Types of Home Warranties
Have you ever been in a position where your 10 year old fridge starts to leak and you don’t know what to do? Should you repair it or buy a new fridge? To be honest, this is a very tricky situation. However, if you have a valid home warranty policy, you don’t have to worry about expensive repair costs.
Today, a wide majority of home appliances come with home warranties. Some will cover full repairs while others will cover only some parts of the appliances. In most cases, home warranties cover your home appliances for a period of 1 or 2 years. However, this will highly depend on the type of warranty granted.
The most common types of home warranties are manufacturer warranty, seller’s warranty, extended warranty, appliance service contract and home warranty. All these warranties cater for any breakages on your home appliances. It is important to note that warranties are not insurance policies.
· Manufacturer’s warranty
This is one warranty that people always look out for when purchasing products. It is provided by the manufacturer as an assurance policy. If the home appliance doesn’t meet your expectations, the manufacturer or seller should repair or replace it as long as the warranty is valid. This type of warranty is usually valid for one year. If the seller doesn’t abide by the terms stated in the warranty, you have the right to file a lawsuit.
Nowadays, almost all offline and online stores offer manufacturer’s warranty and original bill for any purchased product. For instance, if you buy your product online, it will be completely sealed to ensure it is not tampered with during transportation. Big home appliances such as HVAC and fridges come with at least 5 years warranty. However, from second year, the warranty is limited to specific parts only.
· Seller’s Warranty
It is also known as dealer warranty. This kind of warranty is offered by the dealer or seller of the appliance and they will often last for about 6 months. Here, if the product malfunctions or doesn’t meet your expectations, you should take it to the specific dealer from whom you bought it from.
· Home warranty
This is a service contract on any home appliance and covers any maintenance and repairs of household equipment. Generally, it covers all repair costs of only insured appliances. It also goes by the names, appliance protection plan, home maintenance plan, appliance service contract or appliance repair service.
· Home service contracts
These are also known as protection agreements. They are often granted by a service company, sellers of the appliance or a third party service provider. Such contractors are basically a local, insured and licensed team which focuses on providing repair services. The cost of repair will vary from one vendor to the next. It is very important to read the terms on this type of home warranty before signing anything.
· Extended warranty
This warranty allows you to extend manufacturer’s warranty once it expires. Products such a Pc, laptop, TVs, home theaters, or other electronics deserve this kind of warranty. Such appliances are usually not covered by home warranty. In most cases, breakdown of appliances will start after the warranty expires and this is why you need to enroll in extended warranty service.
· Kitchen appliance coverage
Just as its name suggests, it only covers damages done to major kitchen appliances. Some kitchen appliances can be very expensive to repair. Appliances covered by this warranty include; garbage disposal, kitchen fan, dishwasher, oven, refrigerator, built-in microwave, the kitchen fan and more.
· Washers and dryers
No matter what plan you choose, most home warranty companies will offer coverage on your dryer and washer. Today, almost all homes have a washer and dryer hence it is extremely beneficial. Such appliances can breakdown at any time hence you should always be covered.
Those are types of home warranties that cover damages on appliances. There are two more types of warranties that cover newly built and existing homes:
· Homebuilder warranty – It covers up to 10 years of any structural defects and an year on items such as drywall, paint and stucco. Appliances are covered for 6 months. Its price is included in the price of the home.
· Warranty for existing homes – This warranty is sold by companies. These policies are paid for by real estate agent or home seller. It covers an year of repairs on various home appliances.
Conclusion
Before enrolling on any type of home warranty, ensure that you do your homework well. Take a closer look at limitations of the contract.
