Home warranties are a convenient way to cover repair costs for household appliances and systems. However, homeowners should carefully review their policy to make sure they understand what is covered. They should also keep detailed records of communication with the warranty company in case they need to file a service request.
- What is a Home Warranty?
A home warranty is a service contract that provides coverage for appliances and systems in your home. It covers the cost of repair or replacement after a breakdown and requires a small service fee from the homeowner. Home warranties are often offered as an incentive when selling a home, but they can also be helpful for existing homeowners who want to save time and money.
A home warranty typically covers appliances and system failures that result from normal wear and tear. However, it does not cover preexisting conditions or items that have been improperly installed or maintained. A home warranty is an alternative to setting aside money in a rainy-day fund or using credit cards to cover unexpected repairs and replacements. Home warranty companies may also charge a monthly or annual premium and service call fees.
- What is a Home Warranty Company?
There are big confusions when it comes to understanding the difference between home warranty and home insurance. Home warranty companies offer a service contract that protects home systems and appliances from the costs of repair or replacement due to normal wear and tear. These contracts are typically one year in duration.
The yearly premium varies, depending on the coverage selected. In addition to the yearly fee, there may also be copays for repairs and trade call fees.
Some companies offer add-on coverage for pools, well pumps, septic systems and roof leaks. Other damages to homes from severe weather, vandalism or theft remain the responsibility of homeowners insurance and are not covered by home warranties.
Newly constructed homes and new appliances generally come with manufacturer warranties, so a home warranty may not be needed until these expire. For older homes, a home warranty may provide peace of mind and protection from unexpected expenses.
- What are the Benefits of a Home Warranty?
Home warranties offer financial protection against costly repair bills for appliances and systems that fail because of normal wear and tear. They also allow homeowners to avoid depleting their emergency savings to pay for unexpected home repairs.
The best home warranty companies provide clear contracts with well-defined terms
and conditions, clauses and exclusions to prevent surprises down the line. A good provider can also help homeowners find reliable service providers for their repairs.
For many homeowners, a home warranty is worth the cost because it gives them peace of mind that their appliances and systems will be covered in the event they break down. However, it is important to note that home warranties don’t always cover everything and homeowners still need to prepare for unforeseen expenses.
- What are the Costs of a Home Warranty?
While a home warranty might seem like an affordable and worthwhile purchase, buyers should review the contract carefully to make sure they are getting what they are paying for. They should look for fees, copays and other charges that can add up to a significant amount.
The cost of a home warranty depends on the company and the plan purchased, but in general, it can range from several hundred dollars to a few thousand. The annual premium can be paid up-front or in installments and is usually a percentage of the total coverage.
Some companies also charge a service fee for each call that is made to have an item repaired or replaced. Some plans may also have stipulations, such as appliance age or proof of maintenance, that could prevent a homeowner from being able to claim certain appliances and systems.
- What are the Benefits of a Home Warranty Company?
A home warranty can help protect you against costly, unforeseen repairs to appliances and systems in your house. You can choose from a variety of plans offered by different home warranty companies. Some providers allow you to choose your contractor while others dispatch local technicians when you file a claim. You can check customer reviews of these providers on sites like Trustpilot and the Better Business Bureau to find out which ones have a good reputation in New York.
If you have a home warranty, you only need to make one call when something breaks down and your provider will find a qualified service professional for you. This saves you time and energy from having to shop around for a repairman yourself. However, most home warranties don’t cover surface or cosmetic damage to appliances and systems.