The home warranty industry, like every field related to the real estate, has suffered greatly in the crisis of 2008. However, now it’s speeding up the road of not merely recovery but rapid growth. Arizona, in particular, is a state where home warranties are booming, and with good reason. This service might not be for everyone, but Arizona homeowners can benefit from it more than most.
The reasons for this are many. The most important ones are that there are more houses that apartments in Arizona and being a homeowner is never cheap. Every house today has quite a few systems and appliances, and the majority of those are rather expensive and new. As a result, they need protection in case of a breakdown because should those things fail, it can cost you thousands to get them fixed. With a home warranty, you can avoid such huge losses and the cost of a plan is only about $500 a year.
Homeowners all over the country are recognizing the benefits that this service offers, which you can see from the fact that their popularity is steadily growing. It’s proven by the 3.3% industry growth and the increase of its revenue to $2 billion in 2018 (IBISWorld).
This growth can be easily explained by the fact that people today use much more expensive appliances, which are rather expensive to fix. And even the best of those things need fixing eventually. It seems that the more sophisticated tech becomes, the more vulnerable it gets, and no device is perfect today. Being prepared can save a homeowner a large amount of money.
Home Warranties in Arizona: Why Are They Popular?
Considering that Arizona has a high number of homeowners and over 64% of properties in the state are rather large houses, it’s only reasonable that home warranties will be in demand here. In fact, the state is up at the top three when looking at the number of homeowners using these plans. It stands right next to Texas and Florida, other leading home warranty “destinations”.
You can easily see that Arizona is one of the most popular places for home warranties from a state-specific home warranty guide. It clearly shows that the majority of the top home warranty providers are available there. This includes First American, Choice, and Select to name a few.
Bear in mind that the home warranty market is extremely concentrated with the top 10 companies claiming about 80% of the total industry revenue. Therefore, the presence of such big names is reassuring, but it doesn’t mean that those are the only names you can trust. There are nearly 200 home warranty providers in the US today and more will definitely appear in the near future because the industry is growing.
This means that those who are looking to buy a home warranty should consider more than the provider’s years on the market and number of clients. The most important factor for these companies is their trustworthiness. Unfortunately, it’s a characteristic that many businesses in this industry are lacking because the industry itself is not well-regulated.
However, all home warranty providers in Arizona are regulated by the Arizona Department of Insurance. Therefore, as long as the company is accredited in the state, you can be reasonably sure of its reliability. Of course, this doesn’t mean that you shouldn’t research the company thoroughly and study multiple reviews and any complaints filed against it. In order to reap the benefits of a home warranty, one needs to choose it with extreme care.
Should You Invest in a Home Warranty in Arizona?
The opinions on whether one needs a home warranty vary greatly, which isn’t a surprise as this kind of service can be beneficial only in specific situations. However, if you do fit one of those, this plan will be a good investment.
People who can benefit the most from purchasing a home warranty plan are:
• Homeowners with new or recently upgraded properties.
Your contractor should provide a guarantee of some kind after completing upgrades, same as any new appliance you buy will have a manufacturer’s warranty. However, these types of coverage expire rather fast. Home warranty provides you with an opportunity to regain some measure of that protection.
• People who don’t want to spend lots of time looking for contractors and repair services.
A home warranty company serves as a single point of contact between the homeowner and all contractors involved in working on repair or maintenance for their gadgets and systems. So, basically, the owner of the plan only needs to make one call to get any issue fixed fast.
• Home sellers and real estate agents.
Buyers see home warranties as a reassurance because they prove the new homeowner will be covered in case of any big breakdown. Therefore, homes with these plans sell faster.
As quite a few Arizona residents fit these profiles it’s no wonder that home warranties are getting more popular here with every passing year. This situation isn’t likely to change as more and more homeowners upgrade their gadgets and properties, therefore, requiring protection for those upgrades.