How Does a Home Warranty Work?
Signing up for a home warranty can be as easy as choosing a plan on a reputable company’s website and getting a quote. When something goes wrong, you simply submit a claim — typically either online or by phone.
The best home warranty companies have relationships with technicians who are within their network. It’s important to compare home warranty companies and choose the right company with a large network of technicians in your area.
Your provider will get in touch with one of their technicians and send them out to check on your claim and repair the appliance or system in need. If it can’t be repaired, it may even be replaced as part of your plan. Home warranty companies will specify how quickly they can dispatch someone to your home, and they may
Home Warranty Coverage
Most plans are divided into systems, appliances, and combo plans.
Systems Plans
Systems plans offer coverage of various systems in your home. These can include air conditioning, heating, plumbing, electrical, garbage disposals, and more.
Appliance Plans
Home appliance insurance packages you can get which also include major household appliances, such as refrigerators, dryers, washers, ovens, dishwashers, stoves, built-in microwaves, etc.
Combo Plans
A combo plan offers a combination of systems and appliances warranty coverage.
Optional Add-Ons
Along with the basic warranty package, there will be optional add-ons that you can include at extra cost. Typical add-ons that may be offered include coverage for swimming pools, spas, septic tanks, and well pumps.
Pros
Like most things, there are pros and cons associated with even the best home warranties. The main benefit is that you are protecting yourself from any unforeseen and expensive repair bills. Here is a list of some of the best home warranty advantages:
1. Being prepared — because things always break eventually
Systems and appliances tend to be expensive to repair and replace. It is an ideal way to protect yourself if you don’t have a lot of rainy day funds when things go wrong. Remember as well that something always goes wrong eventually, whether it’s the washing machine breaking or the air conditioning not cooling your home in the middle of summer. As much as we wish these things would last forever without a problem, that’s just not realistic.
2. No need to try to fix appliances yourself or spend time finding a trustworthy service professional
Having a home warranty also saves you the hassle of having to attempt the repairs yourself or try a professional to do them for you. The company can send out their own technician who they know and trust to fix any problematic appliances or systems.
3. Peace of mind when buying a home that comes with appliances
If you are buying a house that comes with appliances that were previously used, then having home appliance insurance can give you additional peace of mind. People tend to feel more at ease with brand new appliances and trust that they’ll work properly for a long time. That’s just not so when you’re buying a home with older appliances.
4. Save big on repair fees
Finally, the home warranty prices are relatively inexpensive when you look at the standard cost of repairing or replacing appliances. According to the website Fixr, the national average cost for repairing a washing machine is $200. A new washing machine can easily cost upwards of $500. Paying just a $50 service fee for a technician to come out and repair your washer when you have a home warranty plan sounds like a much better option.
5. Guarantees on workmanship
Workmanship guarantees mean that you don’t have to worry about paying for shoddy work that will just cost you more in the long run. Choice Home Warranty offers 90-day guarantees on parts. When you compare home warranties, it’s always a good idea to check whether they offer guarantees and for how long.
6. 24/7 help
Sometimes when things go wrong at home — especially when expensive systems or appliances appear to break — we panic. It’s even worse if a problem occurs at night or on a weekend, in which case you could be waiting for hours to days in order to get a hold of someone to help you. That’s not the case when you have a home warranty. The best home warranty companies offer 24/7 claims assistance so you’ll never feel alone.
7. It can help you sell your home.
That’s right, a home warranty isn’t just for new home buyers. Someone who is selling their home can also benefit. Selling a house with a home warranty included will increase the confidence of potential buyers who are interested in your house. After you sell the house, you can transfer the warranty to the buyer.
Cons
1. You need to keep maintenance records.
One of the main disadvantages of getting an American home warranty is that you will not get protection if there has not been proper maintenance for certain items. There is a bit of a gray area with regards to what exactly is defined as proper maintenance and this can lead to disputes between the policy issuer and holder.
Some of the more unscrupulous types of home warranty companies may include improper maintenance clauses in an attempt to discredit likely valid claims. The contractor coming to your home to assess the situation may also disagree over what is proper maintenance.
The solution: If you’re buying a home with appliances that have been used by a previous owner, you should ask them for maintenance records. This way, you can prove proper upkeep and care to any home warranty company that questions how the appliance in question was maintained.
2. Need to use in-network technicians.
Some people may prefer to use their own service professionals to carry out repairs, but certain companies require the use of their in-network technicians.
The solution: Choose a home warranty company that allows for out-of-network technicians.
3. Fewer choices during the repair process.
Finally, there may be instances whereby you cannot choose the specific brand or model of replacement, despite this replacement being supposed to be of similar quality.
The solution: Most home warranty companies offer guarantees with their repairs, so if you’re worried that a new part is not going to be “good enough,” you don’t have to be. Your appliance or system will be taken care of.
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