Just about every homeowner has a homeowner’s insurance policy, but many households go without home warranties. In fact, most people don’t even know what a home warranty is. This article will offer an introduction to what every homeowner should know about home warranties before deciding whether to purchase one.
What Is a Home Warranty?
A home warranty is not a traditional insurance policy. It’s a contract that homeowners can make with a warranty company to cover things like appliances and structural systems. Home warranties can help to offset the cost of maintaining, repairing, and replacing key systems and appliances, although it’s important to check what’s included in a home warranty plan before signing up.
Home Warranties Are Not Included in Homeowners Insurance
The first thing most homeowners ask about home warranties is whether they are included in homeowners insurance policies. The answer is a consistent no. While homeowner’s insurance covers losses or damages incurred as a result of acts of nature like fires and floods, they don’t cover issues that occur as a result of regular wear and tear.
A home warranty can act as a perfect complement to a comprehensive homeowners insurance policy. Homeowners can pay a monthly premium, then get all the repairs, maintenance, and replacements required to keep covered appliances and home support systems in good working order.
Every Warranty Plan Is a Little Different
There are different levels of coverage available through home warranty plans. Some only cover kitchen appliances, while others cover all of a home’s support systems, from HVAC units and water heaters to plumbing and electrical systems. The deductibles and caps on coverage often vary by plan, as well, so it’s important to read the fine print and choose a home warranty that fits in the family’s budget and offers the right level of coverage.
The Repair Request Process Is a Little Different
Homeowners who are used to just calling the same trusty local repair services for all of their needs sometimes have a hard time getting used to working with home warranty companies, but most wind up loving the simplicity. When something goes wrong with a covered appliance or system, the homeowner just has to call the warranty firm. The firm will then contact one of its approved contractors on the warranty holder’s behalf, making it much easier to schedule repairs and replacements.
Ongoing Maintenance Is a Must
Some home warranty plans cover routine maintenance, while others do not. Either way, homeowners will need to keep up with inspections and tune-ups because failing to provide adequate maintenance according to the warranty’s terms and conditions can void the coverage. The good news for homeowners here is that appliances and home support systems are much less likely to break down unexpectedly when they receive adequate maintenance, which means fewer hassles for everyone.
The Benefits Are Worth the Cost
Most home warranty plans are quite affordable, and the benefits that they offer homeowners are well worth the cost. Instead of worrying about equipment breakdowns, homeowners can rest easy knowing that they won’t have to cover unexpected repairs or replacements out of pocket.
As long as homeowners choose a company that has a reputation for providing honest, transparent warranty plans, the convenience and cost savings associated with home warranties are well worth the cost. Start investigating options and reaching out for quotes today.