What is a home warranty

People commonly confuse homeowner’s insurance and home warranties. Homeowner’s insurance can cover major damage such as fires, hail, and property crimes. A home warranty places a contract between a homeowner and a home warranty company. This contract gives the homeowner benefits of discounted repair and replacement services appliances, including electrical, air conditioning, ductwork, water heaters, washers, dryers, refrigerators, and dishwashers. If you don’t have a home warranty, you can go directly to a contractor of your choice for service. If you have a home warranty, the company your warranty is through has contracts with specific approved service providers. Because of this, when something breaks down, the homeowner calls the home warranty company. Then, the company sends one of their approved providers to come and inspect the problem. The home warranty company is essentially the liaison between the customer and the service provider. A home warranty is not a 100% solution to all of your home repairs. Some repairs will not be covered by the home warranty company because it is not in the contract or they don’t offer coverage for that repair. It is vital for the homeowner to know what is being covered in their contract and spend additional money on coverages that are deemed important. There are several contracts that can be purchased. Make sure you understand what kind you are purchasing. Home warranties normally cost hundreds of dollars a year and can either be paid upfront or in installments depending on the home warranty company that you choose. The property’s age and size influence the cost of the home warranty. Within basic policy guesthouses are not covered, but in a separate contract and paying an additional fee, they can. A normal home warranty can typically cost $350-$600 per year with about $50-$100 for each repair or service visit but prices depend on the warranty company and location within the country. Make sure you educate yourself on all warranty information that you can before you sign any papers and make sure to read the fine print.

 

 

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