Your home warranty’s worth depends greatly on the statement in the insurance contract. There are two kinds of warranties. It is the new home warranty and the existing home warranty. In a new home, many builders will offer a homebuyer a warranty, which is usually good for ten years coverage on the home structure. Some have their own warranties while still others use a third party company. Whichever you choose, the home warranty defines items that are covered and outlines a method for repair requests should there be problems.
A buyer or seller of an existing home may buy a one-year warranty that is the same as an extended contract of service. The home warranty normally costs from $350 to $600 and generally covers only the electrical and mechanical components of your home such as the furnace, appliances and the air conditioning. If something is not working, the company will then dispatch a local contractor to fix it and the homeowner will be required to pay a minimal amount only for repairs done. If the repair falls under the warranty coverage, then it is the only expense to be incurred.
You might wonder if home warranties are worth the investment. A home warranty is not automatically a blanket protection and could sometimes be quite tricky. There may be a misunderstanding of what is actually covered and what the homeowner believes to be covered. For instance, a one-year warranty of an existing house may cover problems on the hot-water heater but do not cover anything that is caused by rust or poor maintenance. Hence, when the water heater gives in and the repair person finds rust, you may be charged to pay the bill yourself.
The key factor is to read and comprehend the contract to find out the extent of the coverage, its duration, claims and be aware if there are deadlines. As a homeowner, make sure that you know the entire coverage. Many warranty companies do not cover those that are outside the foundation of the home, which includes the septic tank. Despite additional septic tank coverage, most companies do not cover the cost of replacement of the septic system or the leach field. Septic coverage is only for a year and is non-renewable.
Furthermore, home warranties do not cover the vents, ducting and heating. It only covers the basics such as heaters, home appliances and plumbing that is within the house. Deciding what kind of policy to buy is a bit confusing and as a homeowner, you should consider carefully. The coverage differs from company to company. Make sure to inquire of a good one from satisfied customers and ask for a comprehensive list of coverage. Ensure that you are aware of your rights when making claims.
The importance and worth of a home warranty will depend on the choices and priorities of a homeowner. If you believe that the coverage meets your needs, then purchasing one is a good choice. Another thing to put into consideration is the renewal of the home warranty after it has expired. As a homeowner, be careful to weigh your options before you purchase.
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