Hello there! You have landed at the right place if you want to find out as much as you can about Home Warranties. Let’s not tarry, we’ll tell you all that you need to know about Home Warranty or Appliance Warranty.
Home Warranty sounds like a great way to protect yourself from financial strains incurred during repairs and replacements of your household appliances. You have to understand that Home Warranty is not the same as Homeowner’s Insurance nor does it replace a Homeowner’s Insurance. There are a lot of things you need to consider before you purchase Appliance Warranty.
Appliance Warranty is a kind of insurance that you purchase for covering the major appliances and systems in your home. It is a contract between the homeowner and the insurance company stating that it agrees to provide discounted repairs and replacements for insured devices, provided certain conditions are true.
The Homeowner’s Insurance covers damages caused due to crimes, natural hazards and water damage also to some extent. Whereas the Appliance Warranty Insurance covers damages that are caused due to regular wear and tear. Almost all your major appliances and systems are covered. You can purchase additional coverage if you wish.
Now let’s move on to the specifics.
Here’s the list of components that are commonly covered in standard plans. This is only a basic idea, you will have to read your contract to find out exact details about coverage.
|Air conditioning||Plumbing stoppages||Telephone system|
|Telephone wiring||Plumbing system||Electrical system|
|Attic and exhaust fans||Sump pump||Instant Hot Water dispenser|
|Central heating system||Hot water pump||Built-in-dishwasher|
|Heating and duct work||Bathroom whirlpool motor pump||Cooktops|
|Smoke detectors||Ceiling fans||Garbage disposal|
Here’s another list that tells you about the components that are usually omitted from basic coverage. However, as mentioned before you can always purchase additional coverage.
|Faucet repairs||Spa or pools||Hot tubs|
|Hauling away debris||Hauling away old devices||Outdoor sprinklers|
|Outdoor water systems||Combo ceiling fans||Second Air conditioner|
|Second freezer/ fridge||Food spoilage||Ice maker & wine cooler|
|Well pump||Central vacuum||Limited roof leak|
|Septic system||Septic tank pumping||Standalone freezer|
|Home entertainment||Office package||Central AC unit|
|Washing machine.||Heating system||Additional spa|
The advantages of purchasing a Home Warranty insurance are many. If your appliances are fairly old (over 4 years) the chances are that you may reap many benefits from an Appliance Warranty plan.
The prominent advantages are as follows
Appliance warranty plans costs around a few hundred dollars per year. They are not that expensive unless you are looking for a plan that has extensive coverage. These are the things that you will have to pay for.
It is often between $400 – $1000. This can vary depending upon the coverage you choose.
The cost of premium does not vary depending on the age of the house unless it is a brand new one. Also, unless the area of the property is above 5000 square feet, the premium will not vary much.
In addition to the premium, you will be expected to pay a service charge often called as the Deductible, each time you raise an issue. The amount for this is usually around $50.
A technician shall be sent over to your house to evaluate and repair the damages. The fee for the technician must be paid by you as well. In certain cases, more than one technician may have to inspect your device, in that case you may have to pay separate fee for each contractor. You will have to pay the Technicians fee irrespective of whether the repair was performed or not.
The working is very simple. Every time you approach the Insurance company with a service request, they will take down details and request you to pay the deductible. These Insurance companies often maintain business ties with vendors/contractors in the appliance repair industry. So when you request for a service, the Insurance company in turn calls up a contractor and places your request with him. The contractor then calls you up to fix an appointment and later comes to your home.
Once he arrives, he will examine your damaged device and fix the issues if they are minor. If major repairs are needed, the Technician informs the insurance company and requests approval. If they are approved, the technician will perform them and fix your appliance.
In certain cases, appliances may need replacement of individual parts. If this happens the insurance company will procure them for you and send it along with a technician to fix the device. In certain other cases, the technician may declare that your device cannot be repaired. The insurance company will then replace your broken device with a brand new one. This feature depends on the Insurance plan you purchased.
As much as it looks appealing, it is not a perfect arrangement. Home Warranties do have a few drawbacks although they can be resolved.
This is easier than you think. All you have to do is ensure that you do the following.
Home warranties are a great way to insure your household appliances. They often prove to be highly helpful in protecting the budget when an appliance breaks down. If your appliances are over four years old, it is suggested that you purchase an appliance warranty plan. It is also suggested that you get your home inspected before you purchase Appliance Warranty.