Understanding Home Warranty Options to Secure Your Investment

The biggest purchase a person will make in their lifetime is probably a home. Once they make this purchase, they need to protect it. Keeping up with repairs can be costly, which is why many people invest in a home warranty today. They don’t want to be hit with a high repair bill or find they must replace an appliance or household system at their expense. The home warranty covers part or all of the cost.

What is a Home Warranty?

Many people think a home warranty and homeowner’s insurance are the same. They aren’t. Homeowner’s insurance provides coverage if the home is vandalized, burns down, or falls victim to a natural disaster. A home warranty pays for repairs or replacement of a covered household system or appliance when the system or appliance fails because of normal wear and tear. However, there are several home warranty options, so research each option carefully to find the right one for your needs.

How Does the Warranty Work?

The warranty works much as the manufacturer’s warranty does. When a household system or appliance breaks down, contact the warranty provider. The provider will send a technician to the home to diagnose the problem and make the repairs. If the system or appliance needs to be replaced because a repair won’t fix it, the warranty provider takes care of the replacement.

Warranty providers charge a service call fee for each visit to the home, and there may be a separate deductible. This is outlined in the service contract. Carefully read over this contract to learn what is covered and what items the provider excludes. This differs by provider, so don’t read one contract and assume they are all the same. Furthermore, there is a limit on how much a provider will pay in a given year. This is also found in the contract.

The Benefits of a Home Warranty

Homeowners often invest in home warranties so they don’t have to worry about unexpected high repair or replacement bills. They don’t need to find a technician to do the work, as the warranty provider finds qualified people. A home warranty is also of benefit when buying or selling a home, as the new homeowner knows they are protected if an appliance or system breaks down in the months following the purchase.

Selecting a Home Warranty

When researching warranty plans, know which systems and appliances are covered. Plans vary greatly in terms of coverage, and you may be able to customize the plan to meet your specific needs. Some providers allow this.

Learn about all costs associated with the plan. This includes the plan premium, service call fees, deductibles, and more. In addition, ask to see a list of service providers the warranty company works with to ensure they are reputable.

Review the terms and conditions of each plan carefully. Most complaints about home warranties are the result of a homeowner not understanding what is and is not covered by their plan. The terms and conditions outline this information along with any limitations. The contract also provides information on claims processing.

Homeowners who choose to invest in a home warranty receive peace of mind. They know they won’t have a high repair bill to pay thanks to this warranty coverage. If an appliance or system must be replaced, they are covered here as well. However, it all comes down to understanding what the warranty does and does not cover. The right warranty will give you the protection you need at a price you can afford.