by 
Home warranties offer peace of mind, financial security, and access to professional service providers; however, they often come with restrictions and exclusions as well as premiums and service fees that accrue each month. One way of investing these payments for future use could be with an interest-bearing savings account.
However, for many homeowners home protection plans are an investment worth making. In this article, we explore home warranty facts to help you decide if a policy would suit you or not.
Page Contents
Cost
As with any major purchase, conducting your research before buying is of vital importance when buying your first house or upgrading.
Consider price, coverage, and terms carefully as well as any potential risks related to a warranty policy; having such coverage can help alleviate some of the stress and financial burden new homeowners experience when appliances and systems break down unexpectedly.
However, it’s essential to keep in mind that a home warranty differs significantly from insurance. Whereas insurance typically provides damage and cost coverage, warranties cover repair and replacement costs instead.
Although each of these types of products has distinct differences from one another, both require monthly premium payments in exchange for filing claims with service contractors on call when needed.
The cost of home warranties depends on several factors, including company, plan, and add-on selections. Many companies provide several plans with various add-on protections; it’s wise to compare costs before making a decision.
Monthly premium payments usually range between $25-50 while service fee fees typically run about $100 depending on which company provides it.
Consideration should also be given to the size of the house itself; square footage won’t make much of an impactful statement about price unless it is brand new, while detached structures such as garages or guest houses typically don’t feature in most coverage plans unless added for an additional fee.
Some companies allow consumers to select the level and service fee that works best for them, while others take a more stringent approach. Although making decisions may be challenging at times, taking time to read each contract carefully before making your purchase is worth your while.
Home warranties can be invaluable to both new buyers and sellers alike, offering protection from repair and replacement costs while providing peace of mind that their investments are safe.
When evaluating the value of home warranties, it’s crucial to explore the facts and insights provided in our article, shedding light on whether they are worth the investment.
Coverage
Home warranty companies offer several plans designed to cover appliances and systems in your house as well as outdoor structures like pools or sheds.
It should also cover costs associated with items breaking down due to normal wear and tear; however, natural disasters, theft, or vandalism damage isn’t covered – that’s what homeowners insurance is for.
As you compare warranty providers, make sure they cover everything you require. A simple way of doing this is by examining sample contracts and reading through the fine print; look for information such as annual coverage caps, excluded items lists, claims processes, and customer reviews before making your selection.
Finally, compare add-ons available by each provider before selecting a provider. Once you’ve selected a plan, contact the home warranty company to report a problem.
Most have phone numbers or websites for customers to submit service requests online; otherwise, a technician will come directly to your house and repair or replace any appliance or system at an agreed-upon service fee, while some simply cover repair or replacement costs entirely.
Home warranties may seem costly at first, but they’re an invaluable investment that could save you thousands over time by preventing costly repairs that require you to tap into emergency savings account funds for repair.
Furthermore, having one can give you peace of mind knowing your appliances and systems will be covered should something go wrong in your home.
Note that warranties don’t provide coverage for maintenance, upkeep, and inspection of appliances and systems, preexisting conditions, or failures caused by misuse or poor maintenance practices – in other words, they’re no replacement for regular professional inspection by an electrician or plumber.
Exclusions
Home warranties can serve to safeguard homeowners against expensive repair bills.
They provide peace of mind to those without enough savings or the ability to create an emergency savings account who would otherwise spend their cash on expensive repairs; or those hoping to avoid purchasing expensive appliances or systems that will break down after extended use.
However, homeowners must remember several key considerations before considering a home warranty plan.
One of the chief complaints about home warranties is their limited scope; certain issues that fall under homeowners insurance policies are considered unnecessary or excessive, were caused by anything other than normal wear and tear, or were not reported within a specified timeframe.
Some items that are typically excluded from a house warranty plan include swimming pools, outdoor sprinkler systems, porches, and decks, as well as appliances or systems considered commercial grade by certain companies.
Furthermore, many home warranty plans also exclude damage caused by exterior walls or foundations shifting due to windstorms or leaky roofs, or roof leakage issues due to water escaping out through roof vents or drains.
People should read their home warranty contracts carefully to fully comprehend their specifics. A sample contract may be available online or they can contact customer service to get more details.
Ideally, these contracts will outline standard coverage plans, add-on options available, and any exclusions or conditions of coverage that exist within.
One important consideration when looking into home warranty companies is that many require their homeowners to work with contractors they select, while typically not covering the installation of new appliances or systems.
This may present problems for some homeowners who prefer specific contractors or appliances over what is offered through warranties.
Homeowners who believe their home warranty company denied their claim unfairly can appeal the decision by following the guidelines outlined in their contract and providing documentation and records as prescribed. If their provider still denies them access to coverage, they may file a formal complaint with the Better Business Bureau.
While delving into important home warranty facts, homeowners can also explore the advantages and benefits of integrating home solar panels for a brighter future, as discussed in our related article.
Requirements
Before settling on a home warranty plan, be sure to read its contract carefully. This should outline what will and won’t be covered as well as any limitations or actions that void it and other key points.
In addition, do your research about the company – consumer reviews, government websites, and BBB ratings can all provide information that helps determine its reputation and the coverage that’s offered. Many home warranty providers also provide sample contracts which give a better indication of coverage available.
Home warranties can provide valuable peace of mind to individuals looking to safeguard themselves against expensive repairs that arise unexpectedly, such as roof leakage.
They’re especially helpful for new homebuyers without experience in maintaining or dealing with contractors – plus it gives new homeowners confidence that all their systems and appliances have been maintained or constructed well enough.
Warranties are offered by companies specializing in the repair or replacement of appliances and systems, typically offering plans that cover major appliances like stoves, refrigerators, dishwashers, water heaters, and air conditioners as well as some electrical or plumbing issues.
They may even include major structural components like load-bearing walls roof framing masonry arches and columns as covered items under their warranties.
Costs associated with home warranties depend on their coverage and duration; some plans last only one year while others extend out up to ten. Certain plans may even exclude certain items like high-end appliances and outdoor kitchens from coverage altogether or contain clauses that favor warranty providers over homeowners.
Real estate agents frequently advise sellers to secure their homes with home warranties as an aid in attracting potential buyers.
It is essential for these policies not to be mistaken as replacements for homeowners insurance; home warranties won’t protect homeowners against damage from natural disasters which are generally excluded in most policies and there may not be enough support between insurance providers and house warranty companies for all warranties to cover damages that occur under these plans.
