Strategic Partnerships to Offer Widespread Home Warranty Services
13 Jun 2022
While buying a home, even if it isn't brand new, there's a strong chance the customer will be provided a home warranty as protection against costly, unexpected repairs. It may appear to be an excellent source of financial security, but is it truly the safety net that homeowners expect?
A home warranty is a service agreement that covers the cost of maintaining the property or equipment for a set period. The home warranty service provides coverage for household systems and appliances, as well as repairs and replacements.
A home warranty, just like all warranties, is intended to safeguard homeowners from costly, unexpected repair expenditures and provide them peace of mind. A home warranty service can act as a buffer for a homeowner who doesn't have an emergency fund or wishes to save it for something else.
The coverage of expensive appliances such as refrigerators, ventilation, heating, and air conditioning (HVAC) systems, ovens, plumbing, dishwashers, cooktops, and electrical systems is driving the expansion of the global home warranty service industry. This aids in the regular maintenance and service of household appliances and systems.
Furthermore, in tire 2 and tier 3 cities, increased awareness of warranty services is fueling the market growth. As a result of this increased awareness, numerous people are signing up for home warranty services from service providers. According to Allied Market Research, the global home warranty service market is anticipated to grow at a significant CAGR of 6.3% from 2021 to 2030. A rise in the expenditure of home services in developing nations such as India, China, and Brazil are expected to provide new opportunities for the home warranty service market in the coming years.
Following the growing market trend, leading home warranty service providers are adopting strategic partnerships for their geographic expansion. A few months ago, Super, an insurtech business that offers home subscription care, announced a widespread collaboration with HomeSmart. In all locations where Super is accessible, including recently added Atlanta and Charlotte, Super will now be the home warranty partner for HomeSmart real estate agents and brokers.
Another couple of firms joined hands to offer improved home warranty services across the board. Cinch Home Services (Cinch), the leading home services provider, also announced a new alliance with HomeSmart, one of the largest real estate brokerage companies. Under this partnership, Cinch will deliver its award-winning warranty coverage and services to HomeSmart's brokers, franchise partners, and above 23,000 agents in 37 states and 199 locations around the country as a national partner.
The outbreak of the Covid-19 pandemic severely affected the manufacturing, construction, tourism, and hotel industries. Transportation and construction activities, and their supply networks, were disrupted on a global scale. This resulted in a decrease in the manufacturing of home warranty services and their potential market, thus limiting the market's growth. However, as the world is getting back to normalcy, industries are progressively resuming normal manufacturing and service operations. This is predicted to result in home warranty service providers resuming their operations at full capacity, allowing the home warranty service market to recover soon.
Chief editor of review team at FinancesOnline
Chief editor of review team at FinancesOnline Alex Hillsberg is an expert in the area of B2B and SaaS related products. He has worked for several B2B startups in the past and gathered a lot of first hand knowledge about the industry during that time.