Home Warranty or appliance extended warranty are basically insurance policies for the appliances and systems in your home. Hope you never have to employ them, but glad you have it when your appliance breakdown. With cost of service & electronic components, your repair bill could end up being the same as the price appliance was bought for.
This article will help you in deciding on what is more pertinent, buying a home warranty or extended warranty.
Home Warranty – Valuing Your Possessions
‘Home Warranty’ is typically provided by the builder to a new homeowner. This covers major household appliances and systems such as washing machine, refrigerators, gas system, central heating and plumbing. Remember, you are only covered if the failure of the appliances or systems is not a result of mishandling or misuse.
Extended warranty, as the name suggests is usually purchased for a specific appliance(s) or system(s) for a definite period. This warranty is generally provided by the OEM (original equipment manufacturer) or any of their subsidiaries or partners. Extended warranty begins once the standard warranty on the product expires and comes with a cost.
The least you must be expecting from a warranty on a new appliance is one year on parts and labor. This home warranty cover flaws in parts and workmanship for that year. Generally this warranty will be on site service except for smaller units that may have to be transported to the nearest service centre at the owner’s cost for repair.
This warranty generally starts from the date the appliance was purchased, delivered or installed.
Appliance warranties may or may not cover “cosmetic” or “customer instruct” claims. Cosmetic claims might be a scratch, broken plastic trim piece or knob. Some manufacturers will cover these claims for the first 30 or 60 days. Customers instruct calls can include installation issued calls or operation calls which will also be covered for the first 30 or 60 days.
Limited warranties are extended warranties on specific parts of your appliance. These limited warranties are stated in owner’s manual and have fine print, so ensure you read them carefully. Most of the limited warranties offer the part free of cost, the customer may be asked to pay for labor.
Below are some examples of limited warranties.
Parts replaced under a limited warranty will not increase the warranty period. Generally they will only be assured for the remaining life of the original product’s warranty period.
Lastly, these extended warranties or any appliance warranties are not transferrable to a second owner so keep this mind while buying or selling a pre-owned product.
When repairs on appliances are needed, they can be pricey. Here is a list of appliance types and some repairs that we think might call for a purchase of a repair contract.
When a major problem occurs, specially a built-in appliance, it may not be easy. Some built in appliances are not uniform in size and cabinet work may be required to replace this appliance. In this case, getting the appliance repaired may be expensive. Contract would definitely be best for this case.
Many modern day appliances have electronic controls. If you live in an area that is prone to power outages, surges or fluctuations, electronic appliances have a bigger danger of being damaged. Most electronic boards are not low-priced to replace, as some cost well over $300 for the part alone. In this case, an agreement would perhaps be wise.
Majority of gas ranges use electronics for control and ignition of the gas. These parts need service or replacement through the life of the stove. Glow bar igniters in your oven are not hard to replace but the cost for these parts are $50-$150. Control boards cost generally from $100-$250. With these costs alone, you can purchase an agreement.
Standard gas ranges require fewer repairs. These stoves are very simple and can run for a lifetime without a repair. Moreover, of gas stoves can still be used even if you have a power outage. In this case, agreement is not recommended.
For electronic, self-clean, glass top stoves, a contract is always recommended. Parts on these stoves are usually pricey. Elements alone can cost almost $200; glass tops can cost $600, and controls up to $250.
In case you are purchasing a simple, basic coil type stove, repairs are fairly low-priced. In most of the cases these repairs can be done by the homeowner and he/she shouldn’t be worried about a repair agreement.
Gas dryers must be serviced by skilled technicians only. Sometimes heating problems are difficult to diagnose and can be dangerous if not corrected properly.
Do your homework BEFORE buying home warranty or extended warranty for your appliances or systems. Understand the “Terms and Conditions” of the contract, specially its limitations.
Be sure you know:
Asking the right questions BEFORE PURCHASING will prevent unwelcomed surprises!
‘Extended Warranties’ usually mirror your original home appliance warranty, offering repair, service and replacement of major systems and appliances within home that breakdown. Extended warranties can be provided by the manufacturer, the dealer where you purchased it, or third party. Manufacturers will generally let you procure an extended warranty at the time of purchase or during your warranty period. Since these warranties are offered by who made your appliance, so the service will generally be provided by the same people who provide the warranty work.
These service companies usually have the proper training for your appliance and are more knowledgeable about your appliance. Dealer extended warranties will either service your appliance themselves or use an approved service provider. Either way, the service company must be trained for your appliance similar to the manufacturers extended warranty contract.
Third Party extended warranty is generally managed by a national company. One more thing that you should keep in mind is that some credit card companies extend the manufacturer’s warranty by a full year when you pay using one of their cards.
Home warranties are all the time, a third party company and are a bit different than extended warranties. These warranties cover your entire home which includes plumbing, HVAC systems, electrical appliances and other items. The cost related with these home warranties is based on the items that are actually being protected and on the type of deductible or service fee you sign up for.
Home warranties can be procured any time without any age restrictions or an inspection of your home and equipment. In addition, sellers, builders and real estate agents provide these home warranties when selling their houses.
These home warranties need to be read very carefully. Home warranties have the most omissions and generally the highest deductible cost to the homeowner.
There are dozens of home warranty companies which do not perform the work themselves. They sub-contract all the work out to independent, generally local, service shops of all types.
The most basic and inevitable need of our daily life. Guessing what we are talking about? Look up yes it is the humble ceiling fan, which saves you from the wrath of summer heat. So how to clean your fan?
There are different types of fans based on its design. There are table fans, pedestal fans, window fans, tower fans, ceiling fans, exhaust fans and the list is exhausting too. All of them work on the same principle and the methods of cleaning is applicable to all kinds.
Cleaning and maintenance of your fan is something you must do. Dirty fans not only look horrible, the dust settled on it can cause allergies too. Regular maintenance of your fan will enhance its life and also reduce your electricity bill as they will always be in a perfect working condition, bearing a shiny look without those disturbing noises.
1. Take a hand vacuum cleaner and vacuum each wing. Before doing this wear glasses to prevent the dust from falling into your eyes.
2. If you do not have a vacuum cleaner then pull in a ladder and take a damp cloth and wipe, go gently on each wing of the fan and wipe dust on both the sides. Apply equal pressure on all the wings.
The best way to do this task is to use a pillow case, dust gets collected inside the case preventing it from dirtying the floor and getting into the furniture. Once you are done you can just reverse it and dust it into a bin.
3. If you have lights on your ceiling fan then take paper towels and spray it with all-purpose cleaner and wipe them. Never spray directly onto hot light bulbs, as it can spark fire.
4. If your fan is way too dusty then go a step ahead and clean the fan thoroughly. Turn off the main electric supply and get hold of a screwdriver.
(i) Unscrew the fan from ceiling and bring it down slowly you might need someone’s help to do it.
(ii) Unscrew the wings and you can wash them in water with a mild cleanser or wipe them with damp cloth. Do not scrub the wings as it may result in warping.
(iii) Make sure to dry the wings properly.
(iv) Dust around the motor with a vacuum spray. Do not use water it can damage the motor.
(v) Fix the blades carefully and screw them tightly. Fix the fan back on to the ceiling.
(vi) Now turn on the fan on a trial basis to be proud of the great job you have done.
* Sometimes the wobble may be because of something very simple. Check the bolts that hold the blades onto the fan motor. The blades can become loose with continued usage, causing undue noise. You can easily fix the problem in no time with a screwdriver.
* The accumulation of dust is one of the common reason for the motor to run hot. One way to limit the dust is to periodically blow out any visible parts of the motor with a can of compressed air.
* Ceiling fans cannot run on light dimmer switches, it can cause damage to the motor, create noise and also limit the life of the fan. Pay attention to the type of switches your fan has.
With proper care and maintenance, your ceiling fans will give you years of carefree comfort. The interesting bit is that ceiling fans are covered under home warranty plans. In case of extended warranty you can get the repair done without shelling out bucks, but unfortunately none of the home warranty plans cover the process of cleaning your fans therefore it is a do-it-yourself job.
Usually, appliances last for several years, mainly when they are properly maintained. Adequate maintenance actually brings down faulty function incidents considerably. When household appliances no longer work, you have two alternatives. You could either substitute it or repair it. In order to make the right decision, many points have to be kept in mind. Firstly, make sure your commercial appliance’s age and warranty period. If the particular warranty period continues, your repair could fee you nothing, or much less than what you suppose to pay otherwise.
Assuming that the warranty period is over and consequently repair shall be pricey, then you certainly must consider a few points. You must begin with obtaining estimates and quotes from no less than four different service providers. If the cost is about 50% of the cost of a new appliance then it is worth getting the repair done. If not, it would make more sense to just upgrade to a newer model. An amazingly old kitchen appliance may give you the situation of hard-to-find spare parts. Your repair guy might have a tough time discovering suitable appliance parts and he could charge extra for that too.
Getting original parts to be substituted by spare alternatives is not a very good idea. There are high chances of making more troubles than answers. Even if it does not prove to be a fix, you will face stumbling blocks later on. Throw away your appliance and get yourself a new one instead. New models from reputable warranty companies tend to be more energy-efficient and reasonable. By employing environmentally friendly commercial appliances in your business, you will also be promoting goodwill and sales among your patrons. It also transforms to lower energy expenses and more savings. The extra cost will surely be justified over the years.
