When selling your home, having home warranty protection is a great way to differentiate your property from others. While it is impossible to foresee the breakdown of a home system, a warranty covers unexpected repairs or replacements. Home warranties also help you stand out and attract more potential buyers.
It is a Consumer Convenience Product.
The purpose of a home warranty is to protect a homeowner against expensive repairs and replacements. A typical home warranty like the Arizona home warranty plan covers a variety of appliances and systems and may also include a rekeying service. However, it's important to note that a home warranty doesn't cover everything. While many home warranties offer coverage for major appliances, some only cover certain types of appliances.
Home warranty companies typically rely on small in-network contractors for repairs. As such, they might not have a technician available during your emergency. Additionally, it may take weeks for a claim to be processed. Start an account online to expedite the claims process.
It Protects Against Unanticipated Costs.
A home warranty is an excellent way to protect your home investment from unexpected costs. Appliances and systems in your home have a limited lifespan and are bound to break down at some point. A warranty can help protect you from the unanticipated costs of these repairs and keep you within your budget.
If you have a home warranty, you can be confident that the company will dispatch skilled service contractors to your home if you need to file a claim. Moreover, home warranty coverage also covers breakdowns resulting from normal wear and tear. Studies show that more than half of homeowners experience some emergency repair in their homes.
It's Not the Same as Homeowners Insurance.
When you purchase a home warranty, you should pay close attention to the terms of service. Many home warranties come with a general service call fee as your deductible. These fees usually range from $50 to $150. Many home warranty providers will also allow you to choose your deductible. If you select a higher deductible, your monthly costs may be lower.
A home warranty policy covers the cost of major appliances and systems. Many homeowners assume their home insurance will pay for all expenses, but it is essential to understand that your policy does not cover day-to-day wear and tear. Many home appliances and systems will break down eventually, requiring expensive repairs or replacements. One recent survey by Consumer Reports found that almost one in five new household appliances will need repair within a few years of purchase.
It's Not Required
Home warranty protection can save you money and give you peace of mind if a problem arises with your home appliances, heating system, or other systems. It can cover specific repairs and replacements. You may have to pay a deductible or monthly premium, depending on your chosen plan. You should also be aware that a home warranty covers not all appliances or parts.
Many home warranty providers offer extended coverage or upgrades so that you can add more protection. The home warranty contract outlines the coverage that you are entitled to, any voiding actions, and maximum payouts per event or year. If unsatisfied with your home warranty coverage, you can take legal action against the company.
It's Not One-Size-Fits-All.
Understanding that a home warranty is different from homeowners insurance is essential. While homeowners insurance covers many of the same things, a home warranty is specifically designed to cover home repairs and maintenance. There are many different types of home protection plans, and each one is designed to cover different types of repairs.
While home warranties can provide a good deal of protection against unexpected costs, they often exclude coverage for pre-existing conditions. For example, most companies have a 30-day waiting period before allowing coverage to kick in. This allows buyers to rule out any problems present in the home before the warranty protection begins. Generally, a pre-existing condition is defined as an appliance or system that had failed before coverage began. This is typically determined by a visual inspection or a simple mechanical test.