What is a Home Warranty?
A Home warranty is a service contract for homes that covers replacement and repair costs of appliances in a home. The home warranty typically covers appliances and equipment such as dishwashers, refrigerators, plumbing systems, or electrical wiring that can fail due to normal use over an extended period of time. Typically the coverage provided in a home warranty can significantly vary across different warranty companies. However, home warranty contracts are rarely all inclusive regarding home repairs.
The basic coverage of a home warranty includes plumbing, heating, and electrical systems and as well as major appliances found in a home such as dishwashers, ovens, and refrigerators. Many home warranty companies may charge for additional coverage for other appliances like washers and dryers. A home buyer should carefully read the home warranty contract in order to understand the coverage, exclusions, and limitations.
Who Buys the Home Warranty?
Depending on the local customs, the either the seller or the buyer of the home may purchase the home warranty for the home. In many locations, it is typical for the seller to purchase the home warranty because it is beneficial for him/her to do so. Doing so means the buyer will not have to call the seller again if something happens. In other locations, real estate agents will purchase the home warranty for the home buyer as a gift after the closing of the home
What is the Cost of a Home Warranty?
A home warranty is typically inexpensive and will usually range between $250 and $400, depending on how extensive the coverage is. Home warranty companies occasionally run special sales by either discounting the policy or offering additional coverage without increasing the price. The policy for a home warranty paid in advance for a year, and then they can expire or be renewed.
How Does a Home Warranty Work?
Although specific details for a home warranty vary on a plan-to-plan basis, the basic features of most of them are typically the same. When an appliance or home system stops working, the home owner calls the home warranty company, who then calls a contracted provider to look at the issue. The provider will make an appointment with the home owner and then comes at the appointed time to examine and fix the problem. In the case that the issue cannot be resolved by the provider at that time, the company providing the home warranty will pay to install and replace the appliance or system.
What is Not Covered in the Home Warranty?
There are many appliances that are not covered under a home warranty such as outdoor items like sprinklers, broken faucets, pools and spas, permit fees, or a haul-away. It is important to carefully look at the terms of the home warranty to see exactly what is included and what might need to be supplemented.
What if the Home Warranty Will Not Cover Something?
There are times where a service provider will not accept a claim. If this happens or if you are not happy with the service that was provided, it is best to call your real estate agent and discuss the situation. If the real estate agent has a good working relationship with the home warranty company representative that is covering your home, he/she may be able to obtain some sort of remedy.