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A Beginner’s Guide to Home Warranties

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The home warranty industry has seen a recent uptick in popularity as more and more homeowners become aware of the benefits of having a home warranty. But what is a home warranty, exactly? In this beginner’s guide, we’ll cover all of the information you need to know about home warranties.

What is a home warranty?

A home warranty is a contract between the homeowner and the home warranty company. In most cases, the home warranty company agrees to pay for a certain percentage of the repairs or replacements needed to keep the home in working order. The home warranty company will also usually agree to cover a specific set of items in the home, such as the furnace, the roof, or the water heater.

Home warranties have a monthly or annual fee and usually cover the repair or replacement of a specific number of components or systems in the home. For example, a basic home warranty might cover repairing or replacing one plumbing fixture, one electrical outlet, and the system that heats and cools the home. More comprehensive warranties might cover multiple plumbing fixtures, multiple electrical outlets, and multiple systems in the home.

What is covered by a home warranty?

Most home warranties will cover items like the HVAC system, plumbing, electrical systems, and appliances. Home warranties can be a great way to save money in the event of a breakdown, as the cost of repairs or replacements will often be covered by the warranty.

It’s important to note that not all home warranty policies are created equal. Some warranties will only cover a specific group of items, while others will provide broader coverage. One of the most important things to remember about home warranties is that they don’t usually cover pre-existing conditions.

If you have an item in your home that is already broken when you buy the home warranty policy, the insurance company may not repair or replace it. It is important to note that home warranties typically don’t cover damage caused by pets either, so if your dog chews through your electrical cord, the insurance company may not reimburse you for the cost of repairs. Finally, many home warranties typically don’t cover damage caused by floods or fires, so it is important to have separate insurance policies for these situations.

It’s also important to read the fine print to fully understand your policy’s exclusions or limitations. If you have any questions, don’t hesitate to contact the customer service team of your home warranty provider.

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What do you do when your covered appliance breaks down?

If your covered appliance breaks down, you have a few options. You can try to fix it yourself, call a repairman, or call the warranty company. If you try to fix it yourself, read the fine print in your contract first to see if that’s allowed. If you call a repairman, be sure to get a few estimates and keep the receipts if the warranty company wants to reimburse you. If you call the warranty company, be sure to have the appliance’s make and model, the date of the breakdown, and your contact information.

How long does it usually take for a claim to be processed?

Most home warranty companies require that the homeowner submit a claim before they will agree to pay for any repairs or replacements. In most cases, the home warranty company will process the claim within a few days. However, in some cases, the home warranty company may need to send an inspector to the home to verify that the damage is covered by the policy.

Home warranties are an excellent option for any home

With this guide, you should have all the information you need to make an educated decision on whether you need a home warranty or not. Home warranties are an excellent way to ensure your home stays in working condition year-round without breaking the bank. So, consider protecting your home with a home warranty policy.