Home warranties offer consumers the chance to safeguard the expensive, essential systems and appliances within their homes. These policies can be taken out on new homes, purchased for an existing home, or added before a sale to sweeten the pot and make the property more attractive to potential homebuyers. However, one thing that consumers and home sellers will find is that Texas is home to an incredible range of home warranty companies. Why is this and how did Texas become such a popular choice for company location? Are home warranties popular, and which ones are recommended for Texas users?
The Best Place for Businesses
The choice to locate a company in Texas makes a lot of sense. The Lone Star State is one of the most business-friendly in the nation, coming in behind only Virginia in CNBC’s annual list of the Top States for Business, published in July 2019. The list ranks the 10 best states based on a wide range of factors, including:
- Overall economy
- Access to capital
- Age, education, and availability of workforce
- Quality of life
- Cost of doing business
- Economic growth
- Current unemployment rate
The state performed admirably in all of these areas, and more, and has never ranked outside the top five since the list’s inception. The only reason that Texas did not rank first in the 2019 list is the rise in energy prices. This certainly makes it an attractive location for businesses of all types, including home warranty companies.
Are Home Warranties Actually Popular?
In a nutshell, yes, home warranties are popular with consumers and becoming more so. As the price of major home appliances rises and we see ongoing spikes in the cost to install or repair those systems, consumers realize they need more protection than what is usually offered. To understand the value and popularity of home warranties, we need to explore how they work.
What’s Covered: Home warranties can cover a very wide range of items. While the full list will vary from warranty provider to warranty provider, some of the most commonly covered items include the following:
- Air conditioner
- HVAC ductwork
- Oven and stovetop
- Washer and dryer
- Electrical system
- Water heater
- Garage door and opener
In addition to standard covered items, consumers can also add optional items to get customized protection. For instance, inground and aboveground pools can usually be added, as can coverage for things like central vacuum cleaners, well pumps, and much more.
Delivering Value: No consumer wants to spend money on something that doesn’t offer them value or that they will never use. With home warranties, you benefit in many ways, including having peace of mind in knowing that if something goes wrong with a covered appliance or system, a single phone call is all that’s needed to handle the situation.
However, home warranties can deliver value in other ways, as well. For instance, if a consumer decides to use a home as a rental, the warranty can offer value to them and their renters. When a consumer puts a home on the market for sale, the warranty can be transferred to the buyer, offering a way to set the home apart from other options on the market. First-time homeowners get important coverage on things they may not know how to handle. The list goes on, but suffice to say that home warranties are popular with consumers, and that popularity is growing as more people realize the need for additional protection.
Choosing the Right Home Warranty Company
Of course, while Texas is home to more home warranty companies than other states, that does not mean they are all the same. Consumers must be able to make an informed decision with their policy purchase. This requires being able to compare warranty companies, their offerings, their pros and cons, deductible amounts, coverage costs, BBB rating, plan selections, optional covered items, and more.
Ultimately, Texas is one of the best states in the country for businesses. From tax benefits to available workforce, the environment attracts all sectors, including home warranty companies. However, consumers must still compare their options closely to ensure they receive the right level of coverage for the right price.