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What Really Goes On In The Home Warranty Industry?

What Really Goes On In The Home Warranty Industry?

The last thing a property owner wants is to dig deeper into their pocket in the name of property maintenance or repair. This can be overwhelming and financially strenuous, especially for first time property owners because the last thing you need after completing your property is maintenance expenses. Home warranty guarantees you that elusive peace of mind, especially if you have no background in home maintenance, care and repair of appliances and systems like HVAC. 

How Home Warranty Works

The question that many first time homeowners ask is; who finances the home warranty? Well, this depends on the initial agreement. Usually, property owners finance the home warranty and they stand to benefit a lot in the event that they decide to sell the property as the buyer or tenant will not be obliged to call the property owner in case of broken appliances. Home warranty also comes in handy when you are trying to close a deal during the sale of your property.

Considering that there are a number of home warranty companies; you can weigh your options simply by combing through various contracts. Read the terms and conditions before signing up. Usually, a home warranty cost ranges between high and low, but the final figure/premium is highly dependent on the extent of the coverage. 

In some instances, home warranty companies run special offers. This means that the prices on discount policy or offer extra coverage at no extra cost. Usually, home warranty companies require that property owners pay the policies upfront for a year and renew them once they expire.  

In some instances, a home warranty company may decide to play smart with you and deny a claim. In such a situation, you might have to seek the services of your real estate agent and ask them to intervene on your behalf, especially if he/she did the home warranty paperwork.  

However, denial of payment is caused by a number of things such as code violations, poor installation and maintenance in addition to wear and tear. It is vital to understand the rules of engagement before you sign up for the contract. Most importantly, do not be afraid to ask questions. 

Benefits of a Home Warranty

While certain warranty plans cater for certain coverage types, most of them run the same way. For instance, once you sign up with a home warranty company, you can no longer rely on your personal technician to handle repairs who then schedules an appointment for the fixtures. The company does that for you and they strictly provide their own technician. 

Here are some more benefits:

• You will only pay a tiny sum to cater for trade service

•  The company will take the repair and maintenance burden off your shoulder

• A landlord does not have to dig into his pockets every time there is repair and maintenance to be done

That said, home warranty companies do not just cover anything and everything. For instance, these outdoor appliances are not covered; sprinklers, faucet damages, garage door openers, permit fees, pools, haul away, washers and refrigerators. 

Considering that there are many types of coverage in the home warranty industry, it would be wise to understand what each one of them covers. Settle for one that you find ideal and ask whether your company of choice will replace an appliance if it is beyond repair.

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