What to Know About Home Warranties
Does a buyer really want to worry about items that could malfunction or break in their new home? This is where a home warranty may be useful. First-time home buyers often appreciate the additional peace of mind that comes along with having a home warranty and it may be especially useful in the first year or so of owning an older home.
Learn more about home warranty plans today.
Home Warranty Coverage
There are many home warranties available to choose from but many use common terms and processes. The average home warranty should cover repairs or a replacement of home appliances or home systems.
The process is rather straightforward. The homeowner has an appliance or system which either stops working or malfunctions. They then call the home warranty company. The company works with a provider and calls them. This provider arranges an appointment with the homeowner. This provider addresses the issue by attempting to repair the item. If this fails to work, contract details may permit the home warranty company to replace the appliance. Much depends on the terms and conditions stated in the contract. A homeowner is generally obligated to pay an amount of less than $100 as a small trade service fee. A home warranty often covers:
- Telephone wiring;
- Range and oven;
- Electrical systems;
- Ceiling fans;
- Plumbing stoppages from an indoor source;
- Garbage disposal;
- Ductwork to code;
- Water heater;
- Furnace or heating;
- Dishwashers; and
- Air conditioning.
All plans are different. Check to see whether or not the home warranty company may cover repairs to make appliances and specific systems compliant with the most recent regulations. A real estate agent may also let homeowners know if an upgrade is available on a home warranty plan.
Home Warranty Exclusions
In general, there are common exclusions to a home warranty plan. This means that coverage may not extend to certain systems or appliances used in a home. Items and systems not covered in a home warranty may include:
- Broken items before a closing;
- Permit fees;
- Pool or spa coverage;
- Faucet repairs;
- Sprinklers and other outdoor items; and
- Garage door openers, washers and dryers, and refrigerators.
A homeowner may want to investigate the coverage offered from a home warranty plan to avoid unpleasant surprises. Policies vary depending on company or state. View any policy offered before agreeing to its terms and conditions.
Issues with Claims
There are times when a claim will be denied. Claims may be denied due to improper installation, code violations, poor maintenance and other issues. Nesbit homeowners who have to contend with such a situation or are not happy with the service given can reach out and complain to their real estate agent. In many cases, the agent offers the home warranty contract to new home buyers and will be invested in seeking resolution for clients. An agent can speak with their home warranty representative to work out an acceptable solution.
Potential Savings with a Home Warranty Policy
Buyers may enjoy free repairs of older appliances under their policy. These contracts generally promise to keep specific items and systems working for a stated period. This reduces potential maintenance costs for those buyers who have just moved into a new home. Home warranties are available for new construction homes and for existing homes. In the case of existing homes, an agent or seller pays for the policy as part of the sale. Deductibles may be required with every repair. Homeowners may also choose to buy their own home warranty. Understand what is covered in a specific policy before working with any home warranty company.