A home warranty also has its share of drawbacks and that is why some people avoid it despite others finding it useful.
Maintenance of systems and appliances
One of the requirements for provision of a home protection plan is that the systems and appliances should be well maintained. Items that are not properly maintained are not covered. This has caused many disagreements between the companies and holders of the warranties where some of the repair claims have not been honored due to lack of proper maintenance. The problem is that there is no given definition of proper maintenance and dishonest warranty companies may use it to deny clients their claims. As a result, some people avoid the use of warranties altogether for fear of getting unsettled valid claims.
When buying a home, one is not responsible for what happened before. In case you buy a home with an appliance that has not been maintained, it may be difficult to maintain it to the standard required by the home warranty companies. This may deny you coverage even if it is not your fault. The providers also set limits for the value of repairs you can get. If an item is too old, it may require more repairs to an extent of exceeding its set dollar limit and therefore, you may end up paying for additional repairs despite having warranty coverage.
When there are no claims or a claim is not honored
The advantage that home warranties have is that they reduce the cost incurred in repairing or replacing systems and appliances in the home. If your items break down, you do not have to spend a lot of money in repairs, especially if you do not have that kind of money. The downside comes in when your items do not require repairs for a year or more and yet you are paying the premiums. You may feel as if you are wasting your money on a home protection plan that you do not use and it would have been better if you had kept the money in an emergency fund for future repairs. You may also spend money on premiums and when you make a claim, it is not honored. This may make you feel as if you have wasted the money that you have been paying on premiums and trade call fee. Sometimes the repair may require components that have not been covered by the warranty, and you may end buying them in addition to paying the service fee.
Failure to choose a technician
Another drawback relates to contractors that are chosen to do the repairs. The home warranty company chooses them denying the warranty holder the freedom to choose their own contractor. This means that you are stuck with the person sent, even if you do not like them or their work. You can also not get into negotiations with the contractor the way you would if you had chosen your independent technician to do the repairs. The warranty holder is also left at the mercies of the technician and the warranty company when it comes to making the decision on the brands or models to be used while components are being replaced. In addition, instead of replacing an item, the two may prefer to repair it, and you may have no other choice but to agree with the decision.
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