Why You Should Consider Getting A Home Warranty…Right Now!

A home warranty can sound like a great idea but is it really worth it?  They have gotten a bad rap in the past, but like any warranty or “insurance” policy, the upfront cost can be worth it when you need it! You just never know when you’ll face unexpected (and costly!) repairs or replacements for your home.  Read on to learn more about the pros and cons of home warranties and whether you should consider getting one.A home warranty can sound like a great idea but is it really worth it?They have gotten a bad rap in the past, but like any warranty or “insurance” policy, the upfront cost can be worth it when you need it! You just never know when you’ll face unexpected (and costly!) repairs or replacements for your home.Read on to learn more about the pros and cons of home warranties and whether you should consider getting one. If you’re a current homeowner or about to buy your first home, this is what you need to know:What is a home warranty? It’s a policy where your home’s main systems or appliances will be covered for repairs through a home warranty company. This typically will include your air conditioning system; water heater; furnace; plumbing; any built-in appliances such as refrigerator or dish washer; and for an additional fee, you can add “extras” such as a swimming pool systems. It’s usually for one year of coverage costing $400-500 with a $100 deductible when you make a service call.A home warranty is different from your homeowner’s insurance or a manufacturer’s warranty on a product. It will cover the labor to fix a failed part on a product that your manufacturer’s warranty doesn’t, and it will pay for the plumber to fix a broken pipe but not the damage to your home, which your insurance policy should cover. So it can work hand-in-hand with other home policies when something goes wrong.Who can purchase a home warranty?  Some warranty companies will allow a homeowner that has been in their home for a long time to buy a warranty, not just new homeowners buying a warranty at the time of settlement.  This is a great improvement since previously home warranties could only be purchased at the time of settlement.What do consumers need to know before they buy? It’s very important to read over the fine print of your contract and understand what is covered and what is excluded. Here are some typical actions to be aware of for standard packages:

• Covers repairs on large systems (heating or air conditioning) but not replacements. It will keep appliances functioning but not necessarily replace with new ones.
• Won’t cover if breakage is due to poor maintenance by the homeowner; typically covers “normal wear and tear” of an item.
• Excludes certain items – i.e., may cover refrigerator repairs but not the ice maker.
• Doesn’t cover items once they reach a certain time period or beyond its serviceable life (i.e., 20+ years old).
• Doesn’t cover pre-existing conditions. Items need to be properly installed, maintained, and in good working condition when you apply for coverage.

What happens when I need to have something repaired? A home warranty company requires you to contact them first when something breaks. They will then contact their service providers to send to your home. They will pay the service provider once the claim is approved. If you call a service provider without contacting them first, the company may not cover the repair.You do not control over whom can come to your home to repair an appliance or major system. That can be a major downside to some homeowners, especially if they have to wait a long time for a repair. If your furnace breaks down during a cold spell, you have to wait for the home warranty company to deal with their subcontractor.What if something is not covered when I thought it was? Like any warranty for a TV, computer, or any other type of purchase, there is always fine print and often times the warranty company can choose not to cover something.  If this happens to you, I can help with negotiating a repair with the warranty on your behalf.  Sometimes it’s just having the experience to handle these situations…or maybe it’s our magic wand I use!What do I look for in a home warranty company? It’s important to find a reputable company that has been highly recommended by others.

• Investigate their long-term history and Better Business Bureau information.
• Compare coverage levels and upgrades to standard packages along with deductibles and service fees.
• Read the fine print on contract to understand any co-pays and exclusions.
• Understand how you can cancel a contract.

Let us know if you have any questions about getting a home warranty or which companies I recommend. If you’re a current homeowner or new homebuyer, I can help make sure you are covered for your type of home.