Commercial appliance repair service is normally billed for on hourly basis. Average hourly rates for the first half an hour could vary between $50- $70. After that, for any subsequent moment block the rates will be a few dollars less per half hour. On average, if you are a regular customer of a company, you can anticipate to pay 10$-20$ per hour for time slots from your technician. Lower rates are charged if your appliance is delivered to the provider shop and the technician did not have to go onsite for the repair. Sometimes based on the complexity of the job, the rate will vary. This will usually adjust in benefit of the client as then, the duration of time taken for repair is not of importance. The person will not be anxious about being charged too much.
When calling your repair services call center or offices, bear in mind that ‘overtime calls, i.e. the calls taken after business hours, on holidays, and on weekends, will naturally cost you extra. In fact, charges might even be as much as 25% over. Thus, take thin in account. If the repair is not an emergency, calling for an urgent ‘overtime repair’ is not a very smart idea.
If you are most consumers, you would not even consider buying a new or pre-owned car without some type of warranty. So why would you purchase a home without similar protection? Well, the simple answer is the majority of people just don’t know that home warranties exist. But as home sales are rising, buyers are negotiating for the best possible deals and sellers are seeking for advantages to make their home more pleasing. As a result, home warranties are rapidly becoming part of home sale transactions on both sides.
A typical pre-owned home warranty is a service agreement provided to the sellers and/or buyers all through the sale of a home that protects the home’s essential mechanical systems and appliances. Usually, home warranties protect sellers and new homeowners from repair and/or replacement costs that are not covered by their homeowners’ insurance. While specific coverage differs, some of the most common items covered are the water heater, HVAC system, plumbing and electrical system.
According to Homewyse, in 2012 the average cost to Repair Appliances varies from $184.63 to $242.40 per each appliance.
Your cost depends on material costs and local labor, level of preparation, finishes quality and job complexity.
The cost estimate includes:
The cost estimate does not include:
The following list comprises major work tasks commonly performed during Appliance Maintenance.
Make use of this list to know the timing and sequence of different steps in the Appliance Maintenance project.
The table mentioned below is provided by Homewyse which is a vendor neutral, comprehensive online reference for the home. It is published by competent home design and construction professionals who seek to produce a “level playing field” for trade professionals and consumers. By relevant professional knowledge and expert insight which is easily accessible to the average homeowner, Homewyse facilitates effective decision making in all matters related to home.
|Task||Service Provider||Duration||Do-it-yourself difficulty||Target Cost|
|Install Electric Cooktop||Appliance Service and Repair Technician||1 d||Level 2 – Challenging||$513 – $932|
|Install Gas Cooktop||Appliance Service and Repair Technician||1 d||Level 2 – Challenging||$583 – $1,062|
|Install Trash Compactor||Appliance Service and Repair Technician||1 d||Level 2 – Challenging||$520 – $949|
|Install Range||Appliance Service and Repair Technician||1 d||Level 2 – Challenging||$895 – $1,643|
|Install Vent Hood||Appliance Service and Repair Technician||1 d||Level 2 – Challenging||$445 – $811|
|Install Washing Machine||Appliance Service and Repair Technician||1 d||Level 3 – Complex, Difficult||$695 – $1,273|
|Replace Washing Machine||Appliance Service and Repair Technician||1 d||Level 2 – Challenging||$695 – $1,273|
|Install Refrigerator||Appliance Service and Repair Technician||1 d||Level 2 – Challenging||$70 – $117|
|Install Dishwasher||Plumber||1 d||Level 3 – Complex, Difficult||$488 – $886|
|Repair Appliances||Appliance Service and Repair Technician||1 d||Level 3 – Complex, Difficult||$70 – $117|
|Repair Dishwasher||Appliance Service and Repair Technician||1 d||Level 3 – Complex, Difficult||$70 – $117|
|Repair Dryer||Appliance Service and Repair Technician||1 d||Level 3 – Complex, Difficult||$70 – $117|
|Repair Refrigerator||Appliance Service and Repair Technician||1 d||Level 3 – Complex, Difficult||$70 – $117|
|Replace Built-In Refrigerator||Appliance Service and Repair Technician||1 d||Level 2 – Challenging||$1,820 – $3,354|
|Replace Trash Compactor||Appliance Service and Repair Technician||1 d||Level 2 – Challenging||$520 – $949|
|Install Waste Disposal||Plumber||1 d||Level 2 – Challenging||$105 – $175|
|Install Ice Maker||Plumber||1 d||Level 2 – Challenging||$230 – $407|
|Install Dishwasher||Plumber||1 d||Level 3 – Complex, Difficult||$488 – $886|
|Install Garbage Disposal||Plumber||1 d||Level 3 – Complex, Difficult||$250 – $444|
A patio is an ideal place for basking in the sun on those lazy Sunday brunches or happening evening barbeques, wining and dining. A patio can add that special something to your home, at the same time adding value to your property.
A patio is a outdoor space for dining or recreation that adjoins a residence and is often paved and well decorated.
According to a recent survey conducted by the National Association of Realtors, patios were among the top 10 features that buyers want in a new house. More than half of surveyed buyers said that they would be willing to pay a premium for a house with a patio.
Creating a patio for your home can be engaging and rewarding. You can choose to do it yourself or hire a professional. A patio is one of the most flexible places and you can design it the way you want.
Don’t worry if you’ve never done any hard landscaping before, as our simple guide will lead you through each step of the process. We chose to use slate paving, but the choice of materials are endless (from sandstone to york stone to concrete), with something to suit every budget.
Measure the area you want and dig it at least to 15 cms deep to allow space for mortar and slabs.
Shovel in three inches of crushed stones for base and make it even. This can be done manually or you can rent a machine tamper.
Lay the slabs down and check if you’re happy with the arrangement. Start from the house or a wall or fence if there is one.
Make a mortar mix from five parts building sand to one part cement or use ready-made mortar mix and follow the manufacturer’s instructions. Create a bed of mortar 5 to 8 cm deep and lay slabs on it leaving 1 cm gaps in between for grouting. Tap down the slabs with a lump hammer. Check with a spirit level as you go to ensure the slabs are level or maintaining the fall away from the house. Leave the mortar to set for at least 24 hours or a few days.
Fill in the spaces between the slabs with a mix of three parts building sand to one part cement (or a ready-made mix) using a pointing trowel. If you get any of the mix on the slabs; remove it. Allow to dry for a few days.
A patio is incomplete without elegant furniture, lighting to suit the mood and yes some plants to add some color. Here are some ideas on how you can decorate a patio –
Choose furniture which fits the space you have created in the patio else you end up having no space for a table or chair. You have a wide variety of materials to choose from plastic to wood or iron. Resin, a kind of plastic is the best choice for outdoor furniture. It is weather-resistant and doesn’t absorb heat in the summer and are low on maintenance.
Lighting It sets the mood and makes your patio a much sought after place. Embedded lights on stairs can help you watch your steps during dark nights. Here are few lighting options to consider. Energy efficient lighting tips can be found in the articles section.
Chinese lanterns add glamour and ambience to any space, also are very economical. Make sure to shop for sturdy lamps as cheaper ones get worn out easily.
Flood lights are the best for lighting a patio especially when they are positioned correctly and makes the place look much brighter. But these consume lots of electricity therefore can be used as an alternative.
Solar lights If you are a Mother Nature lover then yes. Even if not then yes, solar lights are the most viable option. These lights tend to sit low to the ground and serve as perimeter lighting, which is perfect for the path to the patio. Solar lights can be a great option for and can be chosen from variety of styles and illuminates for 15 hours and of course saves on your electricity bill.
Spruce up your patio with potted plants, ferns and shrubs and plants which thrive well in your area. You can get creative with the plants you choose and experiment with different colors and texture and use pots of different shape and size. You can also create a pool or a fountain to get closer to the Mother Nature and to add that special touch.
To enjoy your Patio in all weather you have to shield the place. Consider adding a retractable awning or umbrella to your patio space. The shade that these coverings offer will allow you and your family to enjoy your patio comfortably regardless of the weather.
Retractable awning: This modern shelter allows you to shade your porch and keep it dry during a storm, but you can also retract it to enjoy the sun’s rays.
Sail shades: They’re flexible enough that you can attach them to anything from the side of a house to a tree, and they come in many sizes, shapes and colors to fit any budget and style.
One can get carried away by the variety of umbrellas to choose from Auto Tilt Patio Umbrella, Offset Patio Umbrella, 9 Market Umbrella etc. Back-porch classic is both decorative and functional and will give diners a shady respite during mealtimes. For nighttime parties, drape garden lights inside an umbrella for added ambiance.
You can add a fireplace and a barbeque and decorate the place with artifacts to add personality to your space and your patio is done. Home warranty might not be able to cover your patio but insurance will.
Which home would you rather purchase? One that gives you no protection if the air conditioner, plumbing, furnace, garage door openers or dishwater go kaput or one the with a home warranty that fixes any repairs for less than $100?
