A service contract covering the repair or replacement of major home systems and appliances due to normal wear and tear is a valuable tool for landlords. For example, coverage might include a malfunctioning refrigerator, a broken water heater, or a faulty heating system. This type of agreement helps protect property owners from unexpected and often costly repair bills.
Such agreements offer significant financial protection and peace of mind. By mitigating the risk of large repair expenses, long-term budgeting becomes more predictable. This stability is particularly beneficial in the rental market, where property maintenance is an ongoing responsibility. Historically, these service contracts have evolved alongside the growing complexity of home systems, providing an increasingly relevant safeguard against unforeseen breakdowns.