Home Warranty Coverage – Make Sure These 5 Things Are Covered

What is home warranty coverage? It is basically similar to homeowner’s insurance, however it provides some coverage that regular homeowner’s insurance won’t cover. For instance, home warranty covers household appliances such as stoves, dryers, refrigerators and dishwashers. If any of these things break down, your warranty will fix them. Contractors who build homes will also usually offer free coverage for a certain amount of time.

Nowadays, you can get cheap home warranty packages everywhere; warranty insurance is even being bought from an existing home. Some real estate agents offer the home sellers; original warranties with the home they are selling, in order to make their home more appealing to buyers. The home warranty will give new homeowners peace of mind, since they will know that all the major household appliances and systems will be covered, and thus they will feel more comfortable in buying that home. Everyday life is so unpredictable; it’s great having a safety net in case your home has some unexpected problems. It doesn’t matter if your home is brand new or 100 years old, almost any home out there can be covered by a warranty.

Every home warranty company will offer you different prices and cover different areas, but before you sign a contract you should make sure the following 5 essential things are covered.

1. Plumbing Systems–Plumbing problems are very expensive and difficult to fix yourself. This should include pipes, sinks and toilets.

2. Electric systems–Every house is wired differently and commonly break down, it is much easier to hire an expert than to try to solve the problem by yourself.

3. Heating–The heating system of most homes will start to fail after about 10 years and can be quite costly.

4. Cooling–Try to get a warranty which will cover your air conditioners or central air.

5. Spas and Swimming Pools–Your spa and swimming pool help add to the value of your home so you should maintain them and make sure that any problems are fixed quickly.

Every home and every situation is different. The home warranty service you choose is dependent on your own specific situation. The above list may not be the best list for your current home. Remember to consider the age of your home appliances as well as the age of your home before buying coverage. Warranty coverage will save you tons of money in the long run and is definitely worth it!

Do You Own A Home? Five Questions About Home Warranty Services

If you are a homeowner, you may need home warranty services. Various home warranty companies provide service contracts that can help you pay for appliance repair or replacement. There are many things you should know before you sign your agreement:

What Do Home Warranty Services Protect?

Most standard policies cover repair costs of your HVAC system, plumbing, electrical wiring, garage doors, kitchen appliances, water heaters, and other major components of your home. If you have an in-ground swimming pool or sauna, you can purchase add-on coverage for the maintenance of these items. You can also buy additional coverage for a well pump or duplicate appliances.

What Is Not Covered?

Typically, pre-existing conditions are not protected by home warranty services. Neither are items still under a manufacturer’s guarantee, repairs due to homeowner negligence, or problems caused by mold. In addition, repairs resulting from natural causes, such as storm damage, are not covered through this type of warranty. In general, these warranties are not meant to serve as additional homeowners insurance. Instead, they serve as a way to help with general wear and tear on your home, within the scope of the policy.

What Is A “Pre-Existing Condition?”

When the home is inspected before the purchase of the agreement, certain items will be checked to determine if they are in proper working order. The inspector will work with the home warranty services provider to decide what issues are pre-existing in your home. This could include a dishwasher that is not in working order or a plumbing system that has yet to be repaired.

What If Appliances Are Older?

In general, as long as appliances are in good working order, there is no age restriction for protection. It is the responsibility of the homeowner to take care and properly maintain appliances during the period of coverage.

How Is A Claim Filed?

This will depend on your individual provider, but you can typically call the toll-free number located in your service paperwork to file a claim. You should be assigned an account or agreement number that you will need to provide to the service company. Make sure you contact your provider before you begin work on your home to make sure that it is reimbursable. There may be times when your provider will want to discuss repair options with your contractor before the work begins.

As a homeowner, it is a good idea to look into companies that provide home warranty services. Warranties can be a great comfort to many homeowners. However, it is important to know what is and what is not handled in your agreement. It is important that you do all you can to maintain your home in order to get the most from your agreement.

Home Sellers: Offer a Home Warranty to Help Sell Your Home

Seller’s Warranty

Now that the real estate market is cooling somewhat, you’ll more likely to find your competitive home sellers offering a seller’s warranty. But what exactly is a seller’s warranty, and how can it help?

In short, a seller’s warranty provides added assurance that any repairs to major appliances, plumbing, and other home systems will be covered by the seller within a specified time period after the home is purchased, excluding a typical deductible of $50-60. Seller’s warranties are always offered by builders of new homes, but they’re becoming increasingly popular as sales tools for older homes, as well. For the seller, the cost is about $300-400, but it can be well worthwhile, especially if it means a quicker sale of their home.

There are some real estate companies that offer seller’s warranties at no cost to their sellers during the home’s listing period, such as Home Warranty of America, but the most agencies require their sellers to pay for the warranty if it’s something they’d like to offer potential buyers–with the cost often built into the sales price.

Home Buyer’s Warranty

A similar home warranty can be purchased by buyers, as well. The typical $300-400 cost is similar to what a seller would pay for similar coverage, and a buyer’s warranty covers the same things as a seller’s warranty. The main difference is that a buyer’s warranty typically begins on the date of closing and continues for a one-year period after that. Another difference: the buyer’s warranty can be renewed annually.

Besides Home Warranty of America, there are a number of other companies that offer home warranties for sellers and buyers. Those companies include: 2-10 Warranty, American Millennium (which offers a policy to specifically cover hidden structural or pest damage to a home), and Home Warranty Plans, but you’ll probably find others if you do an Internet search or check with your local real estate broker.

As is the case with any consumer product or service, it’s always wise to do some research before you decide whether a seller’s or buyer’s warranty is something you want to consider. Then, if you’ve decided that such a warranty is worthwhile in your particular situation, make sure to compare the various programs to see which ones are available in your area, what they specifically cover, their overall cost, the amount of their deductible, anything that might be excluded from the program, and any other variables before you commit. Remember, you can offer the warranty, but if you consider an offer less than full price, you can ask the buyers to provide their own warranty.

Providing this service adds to your home’s overall appeal to home shoppers. A home warranty gives your home buyers the peace of mind they seek.

Copyright © 2006 Jeanette J. Fisher