Majority of buyers would opt for the latter. It is simple to see why many sellers are making home warranty part of the selling contract. Provide yourself a marketplace edge by giving buyers peace of mind.
A home warranty offers the buyer with peace of mind that helps in case there are any problems with major appliances, electrical or home systems. Generally there is a deductible service fee of about $ 60 payable per incident. The cost is generally around $300 to $400 in the form of an annual fee which buys peace of mind and adds value when you’re staring at selling your house.
Additionally, some real estate companies may provide appliance and system protections plans to their customers at no extra charge. Nearly all real estate agencies will offer this service for free, which is generally built into the selling price of the home and brokerage of the realtor.
People who are procuring an older home will buy a warranty if there isn’t one already provided by the seller. This is where having a home warranty for your home is an excellent selling feature. Potential buyers are ought to be impressed if the home is already covered for its appliances and systems.
You can effortlessly find a company that provides appliance protection on our website here or by asking your real estate agent. They will possibly have a list of good home warranty companies that they have used in the past and can advice. Your research also helps choose the best. It’s vital to find out what a company charges along with coverage and other clauses.
You must compare plans based on the categories below.
With a home warranty, you can give buyers with peace of mind allowing them to be assured that the home is worth their investment. This can be an outstanding selling feature for any home, new or old. A home warranty can aid you to sell the home faster, standing higher than other homes for sale on the market that do not come with a home warranty.
Selling your home can be a daunting task. Providing appliance protection should do the trick. This service gives your home buyers the composure they look for.
A few tips for you that will better the chances of finding a buyer for your house.
One such improvement is kitchen remodeling. The key aspects you must bear in mind when remodeling are good floor area, sufficient storage space and other modern features. An agent in your locality will be the best person to advice. You can also look up on the internet for resources.
The most common reasons people go for kitchen remodeling are :
Putting back old kitchen cabinets with solid wood – whether cherry, oak or even something less pricey like pine and kitchen counter tops is a good way to increase the kitchen’s usability and appearance as well as the market value of your home.
Like kitchen remodeling, bathroom remodeling needs the services of a professional contractor.
It is important to have a comprehensive plan and know what type renovation work you want before beginning the project so that code compliance laws are met and essential permits obtained.
Be specific when making the list. Instead of just a lavatory, identify the type. Pedestal lavatories can cost over $300, while a simple wall-hung model can just be under $ 70. Designer toilets will be a little over $ 1,500 while a standard two-piece model will cost under $100. Shop for the finest quality fittings.
Besides, here is a list of 6 tips for selling your home that can change the way home buyers look at your home.
This list gives you a starting point on economical ways to improve your home’s marketability. Now you should walk your home and try to find the little things that could be made cleaner and brighter with very small expenses.
Who wouldn’t want a private swimming pool? If you have one, you sure are lucky! That said, pool maintenance is a task that does require some serious work. In this article, we will give you some really cool tips to keep your pool crystal clear and squeaky clean.
Any pool cleaning veteran would swear on his life that a balanced pH and clean water are the very foundations of a good swimming pool. The general rule is that swimming pools require a basic maintenance routine every week and an extensive one if any of the following mishaps occur-
For those of you who don’t have much time on your hands, we recommend that you consider buying a home warranty. In case a major damage happens, you will be able to save a load of cash if you have an active warranty on your pool. For more information, do look into the coverage of a home warranty plan. Next, we’re going to give you a step-by-step guide on what must be done to keep your pool clean. This is a monthly routine, so you don’t have to worry about doing this every week.
Before you get into the main steps of pool cleaning, skim the debris and any other particulate material floating in the pool. Some materials would float while some get settled at the bottom of the pool. Your first step is to get them all out. Start with scrubbing the walls of the pool and the floor too. Ensure that you use pool manufacturer recommended cleaners and vacuums.
If the pH is incorrect, anybody who takes a dip in the pool could come out with skin rashes. Apart from this, an incorrect pH may also corrode the pool equipment. The parameters that decide a well-balanced pool are the alkalinity and calcium hardness levels. Many pool balancers are available in the market, you just need to follow the instructions given on the pack to get it done.
Known for its disinfectant properties, Chlorine is a chemical which most people are familiar with. It has a strong smell which is often associated with pools and well, hospitals. True to its nature, chlorine acts as a disinfectant in pools. It keeps away bacteria and other potentially harmful microbes, rendering the water safe and pathogen free. There are many ways in which you can chlorinate your pool. Some of the common ones are-
These are available in most department stores and they come with easy-to-follow instructions.
Algae are notorious because if left unchecked, one tiny colony can become an infestation in no time. These microscopic plants are best avoided by using algaecides appropriately. Algaecides are chemical mixtures designed to keep growth of algae in check. Add them to the pool weekly, and that should keep things in control. If you already have an algae invasion, then get products designed to quickly wipe out algae. But please do keep in mind that adding such a chemical would leave your pool unusable for a few days.
Pool maintenance is a task that can be mastered with practice. It only requires following a set of steps precisely. That said, we cannot stress enough on the importance of protecting yourself while you are cleaning your pool. Ensure that you wear gloves and protective clothing while using chemicals and tools. We also advise you to strictly follow all the instructions given with the cleaning chemicals. Any mistake may damage your health as well as the health of those who dive into the pool.
We also have a host of other articles on maintenance of various household appliances and general home cleaning and maintenance. We recommend that you go through them so that you can become a star homeowner who invites the envy of the neighbors. Good luck and happy housekeeping!
Condos are a great substitutes to renting an apartment or possessing a single family home and they have their own unique insurance needs.
Condo Warranty is similar to appliance warranty and provides condominium owners with coverage for repair of major appliances and home systems.
Appliances are intended to make your lives simple. Refrigerators, dishwashers, stoves, and other kitchen compliments not only assist you in doing everyday chores and prepare food faster, but they take some of the monotony out of your day and allow you more free time, as well.
Unluckily appliances, like any other piece of machinery can stop working. When that occurs, instead of saving your time and hassle, your malfunctioning appliance can actually add to your stress. This problem becomes even bigger when the malfunction occurs soon after you buy an appliance. To avoid the extra stress of dealing with faults of a brand new appliance, an appliance warranty is a brilliant tool to have in your corner.
When procuring an appliance, inquire if the appliance is issued by the dealer or if the appliance is covered by a manufacturer’s warranty. Some retail chains and dealers buy appliances from the makers without a manufacturer’s warranty, so as to lower their costs. There are quite a few disadvantages to this.
In case you buy a product for commercial/store use for a boarding house, townhouse, or apartment building with an ordinary kitchen or laundry room, make sure to study the warranty limitations. The majority of domestic appliance warranties are only meant for single family use.
Bear in mind that the majority warranty companies, no matter at what condition your appliance is, they would still repair it than replace it.
Condo Warranties are there to cover you when a trouble happens due to a defect.
A home warranty is planned to cover repair and replacement costs for major home systems and appliances (like wiring, plumbing etc.). Usually, a home warranty is bought as a contract for a year, with either annual, monthly or quarterly payments.
Even if you might have to pay a small deductible when you raise an issue, with a home warranty, you will have less worries about large, unforeseen bills caused by appliance or home system breakdown. When merged with your dealer condo warranty, a home warranty must ensure that, one way or other, if something goes wrong you will be able to manage it without breaking the bank.
Condominium insurance is a unique insurance intended to fit the detailed needs of condo owners. Similar to renters insurance, condo insurance offers liability and personal property protection. However, condo owners need to consider additional coverage for the building based on their condominium association’s master policy and it’s coverage.
So take a look at this article, you can learn about condominium insurance below, and then obtain a free quote to see if it can help you get the coverage you need to defend your residence and your belongings.
You possess a condo and the association has insurance. So what’s the big deal? Well, your condominium association insurance covers the condominium building, commonly owned property, and liability insurance for the association.
Regrettably there are many instances where that insurance policy won’t cover you or your things – like water damage to your living room walls, break in, or someone gets injured by slipping on your wet kitchen floor. For this reason, you need condominium insurance planned specifically for condo or co-op owners.
If something happens to your condo or townhome, it may be up to you to put back things like flooring, drywall, light fixtures, cabinets and more. That’s where condo liability insurance comes into the picture.
Many condominium associations only insure the building’s structure and general areas, typically leaving each unit’s interior construction to the homeowner. However, condo insurance coverage may also vary by state.
All-risk contents coverage insures the possessions inside your home for the most common types of losses. When you have this coverage, your contents are insured for the whole thing, unless it’s particularly excluded from your policy.
Named-Perils coverage includes a catalog of the most common types of items covered under your insurance. It includes theft, fire and water damage. All the items are clearly listed in your policy booklet so that you have a thorough knowledge of what your insurance policy covers.
A standard home policy usually offers for the Actual Cash Value (ACV) replacement of your possessions. This means you only obtain the value of the item, less reduction. For instance, if you bought a TV 5 years ago for $500, you might only receive $100 for it if it were damaged in a fire. Even if it may cost you $600 to substitute that same TV, your insurance would only give you $100.
