Home Warranties: Stress-free Homeownership in Uncertain Times
Little is more important to us than the need for a safe, comfortable place to live: a place we affectionately call home.
Unfortunately, homeownership doesn't come without its share of headaches, particularly when it comes to the financial aspect. From sudden leaks to unexpected electrical failures, inevitable home repair and maintenance costs can be significant.
Recent Market Developments in Home Warranties
Amid these challenges, the home warranty industry has experienced significant growth, garnering attention from homeowners seeking peace of mind against unexpected costs.
The home warranty service market—valued at $7.3 billion in 2020—projects to reach an estimated $13.6 billion by 2030, according to a recent report. The reason behind this growth? There are manifold benefits to having a home warranty plan.
A home warranty is a service that comes to the rescue for many homeowners by covering the cost of specific home repairs caused by circumstances such as issues stemming from poor construction quality.
Such services also cover the repair and replacement costs of appliances and systems like ACs, fans, and fittings that break down due to regular use.
The Home Warranty Procedure
When an appliance or system bites the dust, the homeowner contacts their home warranty provider, who collaborates with a relevant service provider—say, a plumbing or electrical contractor. The contractor then assesses the damage and submits a report to the home warranty company. If the policyholder's contract covers the failed unit for the reported damage, the contractor is employed to either repair or replace the system.
The Advantages of Home Warranty Services
Home warranties offer protection for appliances and home systems, shielding against damage or breakdowns. Additionally, policyholders benefit from free or low-cost services relative to out-of-pocket repairs. This knowledge has driven an increasing number of homeowners towards home warranty services to evade high repair and maintenance costs—driving the growth of the global market.
A Note of Caution
Despite these enticing benefits, it is critical to note that services come with terms and conditions. You may encounter hidden charges post-maintenance or post-repair. These policies are diverse, so it’s thus crucial to scrutinize the fine print before signing up.
The Future of the Home Warranty Market
With costs for home systems installation increasingly covered by home warranty services in emerging markets, there's a wealth of growth for this industry on the horizon.
Companies such as AFC Home Club, Cinch Home Services, and First American Home Warranty, among others, are rapidly expanding, promising better services to homeowners like you.
There's no denying homeownership can be a financial roller coaster. However, with the rise of the home warranty service market, homeowners have a safety net—making homeownership a less precarious endeavor.
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