Home warranties can provide peace of mind while helping to avoid unexpected repairs bills.
However, homeowners must select their plan with care. Read through the contract to understand what’s included and excluded as well as any actions which will void its warranty.
Coverage for Appliances
Home warranty companies typically cover appliances like refrigerators, ovens, dishwashers and washers as well as heating/cooling systems, plumbing fixtures and electrical switches and outlets. Depending on the plan selected by their providers they may cover additional items as well.
Most providers allow homeowners to file service requests online or by phone; response time varies based on which company accepts it; when accepted, a technician will assess the issue and decide whether repair or replacement are required for an appliance or system.
As a new homeowner, one way you can prepare for unexpected repairs is by purchasing a home warranty plan. However, it’s essential that you compare plans until you find one that suits both your budget and needs – plus one with an efficient claims process!
NerdWallet’s home warranty comparison tool helps you assess costs, coverage options, service fees, claims processes as well as current customer reviews on NerdWallet.
Coverage for Systems
Home warranties differ from homeowners insurance in that they usually only cover damage or failure caused by normal wear and tear to appliances and systems like roofing in your home, as well as paying for repairs or replacement if your manufacturer’s warranty expires.
Meenan notes that many home warranty providers provide appliance and system-specific plans, as well as combination, plans with increasing coverage as you move up through each plan tier.
When choosing your provider, Meenan advises reading sample contracts carefully as well as checking customer reviews and testimonials to make an informed decision.
Consumer agencies receive thousands of complaints annually regarding home warranty companies, alleging claims are denied or improperly performed and making it hard to reach live individuals.
A home warranty should not be seen as a replacement for routine maintenance; its scope does not extend to issues discovered during an inspection or disclosed by sellers, nor repairs for items that require permits such as sprinkler systems and outdoor plumbing; nor will its coverage extend to replacement parts purchased used prior to purchasing a new home.
Coverage for Multiple Systems
Home systems and appliances wear out over time, so a home warranty can help offset the costs associated with replacing these items when they fail due to wear-and-tear. For homeowners, this can make these services worthwhile investments.
When your air conditioner stops cooling or the pilot light keeps going out, call a home warranty company for a set service fee and they will send someone directly to your house to diagnose and resolve the problem – saving both time and stress as well as potential future costly repairs.
Using this coverage may save both money and hassle down the line!
When choosing a home warranty policy, be sure to identify all exclusions, limitations, and coverage limits in the contract. In addition, compare each home warranty company’s service fees for specific issues.
Ideally, the best providers should offer clear contracts with clearly outlined terms, conditions, and clauses so there won’t be any unexpected surprises when filing claims.
Coverage for Structural Components
Home warranties often cover structural components of homes such as roof framing, foundations and beams – providing builders and realtors with an important selling point.
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Before buying a home warranty plan, it’s wise to conduct extensive research. Be wary of online search results that appear as fake rankings for companies with generic domain names; for example, one may appear at the top of multiple search results yet have poor ratings on Better Business Bureau’s site.
Be aware of the coverage limitations. Depending on your plan, warranties can have different payout limitations annually or simply cover certain repairs up to an overall ceiling; you should ensure it fits both your needs and budget.