What is a Home Warranty ?
A Home Warranty is not insurance. Home owner insurance protects a home owner against fire, theft or some other type of catastrophic loss that could be financially devastating. Don’t expect your home owner insurance to pay the cost of fixing a broken refrigerator or pay to have your HVAC system fixed.
A Home Warranty is a service contract. The purpose of the home warranty is to cover the cost of repairing or replacing household systems or appliances that break or stop working due to normal wear and tear. Appliances covered under a home warranty may include a built in dishwasher, built in microwave, and the range/oven. Household systems may include the plumbing system, the electrical system, sump pumps, roofs, septic system, and HVAC system.
How does a home warranty work ?
Once the warranty is in affect all you have to do is call the warranty provider when there is a problem.
The warranty company will ask questions and collect information about the problem and they will let you know if the problem is covered by your contract.
If the repairs are covered a contractor will be contacted to schedule the repairs.
What is the cost of a home warranty ?
Expect to pay $500.00 to $ 700.00 for a home warranty policy that will cover a home for one year.
Expect to pay a deductible on every service claim
A home warranty does not cover everything in your home that needs to be fixed or replaced. There will be “Limitations of Coverage”. Make sure you read the contract before signing so you know exactly what is covered and what is not covered.
Benefits of a home warranty
According to a 2014 LA Times article a home with a home warranty will sell 11 days quicker and for an average of $2,300.00 more than a home without a warranty.
It is supposed to protect the homeowner against expensive, unforeseen repair bills and provide a peace of mind.
It takes the stress out of finding a contractor. The warranty company will have a network of reliable and qualified contractors that will perform the work.
Irreparable appliances will be replaced for you.
The marketed is flooded with home warranty companies. Have not doubt that there are fraudulent companies out there that will take your money. Before you purchase a home warranty do your research. Read online reviews, call the Better Business Bureau and ask questions.