Home warranties are service contracts that cover the cost of repairs for major appliances and systems if they break down, such as your air conditioning unit or furnace. They can be purchased individually or as a combined plan, often as an alternative to homeowners insurance policies.
But are home warranties appropriate for you? Read on to discover home warranty facts which might help make up your mind.
Peace of Mind
Everything comes with warranties these days, from cars and computers to cell phones and home appliances – and warranties provide consumers with peace of mind knowing their product stands behind it should any issues arise.
An effective home warranty plan may provide new homeowners with peace of mind when it comes to most major appliances and systems in their house, should something go wrong. This is particularly helpful for people without enough savings set aside for major repairs.
Be mindful of a home warranty’s limits: it doesn’t provide complete protection from all the things that could go wrong in your home, like preexisting conditions or accidents that happened prior to signing the warranty contract. As such, it is imperative that you read all fine print carefully and research companies thoroughly before entering into a contract agreement.
Reliability
Paying out-of-pocket for every little repair and replacement can add up. Home warranties provide relief by covering major systems and appliances should they become damaged through normal wear and tear or simply stop functioning altogether. For instance, paying for water heater problems can be problematic without a home warranty, as you can see here: https://www.cinchhomeservices.com/faq-library/-/faq/does-a-home-warranty-cover-water-heaters
Home warranties may seem costly at first, but in the long run can save you from unexpected breakdowns that drain emergency funds or lead to crippling debt repayments.
Homeowners looking for home warranty providers should select one that offers a clear contract, with well-outlined terms, clauses, and exclusions. Before signing, homeowners should also research its Better Business Bureau rating and customer testimonials to help make an informed decision. It is also essential that consumers understand their state regulations regarding home warranty companies as some do not operate legally – many states have an insurance commissioner or Department of Consumer Protection that oversees residential service contracts.
Coverage Options
Home warranty providers typically offer multiple plans tailored to the specific needs of homeowners, from a system plan or appliance coverage, or both. It is essential to read through contract details and understand terms before choosing one, along with fees charged for service calls and any caps placed on repairs/replacement costs.
Home warranty services provide protection to new homeowners, which is especially helpful given that it can be hard to gauge the condition of systems and appliances in their new home before moving in – often needing immediate repair upon moving in.
Sellers sometimes pay for the first year of home warranty coverage to entice buyers. After that period is up, the buyer has the choice between continuing it or purchasing another plan; but keep in mind that these warranties don’t provide coverage against natural disasters or theft – that’s what homeowners insurance is designed to do.
Claims Process
Home warranty companies provide various services designed to assist homeowners when their covered appliances and systems break down or malfunction, including an easy claims process with quick payout. Unfortunately, home warranties cannot always cover all costs associated with an unexpected breakdown or malfunction.
Home warranties cover repairs and replacements that fall within their coverage limits and exclusions, such as improperly installed systems or appliances that will likely not be covered. Some contracts outline these restrictions; other times they are left up to interpretation; for instance if improper installation causes further complications it might not be covered at all.
Keep accurate records throughout the home warranty claim process is especially crucial in cases when the provider denies your request, to allow you to review their decision and appeal if necessary. Most reputable home warranty providers have formal appeals processes which take time but also give the provider an opportunity to reevaluate its reasoning for rejecting your request.