A home warranty provides financial protection in case household systems and appliances break down after regular use or normal wear and tear. It’s often purchased during a real estate transaction or by new homeowners.
While home warranties may resemble homeowner’s insurance policies in some ways, they differ in coverage. Read on to learn more about this service contract option for your home.
What is a Home Warranty?
Home warranties are service contracts that cover the cost of repair or replacement of appliances and systems in your home. They differ from homeowner’s insurance, which protects your belongings and the structure of your home from certain events.
New homeowners typically need a warranty to give them reassurance that they can afford any repairs that might come up. They might also use one if they don’t know how well the previous owners maintained or installed the house’s components.
On the other hand, a warranty may not be necessary for people buying new construction homes. They generally have manufacturer’s warranties that last a while. For older homes, a warranty can help reduce out-of-pocket expenses and keep you from having to replace major appliances or systems that have reached their end of life.
What are the Benefits of a Home Warranty?
The best home warranty company in California can provide financial protection against expensive repairs or replacements of appliances and systems. They can also offer convenience through a streamlined claims process and access to qualified service providers. Some plans can even include add-ons like pools, spas and septic systems for an additional cost.
Having a home warranty can be particularly helpful for first-time homeowners, who may not have a list of trusted service providers in their area or may not have an emergency fund built up to cover unexpected repair costs. However, it’s important for homeowners to carefully review their contract and understand the limitations of a home warranty plan before purchasing one.
Some home warranty companies exclude pre existing conditions, and others have a waiting period before coverage kicks in. In addition, some home warranties don’t cover things like flooding or storm damage.
How Does a Home Warranty Work?
Home warranties are service contracts that cover the repair and replacement of your home’s systems and appliances from normal wear and tear. They do not cover damage or loss caused by fire, weather, or other disasters, which is what homeowner’s insurance covers.
Most home warranty companies offer bundled plans for systems and appliances, or individual appliance or system coverage. It’s important to carefully analyze a sample service contract and understand the extent of coverage before choosing a plan.
For new homeowners who may have limited knowledge about how well a home’s systems and appliances were cared for in the past or who have depleted their savings to purchase their dream home, a home warranty can provide peace of mind.
How Do I Make a Home Warranty Claim?
Home warranty plans can cover the cost of repairs or replacements for appliances and systems that break down. However, the process can be frustrating and stressful when a home warranty company denies a claim. Understanding what causes claims to be denied and taking steps to avoid them can reduce stress and disappointment.
Start by reviewing the details of your home warranty contract. Look for specific details that could impact your home warranty claims, like pre-existing conditions and limits on certain items or services. Next, request a service professional to assess the problem and write an inspection report. This step is generally mandatory and may have a fee associated with it.
What Can I Do if I Have a Home Warranty Claim?
The specific steps involved in filing a claim can vary by home warranty provider, so it’s important to review your contract carefully. You should also look for exclusions and limitations in your contract to understand what your plan covers.
For example, some home warranties may only cover the cost of repairs, not replacements. Additionally, a home warranty may not cover a system or appliance that was damaged due to lack of maintenance.
Additionally, if a company has an unjustified denial of a claim, you can always file an appeal. It’s best to do this quickly and follow up with the company if you don’t hear back in a timely manner. You can also contact the Better Business Bureau if a company doesn’t respond or makes a decision that you believe is incorrect.
