Buying or selling your home can be stressful, especially if one of your home’s systems or appliances breaks down unexpectedly. A home warranty covers costly home repairs and replacements due to normal wear and tear. It’s not your homeowner’s insurance policy; a home warranty is a separate contract covering repairs and replacements on systems in your home, usually for a period of one year.
Home warranties cover many, but not all, of your home’s appliances and systems. Contract costs and coverage can vary widely. Home warranties cover many of your home’s crucial systems and appliances, but they must be in working order before the contract is entered into with the warranty company. Make sure you have reviewed your contract and coverage before you need it to understand what is covered and what is not.
When a home warranty is understood and utilized for its intended purposes, it can be the easiest way to save on home repairs and reduce the extra stress that comes with buying or selling a home.
What is the Trade Call Fee for?
This is a small fee the homeowner pays in order to have the service contractor come to their home to diagnose a problem. This fee covers the visit and the amount is clearly stated on every contract.
Will Every Breakdown be Covered?
Not all breakdowns are covered. Your contract details out, section by section, what is covered in each plan and option and what is not.
How Do Homeowners Request Service?
Simply call the phone number listed in your contract.
What is the difference between home insurance and a home warranty?
Home insurance and home warranties are both designed to help you in the event that you experience loss or damage to your home and/or your belongings. A typical home insurance policy covers many things including the structure of your home, personal belongings, and other structures on your property if damage or loss is caused by a covered peril.
A home warranty, on the other hand, offers repairs and replacements for your covered home appliances and systems only that fail due to normal wear and tear – which a homeowner’s insurance policy does not. A home warranty is a contract, not a policy.
Let’s look at a few examples:
|A hail storm rips through your community and causes damage to your roof.||Homeowners Insurance. A standard homeowner’s policy covers damages caused by hail for the structure of your home.|
|You wake up one morning and find your central AC has stopped working due to normal wear and tear.||Home Warranty. A home warranty typically provides coverage for air conditioning units and other home appliances/systems if they fail due to normal wear and tear.|
|A cooking fire in your kitchen damages the walls and ceiling in your kitchen.||Homeowners Insurance. A standard homeowner’s policy covers damages caused by fire to the structure of your home.|
|Your oven stops working.||Home Warranty. A home warranty typically provides coverage for a range/oven/cooktop and other home appliances/systems if they fail due to normal wear and tear. They must be in working order before the contract is purchased.|
|A wind storm blows a tree limb through your living room window.||Homeowners Insurance. A standard homeowner’s policy covers damages caused by wind to the structure of your home.|
|You find your furnace is
no longer working.
|Home Warranty. A home warranty typically provides coverage for heating systems/furnaces and other home appliances/systems if they fail due to normal wear and tear.|