summer knows that trouble can arrive at the worst of times. While you cannot stop bad things from happening, you can be prepared for the worst with a home warranty. From your water heater to your refrigerator, you can put a policy in place and ensure that help is just a phone call away.

  1. “I have home insurance, why do I need a home warranty too?”

A home warranty isn’t the same as homeowner’s insurance. While they both cover home repair costs, they couldn’t be more night and day in the coverage that they provide. First, homeowner’s insurance covers catastrophes like fire, earthquakes, and burst water pipes. Meanwhile, a home warranty covers the repair and replacement of internal systems in your home such as: electrical, HVAC, plumbing, water heater, and other appliances

  1. “What does it mean when they say that home warranties cover your home’s main systems?”

Your warranty varies by plan coverage. Just like your homeowners’ insurance policies, home warranties come with rules and restrictions. It’s up to you to read your policy options carefully and select what is best for your home.

  1. “Do we need to play up the home warranties I have when selling my home?”

No, when selling, you don’t need to emphasize a home warranty, but it will come in handy later. Home warranties can play a key role, especially in hot markets. Not only will they provide you with protection should anything break before your home sale closes, they can be a powerful tool to use during negotiations once you’ve accepted an offer. After all, having a home warranty will give the buyer peace of mind. Should anything go wrong with the warrantied appliance after making their major life purchase – the new home – the home warranty will cover the bulk of the expenses. That could be just what you need to convert someone on the edge to become a buyer, since they don’t want to incur any additional unexpected expenses so close to the home purchase.

  1. “What does it cost for a home warranty?”

Most home warranties are typically 12-month contracts that cost between $500-$850 per year. More expensive plans can cost up to $1,700 annually. Additionally, you will be required to pay a service fee of approximately $60- $135 each time you call a contractor to come to make any repairs (this fee is nominal when you compare it to hiring an experienced contractor, plumber, or electrician).

Tip: Since service fees are per visit, it’s smart to have a list created of all issues that need attention in one go. Most home warranties send out contractors who can service multiple areas of the home.

Should you have any questions about home warranties, their role in the marketing of a home, or anything else regarding the home selling or buying process – or even need a referral to help with your home maintenance needs – please feel free to reach out to the Jackie Mack & More team. We’re here to help make your home selling or home buying as painless and stress free as possible. We look forward to the opportunity to serve you.

Explore other media:

  • videos

  • issuu

  • other media

Blog Links:

Everything Evanston:

How to Have a Heavanston Halloween in ‘23

While Evanston may be known for its beautiful lots and breathtaking lake views, dubbing the city “Heavanston” all year round, don’t forget about Halloween. During the month of October, the city truly prepares for the fun, spooky season. Evanston’s official...

Your Complete Guide to Outdoor Dining Options in Evanston

Many local residents have long enjoyed al fresco dining while others in the area might have discovered the joys of it more recently, but all can agree that visiting an open-air establishment can create a truly unique and relaxing change of pace. It’s no wonder that...

An Insider’s Guide to Farmers’ Markets in Evanston

There’s nothing better than the great taste of nutritious, straight-from-the-farm fruits, vegetables, eggs, and meats as well as fresh baked breads and pastries.  And with the many farmers’ markets in Evanston, it’s easy to get them – as well as lovingly made, small...

Your Comprehensive Guide to Your Daycare Options in Evanston

We’re proud of Evanston’s A+ schools. This pride extends to those who serve our youngest citizens, which is why we’re proud of our extensive list of local daycare options. After all, before our children are even ready for preschool school, they progress through...

Everything Home Selling:

This Storage Guide Can Help You Sell Your Home Faster

When you are looking to buy a new home, you want to walk through the house or condo and be to visualize yourself inside it. You think about where your things will go, and how you’ll decorate it. In other words, you want to see if it “feels like home.” The same goes...

Is Your First Offer Really Your Best Offer?

There is a saying in real estate you may have already picked up on: Your first offer is your best offer!  So, what is it? Well, just like most things in life: There’s not a clear answer, but the saying is often true. To best understand how to answer the question, we...

Why You Should Get a Pre-Listing Inspection

Isn’t it the buyer's responsibility to get inspections?  The answer is both “yes” and “it’s nuanced.” Responsible buyers are going to want an inspection. They need to check their potential new home for safety issues, foundational/structural problems, hidden...

Everything Home Buying:

What is Fannie Mae & Freddie Mac and How Do They Work?

You may have heard of Fannie Mae and Freddie Mac before. Perhaps you even have a general understanding of them or just associate these terms with owning a home. But what are they? What do they actually do? And why you, as a homebuyer, should care? According to the...

Buying a Condo? You Might Want to Consider a Co-Op Instead

There are many benefits to living in a condo: They often require less maintenance than single-family homes, as the condo association often maintains the common interior and exterior areas. As a result, condos can often offer more flexibility than single family homes...

How to Move with Pets

Moving into a new home isn’t just stressful for you, it’s stressful for your pets too – especially for cats and dogs. But while moving with pets can be daunting, we at Jackie Mack & More have some tips and tricks to help ensure that your move goes smoothly for...

Everything Home Maintenance:

Creating a Stylish and Functional Home Office

With the post-covid opportunity to continue working remotely at least part of the time, having a dedicated home office has become a necessity. A simple desk and chair won't cut it. Your home office should be comfortable and inspiring, so you can be productive.  Here...

Key Considerations Before Adding Solar Panels

Did you know that by using solar energy, you can increase your home value while lowering your energy bills? In fact, according to the Department of Energy, solar panels boosts a home’s value by an average of $15,000 – while lowering overall electric bills even with...

Do I Have Mold in My Attic?

I often get asked, “Do I have mold in my attic?” The answer: Yes, everyone has some level of it in their attic! This is normal. In fact, I’ve seen it in virtually every attic I have inspected in the past decade since I became president of Chicago Green Insulation. ...