Even homes that are cared for have things that break down or need repairs. No matter the appliance, system, or other aspects of the home, things wear out and break even with proper care and maintenance. Homeowners can protect themselves from the high cost of repairs with whole house warranty insurance.
What Is a Home Warranty?
A home warranty is a service contract for the various appliances, systems, and other aspects of the house. When a covered item fails or breaks down, the homeowners can have the item repaired or replaced for a set fee.
How Does a Home Warranty Work?
Typically, when something breaks down in a home, homeowners contact a service provider to have the problem analyzed and repaired. The cost of the service call and the repairs are required at the time of service. These service calls can be pretty expensive and, many times, the cost of the repair is unknown until the technician is at the home.
With a home warranty, homeowners simply contact their warranty provider. The provider will then dispatch a local contractor to the home. Homeowners pay a set fee to the contractor when they arrive. The contractor will then evaluate the problem and make any repairs necessary at no additional cost. This service provides homeowners savings on repairs.
What Does a Home Warranty Cover?
A home warranty can be customized to suit the needs of the homeowner. However, there are two standard types of coverage most homeowners receive. The first is appliance coverage. This option provides coverage for the major appliances of a home’s kitchen. These covered appliances include the stove, oven, dishwasher, refrigerator, and built-in microwave.
There is also a home systems policy available for homeowners. This policy provides coverage for the home’s main systems. The main systems include the plumbing, heating system, air conditioning unit, and electrical system in the home.
Homeowners can add other appliances to their policy, such as additional refrigerators, washers and dryers, or even a freezer. For those with a pool or spa, a home warranty can provide coverage for these as well. There are even options available to provide coverage for roof leaks.
What is Not Covered by a Home Warranty?
Home warranties only cover items that break down due to normal usage. Homeowners need to provide proper maintenance for the various aspects of their homes. Regular tune-ups and inspections for the home systems and proper care of the appliances are necessary to ensure everything continues to work as it should.
Unfortunately, if an item breaks down due to misuse or not receiving proper maintenance, the repair may not be covered by the warranty. In addition, if the covered item breaks down due to an unexpected incident, such as fire, flood, or other unexpected events, the warranty will not provide coverage. These types of incidents are normally covered by a homeowner’s insurance policy.
How Does a Home Warranty Differ from Homeowner’s Insurance?
Many people confuse a home warranty with homeowner’s insurance. However, these are two very different types of coverage. As discussed, a home warranty provides protection when things break down due to normal usage. Homeowner’s insurance provides coverage when something unexpected occurs.
Storms, fires, floods, and other natural events can cause serious damage to the home and its contents. A lightning strike could short out the home’s electrical system. A flood could damage the home’s kitchen appliances. When the unexpected occurs, a homeowner’s insurance policy provides coverage to replace or repair those damaged items.
Combining a home warranty and homeowner’s insurance can be beneficial for homeowners. The coverage can provide complete protection for the home. Whether there is a problem due to normal wear and tear or because of a natural disaster, homeowners are protected when the appropriate insurance and warranty are in place.