Many people opted to add the Replacement Value option to their contents coverage. Replacement value coverage means that the contents of your home are insured for the amount it costs to replace them. When you substitute the item(s) with a similar kind and quality, within a definite time, the insurer will pay you what it cost you to replace the item(s). This means if your 5 year – old TV was lost in a fire, you would obtain the full amount it would cost to replace it.
When you replace the item(s) with a similar kind and quality, within a specified time, the insurer will pay you what it cost you to replace the item(s) not what they were actually worth in their used state. This means if your 5 year-old TV was lost in a fire, you would get the full amount it would cost to replace it, even if that is more than you paid for the TV in the first place.
Detached Private Structure. This type of coverage applies to structures that belong to your property, but that are not connected to your primary residence. For example, a separate garage could be integrated under this coverage. There is normally a definite limit to this kind of coverage, but you can always increase that limit by buying additional coverage options.
Additional Living Expenses. If you are compelled to leave your home because of a loss, this coverage pays for your logical and necessary expenses to momentarily live away from home. Hotel and food expenses would be covered under such circumstances. There is generally a limit on this kind of coverage.
Personal Liability. Liability insurance guards you from having to pay damages to people, if you have been found liable for accidentally injuring them or damaging their property.
Voluntary Payments for Medical Expenses. This covers medical costs if someone unintentionally hurts themselves as a result of your personal activities or the way you have kept your building. It also covers injuries caused by resident employees.
Voluntary Payments for Damage to Property. The unintentional physical damage to the property of others is covered. It may also be caused by your pets or animals, or by actions of your resident employees. This kind of coverage would also comprise the intended acts of other insured persons under a certain age.
Improvements and betterments. Investing money to get your residence better increases the worth of your investment. The Improvements and Betterments Protection recompenses you for all the additional you have put into your condominium – on top of what the builder initially provided for you, up to the limit of your replacement value.
For example, your unit was initially furnished with a $5000 medium-grade carpet. You want to upgrade to a high quality carpet, valued at $10,000. The ‘Improvements and Betterments’ protection will guarantee that you obtain the full value of your new carpet in the event of a loss. So if there were a fire, and the builder only gave you $5000 to cover the value of the original carpet, the insurer would give you the remaining $5000.
Supplemental Coverage. Aside from insuring your betterments, you may also need to insure your condominium unit itself. This will ensure that you are sheltered should the corporation’s insurance not fully cover a loss to your unit.
Loss Assessment. A significant feature of a condominium insurance policy is loss assessment. This is when you share liability with others for common property. The insurer will shell out, up to a set limit, your portion of any particular assessment that’s valid under your condominium corporation’s governing rules:
You are likely finding out there are a lot of decisions to make and details to work out before you make a choice.
The home insurance agents recognize that a condominium is not a traditional home. However, it does need homeowners insurance of a particular type. In case you want to protect your condo, ensure to inquire about how condo insurance differs and what it covers.
Homeowners insurance agents who focus on condo insurance are an exceptional resource. In all reality, you are asking for tailored homeowners insurance quotes, when you ask for condo insurance quotes. So there is guarantee that you are receiving what you actually require in a policy.
All agencies or insurance types are shaped equal. Make sure that when you get condo insurance quotes, you follow up with the insurance agents who offered you with the quotes, so you are alert about all the details before you invest in a policy.
Claim denial is an incident in which a home warranty company rejects a customer’s request for repair service. Sometimes customer claims are legit and fully entitled to receive services stated as per the contract. Claim denials are considered to be a major reason behind spats between service contract companies and the customer.
While some claims are denied for genuine reasons, some customers argue that companies deny claims on vague grounds often stating fine print from the contract. Yet, there are also cases where the companies were falsely accused of unfair claim denial solely because the customer failed to understand the terms mentioned in the home service contract.
What we need to understand is that not all companies deny claims unfairly because doing so will severely damage their reputation. So unless there is a valid reason, reputable companies will not deny a customer’s claims randomly.
Let’s take a look at some common reasons for claim denials
This is often the most common reason for denying a claim. Most service contracts only cover a fixed set of appliances and not everything in your house. If your home service contract provider gives you this reason, go check your contract and make sure that the appliance is indeed not covered. In case you find that it is a covered item, place further calls to the company and let them know that the as per the contract, the item is covered.
No home service contract covers an appliance that has become damaged due to lack of maintenance. Regular wear and tear is not caused due to insufficient maintenance. It is the result of prolonged, proper usage. It is the homeowner’s duty to carry out regular maintenance routines, especially for HVAC appliances. However, if you believe that the damage is not caused due to insufficient maintenance, tell the company that you need to get a second opinion from a different contractor.
Home service contract providers often tell the customer that the damage was one that existed even before the contract was signed and hence it will not be covered. There’s hardly anything you can do about such a denial. However, you can avoid chances for such disputes by making sure that you get a home inspection done prior to signing the contract. That way the home inspector’s report will clearly state about what appliance has what damage. If it is not in the report and if the item is covered, you may be entitled to a repair service.
Wear and tear due to regular usage and wear and tear due to rough handling and careless usage can be distinguished quite easily. If the damage was caused due to the latter kind of wear and tear, your claim stands a chance to be denied. In this scenario too, you can ask for a another contractor to get a second opinion if you disagree on the diagnosis.
If the appliance was not properly installed and if it violates the codes laid down for safe use and installation, chances are high that your claim may be denied.
It goes without saying that the policy booklet, the contract and the inspection report, if any, must be preserved carefully. The moment you realise that your claim has been denied, go through your contract and policy document to make sure that the claim is denied purely based on the terms in the contract. If you have a home inspection report go through that too. If you feel that your claim has been unjustly denied, you can call the home service contract company again and press the issue.
You can also visit review websites and post a review about your experience. HomeWarrantyReviews.com has a feature called the Complaint Resolution Program (CRP) which is a platform for companies and their customers to resolve their issues. The customer merely needs to report his negative experience with HomeWarrantyReviews.com, following this, he will be asked if wants to take part is CRP. If he/she chooses to participate in it, the company will be notified about his/her grievance and will be given 30 days to respond/ sort it out. If the company fails to respond or resolve the issue, the customer’s negative review becomes public. Some review websites allows their users to resolve the issues with the contract provider by communicating with them through a specific platform. The advantage of this system is that if the home service provider fails to resolve the issue for the customer or fail to respond within a time frame, the review becomes public, thereby affecting the rating and reputation of the company. Most companies do not want that.
Whatever the reason could be, we request customers to make things clear before they react to a claim denial. It could be that the company is not at fault here and because of a misunderstanding, their name gets tarnished. Most of the unpleasant scenarios can be avoided if the company you pick is reputable. Hence we cannot stress enough on the importance of picking the right company, a good home service contract provider will always put the interests of the customer first. Remember, good communication is often the solution to the biggest of problems.
American Home Shield is one of the most widely acclaimed and also the biggest player in the home warranty industry. With over 40 years of experience in caring for its patrons, AHS has established itself as a leading home protection plan company. While the company is highly reputable, there have been cases where lawsuits were filed against the company and some of them have resulted in AHS agreeing for settlements. One such lawsuit against American Home Shield resulted in a settlement, even though the company did not admit any illegal behavior or liability in the settlement.
During the settlement of two lawsuits against AHS in which the company was accused of paying kickbacks to real estate brokers to promote their service plans, the company was allegedly trying to protect the brokers and agents from any legal responsibilities.
On that subject, American Home Shield, the nation’s largest provider of home warranties, has stated that the payments they made to real estate brokers to market its products, did not violate the Real Estate Settlement Procedures Act, or RESPA.
The company admitted to no wrongdoing but has currently agreed to pay up to $26 million to determine allegations that the payments violated RESPA.
AHS put an optimistic spin on the settlement and released brokers and agents involved from any form of liability. This supported the company’s position as its current broker compensation program; ProConnect is in accordance with RESPA guidelines and regulations.
About 500,000 homebuyers and sellers who procured warranties between May 27, 2008, and March 4, 2011, may be qualified to collect an average of $52 each under the terms of the settlement.
Edleson v. American Home Shield filed a lawsuit in California Superior Court in San Diego in July 2007. The California court declined a proposed settlement of Edleson v. American Home Shield, which would have formed a review desk for homeowners to resubmit earlier denied claims.
The court hearing the Edleson case expressed concern that AHS would have the right to readjudicate claims, and the consumers included in the settlement would be giving up “possible” and “realistic” rights in exchange for the hope that a defendant that has supposedly not acted on good faith” before”, would do so.
After the proposed Edleson settlement was declined, American Home Shield reached tentative settlement in Faught v. American Home Shield, which also called for a review desk for consumers to resubmit claims.
The proposed Faught settlement was opposed by 24 homeowners and by the Texas Attorney General’s Office.
The settlement was the outcome of a class-action lawsuit filed by Laura and Steven Faught against AHS in support of people in the US who procured or were issued a home service contract from AHS on July 24, 2001 throughout October 19, 2009. As part of the agreement, AHS decided to set up a review desk to reflect on claims from settlement class members whose claims were declined during the class period.
