Home Warranty Plans

When you own a home, you have a lot of important decisions to make. To protect this most important asset, you need to be financially prepared. One way to do this is to purchase a home warranty plan. This coverage protects you from having to pay a substantial amount of money to repair broken home systems and appliances.

Your home appliances won’t last forever. When they start to sputter, you know it’s time to consider fixing them or replacing them. If you don’t have the money to take care of these needs, you might have to do without these conveniences or put yourself in a difficult position.

As you learn more about home warranty and how it works, you will see how beneficial this coverage is. You can then enjoy more financial security and peace of mind.

Some people think a home warranty is the same as homeowners insurance. There are some similarities, but there are key differences as well. To begin with, this coverage is not required, as insurance is. Your homeowner’s policy covers losses and damage in your home and on your property due to catastrophic events and disasters. A home warranty will pay for the repairs and replacements of appliances and systems when wear and tear causes them to stop working.

A home warranty will be part of your purchase if you buy a brand-new home. Otherwise, you will have to buy this plan separately. It lasts for one year, and you can renew it anytime you would like. It will provide protection for major appliances, such as the dishwasher, fridge, washer and dryer, range, garbage disposal, built-in microwave, and water heater. It also applies to your electrical, plumbing, and HVAC systems.

When you have a warranty, you will pay a monthly or annual fee (usually around $500 a year). The warranty company will then send a skilled technician to your home when something breaks to diagnose the issue and take care of it.

A home warranty provides many benefits. It can give you peace of mind and save you a significant amount of money. Instead of paying hundreds or even thousands for repairs or new installations, you can have coverage without paying normal out-of-pocket costs. However, home warranties do have some limitations. You should know what these are before you select a plan.

You would not have coverage if the appliances or systems in question were not installed properly. You can also not expect the warranty company to accept your claim if the item breaks down because you failed to properly maintain it. If you break or damage the equipment on purpose, or the damage is caused by vandalism, the warranty claim will be denied.

Also, there will be some out-of-pocket costs. You will have to pay a service call fee for the technician’s assessment and diagnosis. Be advised that a plan also has a cap on how much it will cover per item. You would be responsible for paying the rest.

There will be many options when you start looking at home warranty plans. It can be difficult to know which one is right for you. The best approach is to look at several different plans and compare and contrast them. Research what each provides, including the benefits and potential drawbacks.

Make a list of what you like and dislike about these choices. You should then be able to narrow your search and eliminate some candidates. Don’t be hasty and choose the first warranty you find. Instead, do your due diligence and get as much information about each one you investigate.

Another good approach is to talk to people you know and see whether they have a home warranty plan. For those people who do have this coverage, ask which warranty plan they have and what their experience has been. Talk to family members, coworkers, and neighbors about whether they have used a warranty. You can find out whether these people would recommend the plan.

You should also ask questions about how the claims process works. Find out how long it takes for a repair technician to come over and make the repairs.

Ask about customer service and how friendly and helpful the agents are. Also, as you chat with these people, it will also be good to get a sense of how much money they have saved using a home warranty.