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What to know about buying a home warranty in Maryland

What to know about buying a home warranty in Maryland

 

In the Old Line State, there are many home warranty coverage plans available to the homeowner. But prior to selecting a home warranty company, you should ask yourself, “What does this specific home warranty cover?”

A home warranty is a type of home protection plan that functions as an extended warranty for your home's critical systems and appliances. This extended warranty protects your home well beyond the manufacturer's warranty and can be purchased at any time, no matter the age of the home.

After you sign a yearly service agreement, you can put in a claim any time after a 30-day waiting period. After that, you'll be asked to pay a service fee of $100 to $150 for a visit from a repair technician sent by your service provider.

To help you better understand the warranty options available to you, we have compiled many of the most frequently asked questions about purchasing a home warranty in Maryland.

 

What types of properties should have a home warranty in Maryland?

A variety of properties in Maryland can benefit from a home warranty. Single-family home and multifamily units such as townhomes are eligible for home warranty coverage. A newly constructed home can also benefit greatly from a home warranty because a manufacturer's warranty is often limited and can be cumbersome.

Modular and manufactured homes should have a home warranty in Maryland. However, a mobile home with wheels cannot be covered by any home warranty company.

 

How much on average is a home warranty in Maryland, and why?

The average cost for a home warranty in Maryland is $420 to $745 a year. While you can select a less expensive basic plan, most homeowners choose a home warranty plan that covers air conditioning, along with the heating system and the plumbing system.

Optional coverage for spas, pools and septic tanks can also be added to your Maryland home warranty plan.

Whatever type of protection plan you choose, you will need to pay a deductible for every visit by a repair technician. Home warranty deductibles range from $100 to $150 and can impact the monthly plan price. If you plan to use the warranty coverage more than twice annually, you are likely better off selecting a lower deductible to save money.

 

Who will benefit most from having a home warranty in Maryland?

Any homeowner who cannot afford to have a large out-of-pocket expense will benefit from having a Maryland home warranty. The repair and replacement cost for a major appliance or system such as an HVAC can be expensive. Even the replacement price for a water heater can be $1,000 to $3,000.

While many people who purchase a newer home may believe they have limited risk, they don't always understand the limitations of a manufacturer's warranty or homeowners insurance. Home insurance generally covers loss related to theft, fire or extreme weather, but it doesn't cover normal wear for an appliance or system. And while a manufacturer's warranty may provide great coverage, that coverage is usually limited to one year.

A home warranty plan can complement your home insurance by giving additional coverage for everyday use of items like your garbage disposal, air conditioner, or oven.

 

How comprehensive should a home warranty in Maryland be?

Your Maryland home warranty should be as comprehensive as you desire. If your budget is limited, a basic plan will help you get warranty coverage that gives you some peace of mind. But if your house is more than 20 years old and has older appliances and systems, the price of a protection plan can pay for itself. The last thing you want is a $3,000 air-conditioner replacement when you could have mitigated your risk for $15 per month.

 

How can you determine the best home warranty provider for your Maryland home?

The best home warranty provider for your Maryland home is the one that keeps helping to match your needs to their service. As always, reviewing your homeowners insurance policy is prudent, as is understanding your structural warranty on a new home, if applicable. 

Home insurance can supplement home warranty coverage by protecting your home from events related to theft, fire or extreme weather. A home warranty plan differs in that it is protecting you against unknown risks related to normal daily use. 

A structural warranty, often referred to as a 2-10 warranty, covers the load-bearing structures within your home for a period of 10 years. Repairs and replacements due to normal wear and tear would not be covered under your structural warranty. 

The best home protection plan for you will be with a provider that offers great customer service along with the home warranty coverage you need. Your service agreement will specify the service fee, coverage details, and any exclusions and coverage caps. 

Get a free quote from Cinch Home Services.

 

A variety of homes in Maryland can benefit from a home warranty. Single-family homes and multifamily units are eligible. Visit the Cinch site to learn more.