The Faught lawsuit suspected that American Home Shield engaged in a pattern and practice of failing to accomplish its contractual responsibilities to its customers. This includes declining to provide repair and replacement services to which its customers were entitled and also inappropriately denying claims in the first year of a customer’s home service contracts for “lack of maintenance” (from the Notice of Class Action and Settlement; faughtclassaction.com).
In spite of entering into a settlement, AHS has denied any misconduct or any legal responsibility. However even this claim no of wrongdoing has not prevented a different lawsuit against them. This lawsuit also alleges that American Home Shield was unsuccessful in paying for its customers’ claims.
The complaint, filed by Brigette and William Guadet, on June 23, 2011 according to The Louisiana Record (June 30, 2011) alleges AHS of denying claims made by class members under grounds of “lack of maintenance, pre-existing condition, or failure to clean, in spite of not examining the appliances when policies are issued.”
In addition to this, the lawsuit alleges that AHS denies claims because of negligible uncleanness, even if external factors were the cause of the appliance’s breakdown. Plaintiffs allege that contractors were given an additional benefit for declining legal claims. The lawsuit claims violation of agreement and fake misrepresentation. Plaintiffs seek damages in excess of $75,000.
In the meantime, consumers of other home warranty companies have filed lawsuits of their own or may be looking into possible lawsuits, suspecting that their claims were denied improperly.
The 2008 Abney v. American Home Shield lawsuit alleged that the company violated the Real Estate Settlement Procedures Act through its compensation of real estate brokers with regard to the sale and marketing of home warranties.
American Home Shield strongly denied the allegations made in the lawsuit and chose to resolve the suit due to the potential costs in defending the case. Details on the resolution of this case are available at www.abneyclassaction.com.
The Bottom Line
According to D. Frank Davis, a lead attorney for consumers in both the Abney and Faught cases, the Faught settlements is more favorable to all the class members in a lot of important ways.
Under Faught, individuals whose rejected claim incurred in the first year of their contract and involved a heating or air conditioning unit are likely to have their claim paid on reconsideration because of specific language in the settlement about the standards to be used by the review desk. All the other claims resubmitted are also likely to be paid this time because of the negotiated penalty provisions.
Well, technically it isn’t winter yet, but like the Starks say – “Winter is coming” and as a homeowner, you better be prepared for it. If you live in a region which sees subzero temperatures and biting winds, your house, and its contents could be in trouble. While snow covered trees and angelic white surroundings may look pretty, the potential damages that cold temperatures can cause to household appliances are no fun. Frozen water in the plumbing, malfunctioning humidifiers and the scariest of them all – broken radiators which means no heat! Many things could go wrong and if that happens in the dead of the winter, you could be in trouble. So before the winter sets in full swing, here’s a checklist of things you must get done.
This step cannot be skipped, more so if your home is 4+ years old. The outdoor pipes face the biggest perils as they can easily have water freeze inside them causing grave damages. Like you learned in school, frozen water expands and this means that the pipe could burst if water has frozen inside it. Needless to stay, a burst pipe is not an ideal thing during Christmas season. Your septic piping may also need your attention. Clogged sewage or burst pipes within the sewage system are nightmares.
To prevent plumbing issues, here are some things that you could do –
Unless you want to freeze to death, inspecting your HVAC unit or even better, getting a professional to check and run a maintenance routine is highly recommended. We have a dedicated HVAC maintenance checklist which you MUST go through to prevent possible breakdowns. Some things you could do to ensure smooth running of your HVAC unit are –
Winters require your heating systems to work overtime and sometimes even round the clock. Even if they are in their best shape, here are some signs that could indicate that the system will become faulty soon. Watch for –
If you see any of these signs, have a professional look at the system right away.
Roofs often get the worst of it as they are constantly exposed. Roof tiles may crack or even break if the climate gets that harsh. Such cracks and breaks allow water to seep into your attic and disturb the temperature of your house, or worse, cause further cracks and breaks. It might be a good idea to get your roof inspected. If your roof sustains extensive damages, the repairs could cost you an average of $600.
Some DIY checks you could do are –
Fireplaces were the first heating arrangements that civilized humans used. They are fairly inexpensive to maintain when compared to HVAC units. Before winter sets in, it might be a good idea to give your fireplace a thorough cleaning. The general rule of thumb is that the fireplace must get cleaned once a year, ideally before the winter. A lot of ash and other fuel residue tends to accumulate within the fireplace which could lead it to function badly.
If you use gas, your fireplace will be considerably cleaner. However, there is always the risk of debris or leaves that fell through. Wood fireplaces may need a routine check from a professional.
Most American homeowners swear that an appliance warranty plan is the best strategy for budget protection. Any unexpected repair cost will get covered as long as the damage was caused due to normal wear and tear. Of course, for damages caused due to natural hazards or perils, you’ll need a homeowner’s insurance and not a home warranty. While both plans are designed to cover repair and replacement costs, homeowners insurance and home warranty are quite different from each other.
During winter, especially in regions where the temperatures drop really low, the risk of appliances getting damaged rises significantly. So, if you are not a home warranty customer already, you may seriously look into getting one. It could help you save thousands of dollars in the long run.
Maintaining a house in good working order, especially when the climate gets harsh, is no easy feat. Which is why you need to go through our home maintenance checklist and execute the steps in it to ensure that you have a warm and cozy winter. The festive season is just around the corner and nothing spoils our mood more than faulty appliances. Keep your home warranty ready and you’ll have your peace of mind. Have a good winter!
The Internal Revenue Service (IRS) allows several home related expenses to be deducted from income tax. While most homeowners enjoy tax exemption on expenses like mortgage interest, property taxes etc, some are unaware whether home warranty premiums are allowed deductions.
When some of our readers approached us with this question, we realized that this could be a common question among homeowners across the country. We have tried to address that concern up to the best of our ability and we hope that this article will clear up any confusion you had about such tax deductions.
As you may know, a home warranty is essentially a service contract that agrees to provide you with discounted repair and replacement services. In the United States of America, homeowners unfortunately do not enjoy the benefit of exemption on a home warranty premium you pay for your residence.
However, warranty premiums can be tax deductible if they are on an income producing building. Which means if your house is something like a home office or if it is a house that you have rented out, the premium you pay towards home warranty will be considered as a deductible expense.
A premium paid towards home warranty is considered as a pre-paid maintenance cost of your home and will therefore be non tax deductible. Which means that repairs and replacement costs, no matter how they are covered, will not be a valuable tax deduction.
If you are a tenant in some house that enjoys the protection of a home warranty plan you pay for, you will not be able to claim exemption on its premium. Only the owner will be able to consider premiums as deductible expense.
Even if you don’t have a home warranty or a home insurance policy, expenses towards repairing and replacing household appliances/ systems will be considered as maintenance costs and hence will not be tax-deductible.
In this case too, if the repair/replacement was needed for an income producing building/home, you may be able to claim an exemption.
Typically, no. IRS allows homeowners to deduct private mortgage interest from federal taxes. But, homeowner’s insurance premiums shall not receive tax exemption. Same applies to flood or title insurance. This is pretty much the way home warranty premiums work. Unless an income is generated by the building like in the case of rental properties or home office, you are out of luck.
IRS allows the following expenses to be considered as tax deductible expenses-
The following are considered as non-exemptible expenses-
We have noticed that it is a common practice to confuse home insurance and home warranty. While homeowner’s Insurance is mandatory for homes with mortgages, a home warranty is usually a choice. Though home warranty premiums may not help you save tax dollars, if your home and its contents are 4+ years old, they are a very wise purchase. Such service contracts provide you with discounted repairs and replacement services if your appliances/systems break down due to normal wear and tear, such damages are typically omitted by homeowner’s insurance. At the end of the day you save more money if you pay premiums for a warranty than if you pay for a repair/replacement job.
If you are worried that a home warranty is going to be expensive, we earnestly encourage you to use our website to get a free quote. You’ll be surprised to find that there are some companies that sell warranty products at compelling prices, some even at zero deductible rates. You can also browse through our site to compare plans and their features. While you are at it, don’t forget to take a look at top ten companies and our annual home warranty award winners!
Our readers are welcome to reach out to us should they have any questions or concerns. We hope that you found this article helpful and informative. Thank you!
New York Attorney General has sued National Home Protection home warranty company and its principals over an alleged warranty scheme that defrauded consumers in New York and other states out of hundreds of thousands of dollars. The AG froze all of National Home Protection’s assets, so customers who got ripped off, can hopefully at least get back some money.
The company has been shut down for the time being and banned from selling again in New York until their problems are settled and they register with the State Insurance Department. If you signed up for a home warranty through National Home Protection, file a complaint with the Attorney General’s office.
The New York attorney general says a New York City-based home warranty company cheated customers in at least 32 states out of hundreds of thousands of dollars. Their home warranty plans promise to repair or replace household appliances and systems if they break. Pending court action, the company can’t sell any more out of New York.
Consumers with complaints against National Home Protection are urged to contact the Attorney General’s Consumer Frauds hotline at 800-771-7755. New York consumers may also contact their local regional office. Contact information about the Attorney General’s regional offices can be found online at www.oag.state.ny.us.
There are few home warranty companies that do not charge service trade fee or “deductible”. If you are looking for such companies, please read on. Please note that we do not endorse any of these companies.
