How Do Home Warranties Work?

Imagine you just moved from an older home into a new home. What do you do when you realize the heating system doesn’t work and the appliances have all surpassed their manufacturing warrant? As a homeowner, out-of-pocket costs settlement can be very damning to an already lean budget. That makes a home warranty a good idea and an option worthy of considering.

There are several reasons why home warranties are a must-have. But first, here is all you need to know about how home warranties and how they work.

What is a home warranty?

A home warranty gives you peace of mind for your home systems. It’s a systematic home service plan that keeps you protected should a breakdown occur. Many American home warranty companies have varying prices and offerings. A lot of factors may account for these variations, including location. For instance, a home warranty in Florida where home insurance is not alien to consumers may come at different price levels than inner cities.

That notwithstanding, the average cost of a home warranty plan is around $600. Keep in mind to compare plans by reviewing the fine print and other relevant documents thoroughly before settling on one.

What does a home warranty cover?

Typically, a home warranty contract will cover your home appliance and major systems like your plumbing system. But before you get all the custom interior design from Interiorly, note that a home warranty may not cover everything. A good home warranty provider will outline a list of specific exclusions that are out of scope for a basic plan. However, depending on your home warranty coverage, there may be optional add-on perks you can enjoy.

Some of the usual appliances and systems covered include:

  • Refrigerator (may or may not include ice maker)
  • Dishwasher
  • Air conditioner
  • Garbage disposal
  • HVAC system
  • Plumbing system
  • Electrical system

Usually, the relevant documents provided as you purchase a plan detail all the coverage options associated with the home warranty plan.

How does a home warranty work?

A home warranty is part of the overall protection of your home. Some providers cover specific appliances; others focus on home systems in general. Other companies even have more comprehensive options which combine both. Whatever you opt for, you can submit a request to the warranty company if you encounter an issue, and they’ll send a technician your way. These technicians will help diagnose and repair the problem. A replacement of the appliance is also an option.

How does a home warranty last?

It’s often a year-long, even though some others can go up to three years. Comprehensive options which combine appliances and systems coverage may take longer.

What should I look out for in a home warranty?

For starters, you may want to compare the services and offerings of several options. It’s advisable to consider referrals and customer reviews on their website if they have. Note that the best home warranty is tailored to your appliances’ age and condition. Before you purchase a home warranty, do well to take inventory of your appliances and systems. Determine the ones that are on the verge of outliving their functionality.

Also, consider looking out for pre-existing conditions if you’re getting a house that comes with existing appliances. If you’re not aware of how often appliances have been serviced in the past, you may be setting yourself up for surprise breakdowns and more out-of-pocket settlements.

A great way to go around this is to consider a home warranty company that’ll offer to inspect your home. That way, you’ll know the extent of the damage and what may or may not be included in your home warranty. Also, home warranty providers who have a seamlessly convenient claims process have a very great advantage. It’s good if your home warranty has claims offices in your locality, even better if they have a responsive online portal for the cause.

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