Interest in home warranties has been on the rise in recent years, which is great news for homeowners. Despite the increase in interest, though, some people still have questions that are going unanswered. Before reaching out to a home systems warranty specialist, homeowners can find answers to some of their peers’ most frequently asked questions about home warranties below.
What is a Home Warranty?
A home warranty is a type of contract that covers the repair or replacement of certain appliances and systems within a home. In some cases, it may also apply to structural components, but these types of home warranties are usually limited to new homes.
Is a Home Warranty a Type of Insurance?
A home warranty is not a type of insurance, although it functions in a similar way. Homeowners’ insurance covers damage from things like natural disasters and break-ins, whereas home warranties cover regular wear and tear.
What Does a Home Warranty Cover?
A home warranty could cover just a few large kitchen appliances, or it could apply to the entire home’s appliances and support systems. Because there are many types of home warranty plans, homeowners should investigate their options carefully before purchasing one and speak with an expert in the field if they are unsure which coverage option will be the best fit.
How Does a Home Warranty Work?
A home warranty works by covering appliance or support system breakdowns. When something goes wrong, the homeowner simply has to call the home warranty company to let someone know and be prepared to pay a reasonable service fee to the inspecting technician. The warranty plan provider will handle everything from there.
How Long Do Home Warranties Last?
Home warranties generally last for one year, although the exact terms of the contract will vary by plan provider. At the end of each year, the warranty coverage needs to be renewed.
Who Can Get a Home Warranty?
Anyone can get a home warranty, but most people who take out these plans are homeowners with single-family houses or townhomes. People planning to sell often take out transferrable home warranties as a form of added protection to make their properties look more appealing to buyers.
Are Home Warranties Worth the Money?
According to the homeowners who have them, home warranties are worth the money. The prices for the entry-level plans are very low, sometimes starting at just $20, and the warranties cover even very expensive appliance repairs or replacements. Even if nothing goes wrong during the coverage period, the small monthly payments are a good investment in the family’s peace of mind.
It’s Important to Find a Reputable Provider
Not all home warranty plan providers are equally reputable. Some tack on hidden fees or fail to follow through when homeowners need help. Be sure to do some research before choosing where to take out a home warranty plan by checking the company’s website, reading through some testimonials or reviews, and getting answers to questions.