What Is Typically Covered By Home Warranties?
Background - A home warranty
A home warranty refers to a contractual agreement between a homeowner and a service company that is involved in the maintenance and repair of a number of household components. You may wonder, what is typically covered by home warranties? The warranty covers items such as the plumbing system, air conditioning system, swimming pools, spa, dryers, kitchen appliances and a host of other household electrical items.
A typical home warranty covers maintenance, service and replacement of household items that break down as a result of normal wear and tear over the contract period at a small fee. The normal contract period runs for one year. For a homeowner looking for a convenient and easy way to get the items repaired, a home warranty is a good option.
What you should know about a home warranty
Many people wonder about the difference between a home warranty and a manufacturer’s warranty. The two are different because a manufacturers warranty mostly covers new items for the first year or so depending on the terms of the warranty. A home warranty on the other hand covers the items in your house regardless of their age.
If you purchase a home warranty, the coverage begins about two weeks from the date of payment. In case you have purchased and new home and would like to have it covered, the home warranty comes into effect as soon as you close the purchase. Another advantage of the home warranty is that in the event you sell your house together with all its items, the coverage is transferred to the new owner for the number of months remaining on the contract as long as you notify the provider.
It is important to note that although it is not always necessary for the provider of the home warranty to inspect your house as you enter into the contract, you are required to only list items that are in good working order. The warranty coverage does not include items with pre-existing malfunctions.
Like any other contract, you need to do your research to identify the provider offering you the best terms at a fair price. It is in your interest to inquire how long a provider has been in business and whether they have a money-back guarantee, in case you are not satisfied with their services. Some warranty provider are known to decline covering old and worn out household items. As long as the item is in working condition, there are no grounds for a provider to deny you coverage.
Before making a decision to purchase a warranty, you need to find out how much you will be charged per visit. In addition, the renewal and cancellations terms should be clear to ensure that you are not forced to file a dispute.
Benefits of a Home Warranty
Offers you peace of mind - When you sign a home warranty contract, it allows you to have peace of mind in the knowledge that should your household items break down, they will be swiftly repaired. Considering that you will not have to dip into your savings to get the repairs done, the plan takes your mind off emergency repair bills.
Improves your property value - In the event you are selling your house, it is good to know that a large majority of buyers prefer buying a house that has a home warranty. It thus means that not only will you get a better price for your house, but you will also be able to sell it faster. Many first time buyers are attracted to a home with a warranty because having made huge sacrifices to buy a home, they do not have extra cash to spend on repairs.
Gets the repair job done by experts - Most home warranty companies have a list of expert technicians to take care of your job. Many homeowners have had the misfortune of working with unscrupulous technicians that have no idea how to repair an item and yet they go ahead and charge an exorbitant fee. In the worst case scenario, one may have their item damaged completely. You may also encounter a greedy technician that will charge for parts that they have not replaced.
Avoid a delay in the process of selling a home - If you are in the process of selling your house, a hitch with the air conditioner may delay the sale process. If you have a home warranty in place, there will be no delay since the problem will be sorted promptly.
Having gone through the content above, we hope that the question ''what is typically covered by home warranties?'' has been adequately addressed.
