That home insurance policy you're carrying doesn't cover you when your air conditioning system decides to blow in the middle of summer, or a major kitchen appliance breaks down out of nowhere.

But a home warranty likely would — you just have to put out more money in order to count on that protection.

A new analysis from House Method, a home services researcher, finds the average annual cost of a home warranty is $670 in New Jersey, or a little more than $55 per month. House Method found that the average annual premium ranges from $600 up to $800 across the 50 states.

"Most service providers in New Jersey offer both monthly and annual payment options, so you can choose at sign-up," said Meredith Kucik, home warranty expert with House Method.

The difference in coverage between home insurance and a home warranty is relatively simple: a warranty covers breakdowns due to normal wear and tear, while an insurance policy handles costs related to catastrophes such as fire or damaging wind and rain, as well as theft.

According to Kucik, home warranties are most commonly purchased as part of a real-estate transaction — a seller will include a policy as an incentive for buyers, for example — but homeowners have the option to take on a warranty at any time.

"Some providers do require an initial home inspection to make sure that everything is in working order before you enroll," Kucik said.

According to House Method, home warranties can save homeowners thousands of dollars, in the event of a major breakdown in one's home. For example, replacement of an HVAC system can cost $5,000 to $10,000.

But you want to do your research before making a warranty purchase — there are deductibles to consider, as well as service fees for each claim made. Also, providers may cap how much money a customer can be awarded per item.

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Source: nj1015.com