IMPORTANT: To read most recent list of companies that offer Zero dollar deductible, please visit our Home Warranty Plan Comparison section and sort the companies by Deductible (low to high)
Following are the home service contract companies that offer zero deductible as of this writing:
As a website dedicated to offering honest information about the various matters related to Home Warranty, we have collected the feedback of several appliance warranty customers in the form of reviews. Please check out our tool to find top rated home warranty companies in your area. There, you can sort through the various companies based on their premium amount, deductible amount, ratings and total reviews.
In an insurance policy, a deductible is the sum of money paid by the insured party before an insurer will pay any expenses. It is usually a fixed amount and is a part of most policies covering losses to the policy holder and must be paid by the insured before the insurance company’s own coverage plan begins.
For example, an auto insurance policy may bear a $500 deductible. If the owner of a car hits another car by mistake while parking and both drivers decide that the loss is minimal, he or she would pay the repair bill $500 out of his own pocket. Insurance companies would not support a claim for such small damages. Based on the incident, the deductible may apply per covered incident, or per year. For policies where we can’t restrict the incidences, the deductible is usually applied per year.
An insurance premium is the definite amount of money charged by insurance firms for active coverage. Cost of a premium can differ widely for the same service, which is why experts strongly suggest getting several quotes before committing to an insurance policy. Insurance brokers or agents takes basic information from people and evaluate an insurance premium estimate depending on the answers and other factors.
The lowest quoted cost on a premium may be the better deal, but the level of coverage may also be lesser. Insurance premium is mainly based on statistics, while people’s habits and history can cause the premium to be lower or higher. For example, a 22 year old male looking for car insurance for a sports car can often predict a higher insurance premium than a 45-year old woman driving a mid-size sedan. Both may perhaps have excellent working records, but the insurance company considers the younger driver in faster car to be at more risk for accidents. Thus, the premium quotes will be clearly different.
In general, a faster car will cost more to insure, just because the owners of those vehicles tend to drive faster. The amount of a deductible is typically related to the amount of premium charged by the insurers. That is, higher deductible amount are usually related with lower premium rate and vice versa. Try to find stability between reasonably priced premiums and a fair deductible when buying insurance.
The Illinois department of insurance issued a warning earlier this year to its residents to avoid a Florida based home warranty company Arkidus Home Protection, Inc. Arkidus had been unlawfully advertising home warranty services via the internet to residents of Illinois and in many cases there were documented incidents of these consumers who purchased a warranty not receiving the services promised to them.
The company and its owner, Reinaldo “Ray” Berges has previously been served with a cease and desist order by the Illinois Department of insurance, but continued offering service coverage for household appliances and major system components. The company had its headquarters in Miami though more recent reports suggest that office has been closed for many months.
The company has not been granted any certificate of authority to sell insurance or home warranties to the consumers in the state of Illinois, thus the cease and desist order from that state was issued. This unfortunately may not help recover the money lost by the Illinois consumers who purchased home warranties, also referred to as residential service contracts or home service contracts.
According to the Better Business Bureau (BBB), The consumers have launched over 245 complaints against the company in last three years. BBB indicates in its report that Arkidus conducted its business through a website, www.theahp.net.
BBB is a non- profit organization more than a 100 years old functioning in U.S and Canada. It collects and provides free business reliability reviews on over 4 million businesses. The BBB plays the role of an intermediary between businesses and consumers. Though it is not mandatory for any firm to get accreditation from BBB such accreditation is sought by some companies in order to build faith in their business. Arkidus is not accredited by BBB and thus the amount of involvement BBB may have had with Arkidus’s customers would have been limited to collecting and documenting complaints and then reporting complaints to the company. For further recourse consumers who have complaints against Arkidus would likely need legal representation or assistance from consumer protection entities.
According to publicly available information Illinois’s Department of insurance has also received many complaints from customers of Arkidus who allege they have been tricked by that company and were unable to obtain reimbursements for their claims or their canceled contracts.
The complaints from consumers are also publicly available on various websites. One such complaint posted online was from Jose. E who is a resident of Florida. In his post he said, “This Company is a scam. I started service with them in May, and they will not honor their policy. I keep getting calls from companies that were dispatched by them. I needed a plumber and an electrician, and both have been harassing me with the remainder of their bill, even though I paid my deductible. Do not purchase anything from this company, they are frauds.”
Arkidus appears to have ceased doing business but for a time the company was successful persuading customers to pay long term contract fees, in some cases for terms of two years or more. These customers spent thousands of dollars in some cases, all of which they now face losing forever. If significant legal action isn’t taken against the owner of the company it is unlikely that consumers will receive any reimbursement and this whole story will end sadly. Hence we warn our readers to be cautious about choosing home warranty companies with very little business history, no matter how positive the early reviews of the company may be.
If you suspect you are dealing with the wrong people already or believe you too have been scammed do not delay making a formal report to the appropriate agency or agencies. Both at the state and national level in the U.S. there are free and fast ways to make your voice heard when you feel you’ve been misled by a business or been the victim of a scam. The important thing is to act quickly and not give up if you feel your complaint is being documented but not being acted upon.
Ever wondered what is the difference between home warranty and homeowners insurance ? Are they not same? Let’s find answers for these questions.
While home warranty and home insurance products may come across as same, they are totally different. The coverage, cost, terms and conditions vary greatly. Home insurance is compulsory in some cases whereas home warranty is a recommended choice.
Home warranty offers protection for your major appliances, as well as plumbing and electrical units. It covers the cost of repairing or replacing major household appliances in case they break down, provided they meet the terms and conditions of the home service contract.
Home insurance covers your home in the event of damage due to natural calamity or man-made disasters and offers you liability protection from lawsuits in case of a third party involvement. If your neighbor came visiting you and accidentally fell and got injured and decides to sue you, then home insurance will take care of the claims. Home insurance is mandatory if you have a mortgage on your home.
Items covered by a home warranty may vary by company and plan, but typically includes the following items:
In case of an uncertain event like fire, theft, vandalism, or certain natural disasters, the cost of damages are covered. It also covers your personal items and gives you liability protection. Liability insurance will protect you from lawsuits in the event that someone is injured on your property. Home insurance will only insure your personal items in case they are stolen or ruined in a disaster. Repairs and replacements due to wear and tear are not covered.
The insurance policy varies depending on your state of residence and type of policy, but generally it will cover the following.
Home is the most prized and cherished possession any individual can have and nobody anticipates damages to this, therefore a home insurance provides you the following benefits when you cover your home.
A standard warranty runs $300 to $500 for a year of protection, which covers the cost of repairing or replacing a home’s major systems and appliances. Home sellers typically pick up the tab for the first year of coverage. Extended coverage plans for pools, spas and washers and dryers can be purchased at an extra cost.
Insurance cost varies from state to state and depends on the extent of coverage and the location of the property but a standard insurance can cost any homeowners insurance is between $300 and $1,000.
When you are planning to buy a home warranty, make sure that you do some research. Check our home warranty reviews section that provides pricing, comparison, quotes and consumer reviews of all major companies. When you are getting price quotes, inquire to look over a sample policy. Bear in mind to understand the entire policy, together with the fine print.
Another advantage of home warranty policy is that it is transferable. That means when you sell the house the warranty would be passed to the new owner. This has proved to be a well-liked feature amongst home buyers as homes having home warranties are selling at increased prices and in much shorter times. This in itself could make it sensible to get a home warranty policy.
When a covered appliance breaks down you need to contact your warranty company. A warranty company already has business ties with different service vendors. They will in turn contact a service repairman to come to your home and repair the appliance. The repairman will fix the item or recommend replacing it. The service repairman will bill your warranty company directly, but you have to pay a service charge when the repair person visits your home.
With any kind of insurance, it is always a good idea to shop around and evaluate benefits and prices as most insurance companies will provide you a policy discount. Ensure you read the policy before writing a check and ask any queries that you have in mind.
So, the conclusion is that home warranty and insurance are complementary to each other. You can choose to protect everything you own, provided you can afford to. Keep in mind that these insurance products do cost a bit more, but compared to the benefits they provide and the peace of mind you get, it seems like a very small amount. Insure your home as well as buy a home warranty all within your budget.
Some of the above mentioned cases can be avoided, while some cannot be. In situations where the company says that the home warranty claim cannot be processed because the item is not covered or that the damage is due to improper maintenance, refer to your contract. If they say that the damage was pre-existing, there is hardly a way out unless you had a home inspection performed prior to purchasing the contract. Likewise for damages due to crimes and natural hazards, one needs a home insurance and not a home warranty. Which is one reason why you cannot replace a home appliance warranty with a home insurance or vice versa.
So now the question is, how do we avoid such incidents of claim denial? Simple, pick a great company. Like the infographic tells us, you have to do rigorous research before picking a warranty provider. This website could be a starting point for that. We have reviews of tens of thousands of customers which can help you choose a reputable company. Once that is done, review the contract or policy document thoroughly. Once you feel that the company is good and that the contract is drawn up pretty decently, you may proceed with the purchase.
