Although nearly two-thirds of customers (62 percent) considered the guarantees to be valuable, and while more than half of consumers (57 percent) said their warranty helped them last year, only 47% of consumers buy extended warranties. You can probably guess why sellers try so hard. They usually cost around 20 percent of the purchase price and can cost even more.
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What does a home warranty policy protect against?
Home warranties are designed to protect your home's appliances and systems from breakdowns caused by normal wear and tear. Home insurance pays for damage and losses caused by unexpected events, such as fire and weather damage, but it won't do any good if the washing machine breaks down.
What is the purpose of a home warranty?
A home warranty is a service contract designed to protect homeowners from unexpected repair or replacement costs associated with major systems and appliances in their homes. Unlike homeowners insurance, which typically covers damage from natural disasters, theft, or accidents, a home warranty focuses on the wear and tear of key components like plumbing, electrical systems, HVAC units, and essential appliances.
Why should you never buy the extended warranty?
But it's not really free if you paid more for it. Extended warranties are too expensive and add up quickly.
Which of the following problems would be covered by a home warranty?
The home warranty covers a home's systems and appliances that don't work due to normal wear and tear. Systems and appliances have a lifespan: unfortunately, they break down, wear out and stop working.
