Home Warranty Common Questions
What is home warranty?
There are various types of Home Protection warranty plans available in the market today. Mainly, home warranty plans cover your household appliances and systems from breakdown and put less risk on your budget. When an insured device goes wrong it is either repaired or replaced.
How does a home warranty work?
In case of any unexpected breakdown of the appliance, you can open a claim by calling the customer support or report it via online. Normally it works for 365 days a year. Once the report is processed, contractor assistance will be scheduled as per your convenient time.
What are the major appliances covered in home warranty?
Most basic plan covers major appliances like heating, air conditioning, plumbing systems, electrical appliances, kitchen and laundry appliances or any other expensive units. For a detailed list, refer to What is covered by home warranty article
Some Standard coverage may also include appliances like:
Plumbing stoppages, toilets, sump pump, bathroom whirlpool motor pump, recirculating hot water pump, water heater, heating and duct work, telephone system, central vacuum system, garage door opener, ceiling fans, attic and exhaust fans, smoke detectors, doorbells, dishwasher, range, oven, cook tops, built-in microwave, instant hot water dispenser and trash compactor.
What is not covered in home warranty plan?
Warranty covers only those systems and appliances, specifically mentioned as covered and excludes all the others. The contract does not cover system or appliance failures that occur due to lack of maintenance.
What is Optional Coverage?
Additional or optional coverage is meant for any add-on items such as kitchen appliances like refrigerator, oven, washer/dryer, air conditioning, pool and spa equipment. Roof leak repair are available for purchase for an additional fee at the time of contract.
How much does a home warranty cost?
Typical home warranty expenses includes:
Annual premium which would be around $300 to $500 for basic appliance coverage and service call fee per incident would be of $40 to $70 which might also slightly vary from company to company.
Who pays for home warranty coverage?
It depends. Generally the buyer pays the cost of a home warranty policy. However, the seller may buy a policy for the benefit of the buyer to avoid certain liabilities that may occur after the closing. You can also buy a policy on existing homes.
When does coverage begin?
Coverage begins as soon as you apply for it and premiums are paid before your validity is about to expire.
For sellers: Usually the coverage varies from company to company . Coverage begins when the enrollment form is received and continues through the listing agreement period.
For buyers: Coverage begins at closing (when title is transferred and payment is received).
For Existing Homeowners: Generally coverage is effective 30 days after receipt of funds. Check with the contract guidelines to confirm on the duration.
What are deductibles or trade service call fee?
A standard service fee/deductible applies for each service call per trade (appliance, HVAC, plumbing, electrical). Some repairs may require more than one service partner or several unrelated visits to the house by the same service partner, and a service fee would apply for each visit. If a contractor has to order parts and come back to your house at a later time to complete the repairs, this visit would not require an additional deductible. Fee varies from company to company, but it is generally between $40 to $100 per incident. Some companies have zero deductible home warranties
What Can Cause Denial of Payment?
Denial rejection of payment may cause due to the improper maintenance, code violations, unusual wear and tear and improper installation
What is home inspection?
Home inspector investigates the comprehensive information about property conditions. He/she analyzes the description of problem in a written report and recommends further evaluation if required. Normally every Inspection report is guaranteed for 30 days.
How do I request for warranty service?
You must have received your Home Protection Kit after having purchased warranty coverage within which you will be able to find all the information and materials you need on servicing contract. You have several options, you can locate the toll free numbers of the service providers. Your call will be immediately answered, 24/7/365 by a customer service representative who will expedite your request.
What if you have an emergency over the weekend where the service is not provided?
Most warranties come with an emergency repair service option. You may simply contact customer service toll free number and report the problem. Normally customer support works for 24 hours a day, 7 days a week and 365 days a year. They will schedule the dispatch of a qualified service technician as early as possible. To which the technician can rectify and sort the issue.
How long does it usually take to provide service, once it is requested?
The time span of the service request through the completion of service is within 48 hours. In any emergency cases the serviceable time is much quicker.
What is the replacement policy?
If the item analyzed reveals that the item is covered under the policy, the technician will normally fix it on the spot. Warranty Company may provide the cash payment on repair or replacement. If it is decided that the covered item is not repairable, or it is not cost effective to repair, appliance may be replaced with a new product with the similar primary functionality and capacity. But the company may not be able to provide exact match in color, dye, material, type or brand.
How is a home warranty different than the manufacturer warranty that is available with most appliance purchases?
Manufacturer Warranty is mainly considered to cover the factory defect of the product purchased; it is limited and restricted on the new appliances for the period of one year. But home warranty covers a whole range of breakdowns that occur with wear and tear which results with the usage over time.
What is home buyers protection?
A home buyer’s protection plan is a service contract that generally covers repairs for your insured appliances like electrical, plumbing and heating systems and built-in appliances that are not covered by regular homeowner’s insurance.
Home warranty coverage differs a bit from company to company. It is very essential to read each and every term and condition of the policy carefully before choosing one that is really suitable for your requirements. Most of the standard policies cover plumbing and heating appliances, but if the cooling units are not covered under the basic plan you can still include it by paying an additional fee cost into your policy.
How does a Home warranty plan work?
Though there are different plans available in the different warranty companies, most plans functions in the same way.
Step 1- In case any of your system stop working you need to call your home warranty company.
Step 2- Home Warranty company contact a service provider with whom they have their business tied up.
Step 3- Now the service provider calls you (home owner) to confirm an appointment.
Step 4- Issue will be fixed by the technical person. But in rare cases if the appliance could not be repaired and need to be replaced based on contract coverage, home warranty company will pay for the replacement of the appliance.
Step 5- As a small out pocket expense you may need to pay for each service request. You may have to pay a Trade Service Call Fee of around $50 per visit.
Can I renew my home warranty plan?
Usually the home warranty coverage plan begins 30 days after the payment receipt or by the day the sale closes. The coverage plan generally covers the appliances for 365 days from the date the policy is active.
When your original home warranty expires, you have the choice of extending your existing warranty. Before deciding on extension of home warranty it is essential to know whether the existing warranty is really beneficial or not.
Home Warranty Company will send the notification to the warranty holder regarding the renewal of coverage. The homeowners will be notified about the expiration date in advance and will br suggested a variety of convenient payment plans.
Is the Home Warranty value worth the cost?
If your home is newly constructed house then you may think that home warranty is not essential for first few years. But it is wise to have a warranty protection plan to protect your costly repairs.
The standard policy usually costs of $200-$600 per year which is reasonable and can certainly save your money on repair or replacement of the appliance. However, just remember you cannot get extended warranties on plumbing, duct work, electrical or gas systems.
I have home owners insurance then why do I need a home warranty?
Homeowners insurance covers personal belongings and the entire house in case of burglary or natural disaster such as fire, lightning, tree fall etc., but it does not cover regular maintenance and replacement costs of appliances. That is where home warranty coverage picks up.
Home warranty plans cover your household appliance and system from breakdown and put less risk on your budget. When an insured device goes wrong it is either repaired or replaced from the warranty company. Basic home warranty plan covers major appliances like heating, air conditioning, plumbing systems, electrical appliances, kitchen and laundry appliances or any other expensive units.
Your homeowner’s insurance is hazard insurance, and only covers items damaged due to fire, flooding, wind, and other natural disasters. A home warranty repairs household appliances and mechanical systems that breaks down due to normal wear and tear.