In spite of all the research that you did and picking a good company, if you still find that your claims are being denied unjustly, you can dispute the claim. This basically means to go behind them until they set things right and make amends. It’s quite easy, follow the steps mentioned in the last section. Keep in mind that companies won’t give up that easy, so you make have to make multiple calls to convey your point. While disputing claims, keep the following in mind:
Chances are high that the company will come around and accept you claim.
In the past year, over 32 real estate agents have helped consumers with more than 13 residential home sales in Houston, Texas. The oil slump can’t hold back Houston’s top realtors as the Houston’s housing market is performing extremely well. Sales have ranged in price from $99,000 to $697,500. Now, homes are available for a variety of price ranges – from about $300,000 near downtown to around $2 million in the best neighborhoods along the city’s Energy Corridor.
Below is the list of Houston’s leading realtors based on their gross sales volume in dollar amounts, the number of transactions and the average price of homes sold-
A Houston-area native, Paige is a proficient and successful partner in any residential real estate transaction. Armed with an in-depth knowledge of Houston real estate market, her skills have marked her as one of the most preferred agents in Houston. With a customer-focused approach, Paige is dedicated to providing brilliant service. After graduation from Baylor University, Paige started her career as a marketing consultant, developing individually-tailored marketing techniques for her customers. She now employs those cutting-edge skills to aid her customers to buy and sell their homes with the least amount of stress. She monitors clients through every aspect of learning about Houston, relocating to Houston and ensuring hassle-free real estate transaction.
Paige Martin, a Broker Associate with Keller Williams Realty and owner of HoustonProperties.com is ranked as one of the top residential real estate agents across the world. Her website HoustonProperties.com features more than 1,200 pages of Houston real estate information on over 40,000 properties for sale in addition to a large number of resources for home sellers. Paige has successfully sold over $250million of homes and is listed among the Top 25 Residential Realtors in Houston for the second consecutive year in terms of individual gross sales and transactions. She has also been featured on TV and in several publications including:
Paige has been a consistent top producing agent and has won over 198 awards since 2003 for excellence in customer satisfaction. Her recent awards include:
Whether you are buying or selling a home, James Krueger can help you win at real estate! He is the owner of Kruger Real Estate which was founded on a corporate philosophy of devoted commitment to quality service. Upon graduating from Texas A&M University as an All-American archer and economics major, Kruger worked as a business analyst for Reliant and then a consultant for an executive compensation firm. He believes that excellent real estate service begins with personalization – with one agent who listens, learns your goals and helps you accomplish them. Krueger Real Estate agents are backed by a team that keeps you informed through every step of the home buying or selling process while giving you unmatched customer service. As a former litigation, Kruger understands legal contracts and also knows how to value a property to get you the best possible deal.
Krueger Real Estate mainly serves the Greater Houston Area and surrounding areas including Katy, Cypress, Sugar Land, The Woodlands, Spring, and Tomball. Krueger is pioneering an exclusive model to improve agent retention and client satisfaction. Unlike many traditional brokerage firms, Krueger Real Estate pays attention to duties that a realtor at other brokerages is responsible for. It provides a distinct advantage in maximizing the exposure of their listing through online, print, and social media outlets. The local experts assure you of professional photographs, proficient staging and presentation guidance, an online marketing blitz campaign and thorough listing descriptions that will make your home noticeable from the rest. “If I can create an amazing place to work, I can attract super high-quality agents who attract high-quality clients,” said Krueger, broker and owner of Krueger Real Estate.
Krueger Real Estate employs a client relation management system to keep an eye on its clients and has a call center that tries to answer all new client queries within 3 minutes. Krueger’s client focused approach seems to be working and has helped him grow his company. In 2013, Krueger started with 8 agents who made $27 million in home sales and the following year he grew his company to 15 agents who brokered $46 million in home transactions. In 2015, with 45 agents, Krueger’s firm collectively made $65 million in closed and pending sales. Krueger aims to crack $100 million in sales in 2016 and has a dream to grow his company to 250 agents, expand to the four major Texas markets and break the $1 billion home sales mark by 2020.
“I always wanted a fun, cool place to work, so when I started my company, I wanted to make it an enjoyable place to work,” Krueger said. “A company isn’t anything without the people you have on board.”
Krueger has been named the Top Producer by the Houston Association of Realtors for 2012 and 2013. He is a certified negotiation expert (CNE) and has the following Professional Real Estate Memberships:
Founder of The Loken Group, Lance Loken strives to be the excellent real estate service provider in all 9 countries in the Greater Houston Area. The group is backed by a team of specialists out of the Keller Williams Realty Signature office who serves real estate buyers, sellers, and investors to make your home buying and selling experience pleasant. By employing the newest technologies, business tactics, and market research, the agents are able to list your home strategically and effectively. Most importantly, the agents listen and find solutions that are tailored to you.
Prior to entering real estate, Loken worked as a C-Level executive for firms like The Wood Group Renewable Energy Service, Francesca’s Collections Inc., and C.D. Johnson Companies which helped him shape the way he approaches real estate. “My goal is to always be your real estate SOLUTION – whether that means helping you buy, sell, invest or rent,” Loken said. Loken is an Accredited Luxury Home Specialist (ALHS) and a Certified Luxury Home Marketing Specialist (CLHMS).
From paperwork to marketing, The Loken Group stand by you in every step of the way, replying to your questions and offering exceptional customer service. They were recently named:
The team of specialists at The Loken Group manages clients in all price ranges. Their luxury division is backed by proficient luxury experts who help clients in more than $650,000 price range.
Alfonso Parodi obtained a Business Administration degree with a Minor in Marketing from University of Lima, Peru. Thereafter, he moved to Houston and lived there for 9 years where he had the opportunity to attain extensive experience and training in Sales including residential lending, real estate, retail, networking, recruiting, marketing and primarily customer service. Parodi is competitive and goal-oriented with a passion for delivering outstanding customer service. In just 3 years, Parodi has become a top agent at Realty Associates in Houston which is home to more than 1800 agents.
Alfonso founded Team Parodi in 2013 whose focus is to bring the best group of agents together with a support team of award winning interior designers, experienced inspectors, proficient photographers and all other experts to help customers buy and sell their homes in areas such as Cypress, Houston, Humble, Katy, Tomball and more. Team Parodi at Real Associates is proud of each purchase or sale that aids clients to attain their dream home!
The technology savvy agents employ the cutting-edge tools and programs to give their clients an advantage in the fast moving and super competitive market for a successful transaction. Currently, Team Parodi is backed by 6 key members and will be adding more agents to be better prepared for a very busy future market. Whether buying or selling a home, Team Prodi is ready to be your trusted resource.
Owing to his excellent communication skills and expertise, Parodi is selected and recommended time and again by his clients. He has been awarded in the top 1% Buyer Agents among 25,000 agents and also:
With professional accomplishments in both experience and education, Parodi maintains the Certified Residential Specialist (CRS) Designee. Presently, less than 3% of 1 million agents carry this designation. Besides, he has the following Professional Real Estate Memberships:
Angela Pipes is a Licensed Real Estate Agent at Redfin Corporation with 17+ years in the Houston Real Estate market representing both sellers and buyers. She is passionate about the relationship with her clients which helps her adapt to their needs and receive referrals. Whether you are a first-time buyer or an accomplished seller, Pipes would guide you through the entire process. A member of the Houston Association of REALTORS, Pipes has established a reputation for being proficient in handling land sales, new construction, investment properties and resales including historic homes in the Heights, Montrose and other neighborhoods such as Katy, Memorial, Spring Branch, Clear Lake, and Galveston.
Pipes mainly works in the urban communities of Houston and keeps abreast of real estate developments and attending community events. She is an advocate for those interested in building better practices, smart growth and energy efficiency. Pipes works closely with her clients to make sure every sale closes without a hitch. She is always accessible, prompt, and thorough with her clients’ requests and her quick response time with emails is appreciated as well.
Angela Pipes has been qualified as a Top Production REALTOR based on 2016 second quarter listing side number of MLS sales transactions of the Houston Association of REALTORS. This certification is given to those who aim to maintain the highest ethical standards and whose production ranks among the highest number transactions within HAR’s 25,000 brokers and agents. As a Certified Negotiation Expert (CNE) and Accredited Luxury Homes Specialist (ALHS), Pipes has proven to be a valuable asset to Redfin and to her clients.
An offshoot of Home Warranty, Structural Warranty is a legal agreement between the builder of the home and you – the owner. Structural Warranty functions basically in the case of new homes, wherein the builder assures that the home he has built will have no structural defects for a period of ten years after its construction. His claim is covered by the company which offers him warranty coverage for the building, at times additionally including workmanship and internal systems.
The system functions just like Insurance, but covers defects which may occur due to age and wear and tear, not natural disasters or unforeseen circumstances. Like the Home Warranty covers the items in a home – its appliances, wiring and plumbing systems, interiors etc. – Structural Warranty covers elements like the foundation, girders and beams, roofing, and flooring.
Before the purchase of a home, it is advised for either the new owner, seller or realtor to purchase Home Warranty, in order to establish a relationship of trust and confidence in both parties involved. Just as a Home Warranty leaves the new owner knowing that his home and all that is in it is secure for at least a year after its purchase, Structural Warranty establishes the same sense of security in the buyer of a new home straight from a builder.
