A home is a major investment in a person’s future. When this purchase is made, the owners wish to protect it. A home warranty may help them to do so while keeping repair and replacement expenses to a minimum. However, is this coverage truly worth the money? This is a question many homeowners have.
What is a Home Warranty?
People who are interested in 2-10 HBW plans want to know what this plan will cover. In most cases, home warranty plans cover major appliances and systems in the home when they break down. This includes the electrical, plumbing, and HVAC systems, along with major appliances such as ranges and dryers. In addition, the plan covers the cost of the technician who will be doing the work.
What is Covered?
Home warranties vary greatly, and it falls on the purchaser to know what is covered. As the coverage increases, the cost goes up. An inexpensive home warranty plan will cover a single system or appliance, such as the coverage many people purchase when they invest in a new appliance for the home. More expensive plans typically cover multiple things in the home, including appliances and major household systems. Nevertheless, it falls on the homeowner to review each plan to learn what is and is not covered.
How Does a Home Warranty Differ from Homeowner’s Insurance?
A home warranty does not cover the same things as a homeowner’s insurance policy. The home warranty covers damage caused by normal wear and tear. In contrast, the homeowner’s insurance covers damage caused by natural disasters, fire, storms, and theft. In addition, this policy protects the homeowner if somebody is injured while on the property. Most mortgage lenders require mortgage holders to maintain a home insurance policy. However, they don’t require a home warranty.
The Benefits of a Home Warranty
A home warranty protects a homeowner if an appliance or system fails suddenly. People who won’t know how to fix things around the home or lack the time to do so benefit from a policy of this type. The cost of this coverage is minimal when compared to the cost of repairing or replacing a major appliance or system in the home.
What Homeowners Must Know
A home warranty doesn’t cover everything. For example, if the homeowner doesn’t maintain an appliance, the warranty company will not repair or replace it. In addition, the warranty company covers the repair technician. As with insurance policies, there are limits and exclusions. The homeowner must know what these are before purchasing a plan to ensure they have the desired level of coverage.
Furthermore, many appliances and systems in the home may already be covered by a manufacturer’s warranty. Nevertheless, this protection is beneficial when these warranties run out.
How Much Does a Home Warranty Cost?
Homeowners may purchase a home warranty by the year or make monthly premiums. The cost of these plans varies greatly, depending on which items are covered, the size of the home, and the selected provider. In addition, the company might charge a service fee for each visit to the home.
Coverage When Selling a Home
A homeowner might wish to purchase a policy when selling their home. This gives the buyer protection from high repair bills immediately after purchasing the home. In addition, certain warranty providers offer free coverage to a buyer who purchases a home. They do so to entice the buyer into continuing this coverage once the free period ends.
People become accustomed to the conveniences in life. When an appliance or household system fails, it disrupts the residents’ regular routines. With the help of a home warranty, this disruption is minimal. Simply call the provider and the problem will be resolved.
