When a person buys a home, they expect to have some time before repairs will be needed. After all the inspections and checking the information provided by the seller, this is not an unreasonable assumption. Unfortunately, even properly cared for and well-maintained systems and appliances can break down. Fortunately, a home warranty can provide protection in these situations.
What is a Home Warranty?
A home warranty is a service contract for the various systems and appliances in a home. It provides discounted repair and replacement services for covered items. The 2-10 Home Buyers Warranties provide coverage for homeowners upon purchasing a home.
A home warranty is similar to an extended car warranty. An extended car warranty provides coverage for repairs on certain aspects of the vehicle. However, vehicle owners must stay up to date with regular service visits and maintenance to continue coverage. The same is necessary for a home warranty. Regular maintenance and upkeep must be provided for all appliances and systems covered under the warranty.
How Does a Home Warranty Work?
Home warranties provide discounts on repairs and replacements of covered systems and appliances that break down due to normal wear and tear. When a covered item has a problem, homeowners can simply call the provider or visit their website to schedule a service call.
The warranty provider will then contact one of their local repair contractors and send them to the home. Once the contractor arrives, the homeowner pays the set service fee for the visit. The contractor then either makes the repair or schedules a replacement of the covered item.
What is Covered?
The typical home warranty is often a combination of the home’s major appliances and systems. However, homeowners can choose to get only an appliance or system’s warranty, but often combine the two options to provide better coverage for their homes.
The basic appliance contract covers the home’s basic kitchen appliances. This includes the refrigerator, stove/oven, dishwasher, and built-in microwave. The home’s systems coverage option protects the heating and cooling systems of the home as well as the plumbing, water heater, and electrical system.
Homeowners can also choose to add additional coverage to the warranty. This is often done to provide additional protection or to cover systems and appliances outside of the typical warranty. For example, additional coverage can be added for septic tanks, extra freezers, washers and dryers, and even pool or spa equipment. These contracts can be adjusted to meet the needs of any homeowner.
Does Coverage Start Immediately?
When purchasing a home with a warranty or renewing a home warranty, coverage begins immediately. This allows new homeowners the ability to have repairs performed if they have an issue the first day they move in. This protection can help save them money when their budget is tight from the recent home purchase.
For those who purchase a home warranty outside of buying a home, the company may require a waiting period. This waiting period is typically 30 days. After this waiting period, homeowners can begin using the benefits of the warranty.
A home warranty can save homeowners hundreds or even thousands of dollars in repairs and replacements during the life of the contract. However, there are some limitations to the services provided, such as pre-existing conditions not being covered or being unable to choose whether the item will be repaired or replaced.
As with anything, it is important for homeowners to read and understand the terms of their warranty. This will ensure they can reap the benefits without worry and keep their home in proper working order.