It is rather simple – all structural defects are now to be fixed by the company that the Warranty has been purchased from or by the builder offering the warranty himself, and as long as the terms and conditions are met, neither the builder nor the new owner is liable.
We see before our eyes appliances, electrical systems and plumbing leaks occur every once in awhile – but most of the time structural damage is noticeable only after it is too late. Given that large parts of the US are known to have soil that expands with seasonal changes, statistics show that more than 25% of all buildings in the country experience some kind of structural damage during the first decade of their life, almost 10% of this being major and often irreversible.
It isn’t always about how reputable the builder is, in fact, the more reliable the builder the higher the chances are of them investing in warranty for the homes they have built. Years after a deal is signed, sealed and delivered, a matter like soil expansion that is out of the hands of both the parties can spring up, making Structural Warranty the only way to guard against massive expenditure out of your own pocket in the future. Studies show that the warranty is most often claimed 4 to 7 years after a home is built to completion.
The chances of an individual investing a sum as large as the cost of a home in anything else in his or her lifetime is very slim, making this purchase one that could develop complications if not done right. Builder’s offering Structural Warranty for the home they have built can not only assure the buyer of their expertise but also give them a legal document to go back to in case frivolous lawsuits or complaints are lodged. Like in the case of any two-way agreement, responsibilities, terms, and conditions are clearly outlined.
If a third party company is used to establish a warranty, then any complaints, disputes or discussions will be handled by them – until the point of reconciliation. This saves time and discomfort for both parties involved, especially the builder.
If you happen to be a builder with larger holdings or varied properties and houses, then the value of each building is sure to increase if Structural Warranty is added to the mix. Use it as a marketing strategy, one that is true to every word and will help you build lasting relationships with your clients.
Structural Warranty functions according to the guidelines of the Housing and Urban Development department of the US, which stipulates particular criteria within which a company must cover damages. Larger builders may choose to provide their own Structural Warranty schemes to the buyer, while builders without a department to handle such claims or smaller building agencies may choose to use third-party warranty companies. Even more so than Home Warranty claims and structures, Structural Warranty coverage and insurance backing vary drastically from builder to builder and company to company. If you happen to be a part of the decision making of who to choose, make sure you do your research and pick a coverage that is extensive and appropriate to your home.
If you go through a Structural Warranty contract or guide, you will notice one important point – the extremely specific and near legal language used to describe what that particular company or builder covers. Structural Warranty owes this specificity to regulations set by the Housing and Urban Development Department of the US, as well as to the builders’ need to protect themselves from futile claims and lawsuits.
Due to each Structural Warranty being unique (much like Home Warranties state-wise laws), we will get into what the warranty covers in general. Know that this isn’t ironclad, and you have to cross check the terms and conditions with your builder.
As a whole, third-party companies offer two kinds of warranty, one which accounts for any damage to the structure of the building from the moment the deal is closed between the builder and buyer. The second stipulates that the company will only begin to cover damage to the home 3 to 4 years post the sale, implying that any structural damage before then is up to the builder to fix.
Each company usually has a base plan and other additional perks that you can choose to opt for.
The basic coverage usually covers the following:
The last of these, load bearing partitions, are often accompanied by the additional coverage of non-load bearing partitions. These claims are almost purely cosmetic, and certain Structural Warranty companies do assure the fixing of these, keeping in mind the original material integrity of the home.
Integral to any warranty and insurance difference, Structural Warranty doesn’t cover any damage due to natural disaster, accidents or unforeseen circumstances; anything that is covered under insurance, basically.
Lastly, any structures added to the original home – an extension, outhouse and detached garage space for examples – would not be covered. If the need is felt, the builder could then purchase a separate Structural Home Improvement Warranty.
Individual state laws in the US tackle Structural Warranty in different ways, making the cost different in each state as well. On an average, if the basic warranty is purchased, then it shouldn’t cost more than 1% of the purchase cost of the home. In most states which are positioned in low-risk areas (minimal soil expansion, etc.), the price is only about half a percent of the home’s price, whereas in high-risk zones the price can go up to 1.5% to 2%.
When looked at it in terms of a median example, while Structural Warranty would cost anywhere between $500 and $1500 for ten years, the repair in case of structural damage could be between $50,000 and $100,000; Structural Warranty being about one percent of the estimated repair budget.
Any homeowner who lives in Nevada and is shopping for a home warranty, also called a home service contract, will want to read this article. Why? Well, for one reason, HomeWarrantyReviews.com is one of the most established sources of reviews for home warranty companies in the U.S. And thanks to the thousands and thousands of reviews we’ve compiled on our website, we can offer you fair and objective input regarding the home warranty companies in Nevada that are doing the best job serving their customers needs.
So, which home warranty companies are the best in the state of Nevada? Let’s find out!
Nevada is famous for its desert areas, Las Vegas in particular. And with desert days you can expect several months of daily average temperatures above one hundred degrees Fahrenheit. As if the desert days are not challenging enough, desert nights can be a bit extreme too, temperatures plummeting from the daytime highs. When you push your heating and cooling systems to their limits you increase wear and tear and increase the chance of encountering frequent problems. With this in mind, Nevada homeowners should carefully consider their choices of home warranty companies, assuming the heating and cooling systems will be covered items.
All of the top companies listed in this article have something in common. That common thread is quality service. No matter what appliances and systems you want covered, you primarily want to know that when something breaks down it will be fixed quickly and correctly. And for that reason you can compare one common aspect of every home warranty company, that being the performance of the company when claims are filed by customers. To do that though you need real, accurate, fair feedback from homeowners like you. Luckily, you’re at the right place for that.
HomeWarrantyReviews.com ranks companies based on user feedback, not based on how much companies pay for advertising. You will find that some other websites that rank home warranty companies do not do the same thing. If you trust a website that ranks companies arbitrarily then you may not be happy with the end result. What we can offer you below is a list of top companies that service the state of Nevada, a list that is only influenced by consumers just like you, people with direct experience filing claims with these companies. So get out your paper and pen. Here is the list of top companies servicing Nevada, based on the current standings on our website.
You may be familiar with these companies. All of these companies advertise their services widely. But what makes them so successful in Nevada? As is the case with nearly any home warranty company, a great repair contractor can make the customer experience much better than it would have been if the home warranty company didn’t have a good network of qualified contractors in the area. Home warranty companies have to work very hard to make sure they have enough contractors in each area they service. The companies also must maintain records of customer satisfaction in order to ensure that the contractors are making their customers happy with each service call. So how do these companies do with regard to customer satisfaction if you focus on the contractors doing the work? Read on to find out.
When you have as many customers as American Home Shield does it becomes a challenge to keep them all happy. But AHS has clearly made a good impression on its customers in recent months. Just scanning through the top ten reviews we found nine of ten reviews with very high ratings and very positive comments specifically mentioned the great service from the repair contractors. In several reviews the comments referred to AHS’s consistent delivery of timely, high quality repair services via the company’s contractor network. And that network is one of the strongest reasons for choosing a top rated company like AHS.
In eight of ten recent reviews we examined we found specific praise for the repair technicians that The Home Service Club sent to their customers’ homes. Though there were two negative reviews in the group we looked at, overall the customer reviews were consistently positive, particularly with regard to the time it took to receive repair services and the accuracy and cleanliness of the work performed. HSC appears to have good contractors working with them in most areas they service and appears to have a very efficient process for dispatching contractors when claims come in.
In the case of Select Home Warranty we found that nearly all of the recent reviews had extremely positive things to say about the claims process, from start to finish. One reviewer contacted Select after 11:00 pm to report an air conditioning problem and had a contractor at his home within five hours. Another reviewer wrote that Select Home Warranty authorized the use of a repair contractor the homeowner picked, instead of asking the homeowner to wait for a network technician to be available. Stories like this are not altogether unheard of in the home warranty industry, but when you see consistently high praise for the timeliness of repair contractors arriving after claims are filed you know you are looking at an exceptional company. And that is the type of company that every homeowner wants to do business with.
Landmark Home Warranty has some very happy customers. Looking through the company’s recent reviews we noticed that all are positive and nearly every one gives specific credit to the customer service representatives and the repair contractors. This sort of applause from customers is important, because when you see that most reviewers are happy with the entire claims process, end to end, you can expect that the company will deliver similar results to any of its customers.
Home Warranty of America, like the other companies listed here, has a very high rate of great review comments and ratings. With only a handful of negative reviews among the many that we examined it’s not surprising that HWA consistently ranks among the top companies on our website in most of the areas the company services. Many of the reviewers indicated that they were introduced to HWA’s services by a real estate professional. In some cases real estate professionals themselves took the time to write reviews. So it’s possible that many of our Nevada readers can learn first hand about HWA from the professionals helping them list or purchase their houses.
Being great in any business means being great consistently. What our readers can take away from this article is the benefit of thousands of consumers’ personal experiences. Knowing that so many customers in Nevada have been pleased with the service from these companies, readers can be much more confident in considering any one of these companies for a home service contract. But don’t just take our word for it. While you’re on our website we encourage you to read reviews about home warranty companies, not only for these ones but for any others you may be considering.