Home warranties help protect the critical devices in your home in the long run. They are incredibly cost-effective and come with several other benefits for homeowners. But you should know what does a home warranty cover before going ahead and purchasing one.
Most home warranty plans cover conventional systems and appliances such as your refrigerator, dishwasher, air conditioner, ceiling fans, microwave ovens, doorbells, garage door openers, etc. Depending on the age of your systems and appliances, you must take a call on which plan to choose. This detailed post will explore lots more about home warranty coverage, the types of homes that require a home warranty, the different types of home warranties, the economics of warranties, etc.
In general, home warranty plans can be classified in terms of their coverage. Let’s take a look at some essential aspects of home warranty plans and the coverage they provide.
A home warranty is beneficial to protect the devices in new homes, older homes, and properties on rent. Home warranties are extremely helpful in safeguarding the older systems and appliances in your property. Since these devices are subject to break downs quite often, a warranty plan is ideal for protecting them.
One of the main reasons a home warranty can be beneficial is because they help you save money. Repairing devices is an expensive prospect, which can cost you thousands of dollars just to make minor fixes. Why go through that burden when you can buy a home warranty and save money in the long run. The table below marks the type of home warranty plan you can opt for, considering your home’s age.
|Type of Home||Older Home||New Home||Rental Property|
|What plan to choose?||Combo Plan (American Home Shield)||Basic Plan (Choice Home Warranty)||Gold Plan (Total Home Protection)|
|Service Call Fee||$75+||$85||$70|
Most of the systems and appliances in older homes are aged, making it susceptible to wear-and-tear. Getting a home warranty policy for your older home will help you protect these devices for an extended period at affordable costs. You must get a home warranty plan for homes aged five years or more. Here are some key points stating how home warranties help your older homes:
Customers can file a claim online or through the phone, within a few minutes. Once your claim is submitted, the home warranty company assigns a trained technician quickly to resolve the issue.
You could opt for a comprehensive plan if you want complete coverage, or on the other hand, if you prefer to cover a specific set of devices, a basic or moderate plan will be of value.
With a home warranty policy in place, experienced technicians hand-picked by the tenured home warranty companies fix your devices.
A home warranty policy for your new home depends on your requirements. If the new home you are moving into accommodates older systems and appliances, it is prudent to look for a home warranty plan. Here are some key points you should know about home warranties for your new homes:
Home warranties are boon if you are moving to a new locality, as you need not stress yourself to find trustworthy technicians when the need arises.
Opt for a ‘Build Your Own Plan’ for your new home, and cover only particular devices.
The peace of mind knowing that your devices get protected in the long run.
As a landlord, it is important to consider protecting your systems and appliances. Landlords must consider protecting their devices because tenants may not take care of the systems and devices as if it’s their own. We’ve noted down a few important points you should keep in mind if you own a rental property and are looking for a warranty package.
You can transfer your home warranty policy anytime, in case you are selling your property.
If your tenant informs you about a malfunctioning device, file a home warranty claim at your convenience.
Landlords can save on the cost of home warranties as they may be tax-deductible.
It is also crucial that you know how to buy a home warranty and make the right decision. This exciting infographic will help you understand how to go about the journey.
Several homeowners nowadays have a lot of expectations from home warranty companies and are quite disappointed if their expectations are not met. As a homeowner looking to purchase a home warranty, you must understand home warranties come with certain advantages and limitations, like any other financial services in the market.
This mismatch in expectations has led many homeowners to write negative reviews about home warranty companies. Home warranty companies provide services depending on the plan you choose and its cost. It comes down to how well the customers research the plans and the coverage they opt for. Let us take a closer look at what you should expect while buying a home warranty plan.
When you purchase your home warranty policy, you receive coverage for one year. All the systems and appliances mentioned in your contract get covered under the policy.
Most home warranty companies offer 24/7 customer support nowadays. If you have any queries, complaints, or positive feedback regarding your coverage, call up customer care.
Home warranty companies offer customers several discounts on different occasions. These discounts may be provided at the time of buying a policy, or in between your coverage term.
Some home warranty plans offer a more extensive coverage amount for your systems and appliances, and some offer a lesser limit. Check the coverage limit before opting for a policy.
When any of your covered devices starts malfunctioning, you file a home warranty claim. You are charged each time you submit a home warranty claim.
Depending on a particular company, older devices with pre-existing may or maybe get under the contract. Read the agreement carefully before signing up.
Not all parts of your systems and appliances get covered under the home warranty policy. Only specific components of an item are covered under a home warranty contract.
If a particular device cannot be repaired, it is replaced with a new system or appliance. But this depends on your device’s condition and an assessment made by the company.
If an item is recently repaired or replaced and starts malfunctioning again, the home warranty company may not fix the device. Check your contract to understand coverage caps.
There are different types of home warranties available in the market today. These warranties are designed to suit the varying needs of homeowners at various stages of their homeownership process. You can buy a home warranty at any time as long as it is the correct one.
There are three types of home warranties available, depending on your needs. We’ve listed them out for you so that you get a clear picture.
This home warranty can be bought by existing homeowners only. Homeowners can buy this warranty if they are currently residing in a property. This policy covers all your conventional systems and appliances and provides repairs and replacements whenever needed.
Must only be bought by people who are going to buy a home. The warranty is designed in such a way to meet the requirements of new homeowners only. A homebuyers’ home warranty only covers those devices that were fixed before a property is purchased.
This warranty is used by home sellers who plan to sell their properties. Buying a seller’s home warranty can be very beneficial, as it helps sellers get an idea of what devices were faulty before the home inspection. A seller’s warranty also increases the likelihood of your asset getting sold faster.
The points mentioned below will help you get a comprehensive idea about the benefits of home warranty plans:
You must understand the economics of home warranties and how the home warranty companies function before signing up for your policy. The points mentioned below will give you better clarity about the monetary aspects of a home warranty package.
After reading through, you must be wondering whether you should go ahead with a home warranty. The simple answer to that question depends on your situation. Home Warranties will be a worthwhile investment if the following are your expectations:
There are several home warranty companies in the market, and therefore identifying the ones that offer value for the buck is tricky. Here are some companies that have managed to please most of its customers by offering services that matched their expectations. The below-mentioned top home warranty companies offer customers several plans to choose from and a range of other benefits:
This company is a popular prospect among homeowners in the country. The company covers almost all systems and appliances in an American home. With over 11 years of industry experience and a vast contractor network of well-experienced technicians, Choice Home Warranty is a good buy.
The right time to buy a home warranty policy depends on the type of property you reside in and your devices’ age. Also, a lot depends on your current circumstances and whether your devices need that extra layer of protection.
But one thing is for sure. Home warranties guarantee you peace of mind also increase the value of your property. If you have a good or bad experience with a home warranty company, please share your review. It helps other homeowners make a choice they don’t regret.