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Home warranty - know the facts about what it is, what it is not and what is covered

Home warranty - know the facts about what it is, what it is not and what is covered

Where does the home warranty come in? Having the dishwasher or your heating system or any other appliance or system break down can be stressful, especially if you have not budgeted for its repairs. The warranty reduces the stress of having to bear the cost of repairs for the home appliances and systems. It is a contract between a company that provides home warranty services and the homeowner. The company provides repair services and replacements for appliances and systems for duration of twelve months upon the homeowner paying an annual fee.

The warranty is also useful during the sale a house because it keeps the sellers and buyers minds at peace. The seller does not have to worry about being called by buyer in case the appliances and systems break down after the sale. The buyer is also at ease knowing that there is coverage for the appliances, in case they break down and does not have to spend money for the repairs. Therefore, it is advisable for home buyers to ensure there is a home protection plan in place before buying a house.

How does the warranty work?

Home warranty also goes by the names home protection plan or service contract. It does not take the place of home insurance because it only covers the replacements and repairs of appliances and systems. If your covered system or appliance breaks down, you simply call the warranty company who sends a service technician to rectify the problem. All you need to pay is a small fee for the service. Some of the conditions required for the appliances to be covered are that they must be in working condition at the time of coverage and they should have been properly installed.

What is covered by the warranty?

Different providers have varying coverage with some appliances and systems not being covered. The items covered may also depend on the purchased coverage, which may leave some items out. Therefore, it is important when getting a home protection plan to find out what the warranty provider covers and what is not covered. Some of the appliances covered are dryers, refrigerators and ovens and the systems covered are electrical systems, air conditioning, furnace and plumbing. If there is an uncovered appliance and you would like to have it covered, you can get additional coverage at an extra cost. You can also request a customized package to suit your needs.

What the warranty is not

A home warranty is not insurance, but it can be thought of a supplementary to insurance because it covers the replacements and repairs of appliances that have been covered by the insurance. The homeowner’s policy only caters for the covered peril while the warranty offers relief for the appliances and systems damage due to the daily wear and tear. For instance, if the home is damaged by fire, the insurance company can compensate for the loss including those of the appliances lost. However, if your oven stops working due to the normal wear and tear, the insurance company cannot replace it. The warranty company is the one that repairs or replaces the oven.

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