If you are a homeowner and have been thinking about buying a home warranty, it is vital to know some essential facts before making your decision. These include the cost, the coverage, the limits, and what you need to do to ensure that your home is covered if something were to go wrong.
Home Warranty
What is the definition of a home warranty? A home warranty is a service contract that pays for repairs on certain household appliances and systems. The cost of such a plan varies depending on the company and the level of coverage. The costs can range from a few hundred dollars to several thousand. While a home warranty is a valuable safety net, it is not the same as a homeowners insurance policy. This is because a home warranty covers wear and tear on certain items but does not cover damage caused by natural disasters or manufactured disasters. One of the most popular options for home warranties is roof leak coverage. This type of policy may include something other than patios and garages. Often, it covers the home’s main structure and can be a huge help when dealing with a leaking water heater or other appliance.
Costs
Purchasing a home warranty is a great way to save money. It can protect you from expensive repair bills and keep your appliances. However, before you buy, you must determine precisely what is covered. You’ll also need to learn about the costs of a home warranty. Home warranty costs vary based on the type of home and the level of coverage you need. A basic plan can cost as little as $25 a month, but a more expensive plan can cost up to $950 a year. In addition, you can choose a home warranty plan that offers more coverage and optional add-ons. The home warranty costs can vary depending on your selected plan, and you may have to pay a service call fee. This fee is usually charged when a service provider comes to your home to fix a covered system. The amount of this fee varies but is typically between $60 and $125. The cap for the amount of the payout is a common element of a home warranty contract. Most companies have a limit, but you can find out by consulting the agreement if you need clarification. Most home warranties are renewable for as long as you make monthly payments. The renewal cost depends on the type of home warranty you have and if you opt for an option that covers depreciated value.
Coverage
Whether moving into a new home or buying a used property, a home warranty can provide you with added peace of mind. It also can help you reduce your out-of-pocket expenses for costly items. It is an annual service contract covering major home systems and appliances. In the event of a breakdown, the warranty provider will contact a licensed technician and repair the malfunction. This can be done same-day or within a few days. In addition to repairing appliances and systems, many home warranties include electrical, plumbing, and HVAC coverage. Some providers may offer a discount for paying for the protection in one lump sum or signing a multi-year agreement. The home warranty costs vary by provider, but it generally includes a monthly premium, a deductible, and a service fee. In some cases, a home warranty will not cover certain appliances. For example, a hot tub is not usually covered by standard warranties, but many homeowners can purchase an add-on to their policy. Other items that are not covered by a typical warranty include pre-existing conditions. This includes appliances and systems that had failed before the coverage was adequate. So again, it’s best to examine the fine print of any coverage you consider to be sure. Generally, a home warranty will not pay for damages resulting from a natural disaster, such as a tornado or flood. Some of the most common add-ons include septic tank pumping, swimming pool equipment, and food spoilage. The waiting period for a home warranty is often 30 days. However, you can file a claim if the problem is discovered before this period.
Limits
A home warranty is a great way to protect your wallet. However, before you go all in, ensure you know your insurance company’s rules of engagement. The stipulations for your coverage might vary, but they all have a common goal: to cover you if a covered item is damaged. This can include anything from a broken air conditioning unit to a blown a fuse. Plus, you’ll be surprised that most home warranty providers also have an on-site repair shop that will work on your behalf. A savvy homeowner will take advantage of any opportunity to increase their odds of avoiding a costly home repair.
