If you’re thinking about purchasing a home warranty, you’ll want to do your research. Find a home warranty service provider with plans that meet your budget and your coverage needs.
A home warranty can help protect your budget when unexpected repairs arise. It’s a great complement to homeowners insurance. Be sure to educate yourself and maybe even go over the home warranty review2 a few times to ensure that you understand what the coverage entails.
What is a Home Warranty?
Home warranties are service contracts that cover repairs and replacements for the systems and appliances in a home. A good home warranty plan from a trustworthy provider should include coverage for the following:
For buyers, a home warranty provides reassurance that if something breaks down, they will have help paying to repair or replace it—especially during the first few years of homeownership. A warranty can also offset the cost of a new or used home, making it more affordable for many first-time homeowners. For sellers, a home warranty can also provide added protection from unexpected repairs during the sale process. After all, nobody wants to pay for a sewer line fix while juggling mortgage rates and home offers.
Coverage Options
Choosing the right home warranty provider and plan is an important decision for homeowners. When comparing providers, consider pricing and plans, reputation, customer service, and contractor network. In addition to the basics, look for unique add-ons such as roof leak protection and plumbing stoppage coverage. Some providers also cover separate structures, such as garages, for an additional fee.
In the event that a dispute between the homeowner and the warranty company cannot be resolved, most warranties provide for mediation or arbitration. In this process, an arbitrator hears both sides of the case and makes a decision. Having the right home warranty coverage can protect a new build or remodel from the unexpected costs of repairs and replacements, and can help ease the stress that often comes with owning a home. Home warranty coverage can also increase a property’s market value, as potential buyers know that the major systems and appliances have been maintained properly. The cost of a home warranty is far less than the amount that could be spent on costly repair or replacement.
Costs
Home warranties help protect homeowners from the costly expense of repairs for appliances and systems that break down due to normal wear and tear. The cost for these services varies based on the plan selected and optional add-ons.
Typically, the cost of a home warranty includes a monthly premium and service call fee. The service call fee is a one-time charge that covers the expense of sending a
technician to your home to diagnose an issue. This cost varies by company and keep in mind that every warranty company is different in terms of coverage, costs and claims process.
Many home warranty plans also include a deductible for covered expenses. These deductibles vary from plan to plan. Whether you’re a real estate agent looking to give your clients peace of mind during the buying and selling process, or if you’re a homeowner searching for a solution to cover unexpected repair costs, a home warranty is an affordable option.
Claims Process
Home warranty companies differ in how they approach the claims process. Some require that their customers read their service contracts carefully in order to understand the limitations and exclusions that may impact their claim. These exclusions often include lack of maintenance, as well as issues such as manufacturer defects and faulty installations.
Most home warranty providers offer a 24 x 7 claims service to ensure that homeowners can lodge their claims at any time of the day or night. They will also assign a dedicated claims expert to provide support throughout the process, offering consistent and individualized service.
Most importantly, a home warranty complements a homeowner’s existing homeowners insurance policy by providing coverage for unexpected expenses that exceed a standard homeowners insurance plan’s liability limits. It is important to note, however, that a home warranty does not provide coverage the same way for every homeowner, generally each plan is different.