Consider Getting Home Warranty
As a homeowner, you just never know when you will face unexpected and costly repairs for your home. A home warranty can sound like a great solution to this dilemma, but is it really worth it?
Home warranties have gotten a bad rap in the past, but like any warranty or insurance policy; the upfront cost could be worth it in the end. However, you do need to read the fine print and understand any of the terms and conditions!
Read this article to learn more about the pros and cons of home warranties is worth it and fit your budget.
What is a home warranty?
It is a policy where your home’s main systems or appliances will be covered for repair work. it is usually purchased through a home warranty company.
A home warranty is different from your homeowner’s insurance or a manufacturer’s warranty on a product. For example:
It will cover the labor to fix a failed part on a product that your manufacturer’s warranty doesn’t.
It will pay for the plumber to fix a broken pipe but not the damage to your home, which your insurance policy should cover.
You can see that it can work hand-in-hand with other home policies when something goes wrong. It is extra protection.
It is important to keep in mind that a home warranty is different than home insurance. It’s similar to how car insurance and car warranty cover different items. Home insurance, like car insurance, covers unforeseen damages, where a warranty just fixes things that break earlier than they should have.
What are the typical home systems covered and yearly cost?
Policies typically include air conditioning, heating systems, water heater, furnace, plumbing, and any built-in appliances, such as refrigerator. You can always add “extras”, such as a swimming pool system to your plan. An understanding of these additional costs that you will have to pay can be helpful if your budget.
Who can purchase a home warranty?
Warranty companies are all different. Some will allow a hometown that has been in their home for many years to buy a plan. This is a great improvement since previously home warranties could only be purchased by new buyers at the time of settlement.
What do consumers, like you, need to know before the purchase.
As I have said before, it is very important to read over the fine print of your contract and understand what is covered and what is excluded from your plan. Here are some typical actions to be aware of standard packages:
Covers repairs on large systems (heating and/pr air conditioning) but it does not always cover replacements. Typically, it will help you keep appliances functioning and in working order.
It won’t cover if breakage is due to poor maintenance by the homeowner. This typically covers the “normal wear and tear” of an item.
Excludes certain items — i.e., may cover refrigerator repairs but not the ice maker
Doesn’t cover items once they reach a certain time period or beyond their service life. This is usually after 20+ years.
It doesn’t cover pre-existing conditions. This means items need to be properly installed, maintained, and are in good working condition when you apply for coverage.
It doesn’t typically cover roofs and exterior items.
What happens when I need to have something repaired?
A home warranty company requires you to contact them first when something breaks. The warranty company will then contact their service providers to send it to your home. Once the claim is approved, the company will pay the provider.
If you call the service provider without contacting the warranty company first, it may not be covered. Again, just make sure you triple check this.
You may not be able to control who can come to your home and repair an appliance or major system. This can be a major downside to some homeowners. This process can also increase the time of repair.
If your furnace breaks down during the winter or cold spell, you will have to wait.
What if something is not covered when I thought it was?
Like any warranty for any other type of purchase, they are times the warranty company can choose not to cover something. That’s is why I suggest you need to read the fine print carefully!
What should I look for in a home warranty company?
It is important to find a reputable company that is highly recommended by others.
Investigate its long-term history and Better Business Bureau information.
Don’t just settle for one company at first! Compare coverage levels and upgrades to standard packages along with deductibles and service fees.
Read the fine print in the contract to understand any co-pays and exclusions.
Understand how you can cancel or renew the contract.
Let me know if you have any questions about the home warranty whether you are a current homeowner or a new buyer. Simply click here to email me!