People commonly confuse homeowner’s insurance and house warranties.
Homeowner’s insurance can cover major destruction such as fires, hail, and property crimes, however a house warranty venues a contract between a homeowner and a house warranty dealer.
This contract gives the homeowner benefits of discounted repair and replacement services appliances, including electrical, a/c, air duct, water heaters, washers, dryers, refrigerators, and dishwashers. If you do not have a house warranty, you can go directly to a contractor of your option for service. If you have a house warranty, the dealer your warranty is through has contracts with identifiable approved repair providers. Because of this, when something breaks down, the homeowner calls the house warranty dealer. Then, the dealer sends one of their approved providers to come and inspect the problem. The house warranty dealer is essentially the liaison between the buyer and the repair provider. A house warranty is not a 100% solution to all of your house repairs. Some repairs will not be covered by the house warranty dealer because it is not in the contract or they do not offer coverage for that repair. It is vital for the homeowner to think what is being covered in their contract and spend additional money on coverages that are deemed pressing. There are several contracts that can be bought. 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 house warranty dealer that you choose. The property’s age and size influence the cost of the house warranty. Within basic policy guesthouses are not covered, but in a separate contract and paying an additional fee, they can. A normal house warranty can officially cost $350-$600 per year with about $50-$100 for each repair or repair visit but prices depend on the warranty dealer 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 study the great print.