When buying a home, new homeowners must trust the information provided by the seller about the condition of the home and its contents. But, even with perfect care, things can break down. Fortunately, there are home warranties available to protect homeowners in these situations. However, homeowners must choose the right home warranty policies to meet their needs and provide the right protection.
What is a Home Warranty?
A home warranty is a service contract for homeowners. This service contract protects the normal breakdowns of covered items. When buying a home, it can be difficult to know when an appliance or home system might break down. Often, breakdowns come at a time when the budget is tight. A home warranty can help ease the burden of these common breakdowns.
With a home warranty, homeowners simply contact the warranty company anytime they have a problem with a covered item. The company will dispatch a technician to address the problem. Homeowners pay the predetermined fee to the technician, and that is all. The technician will then either repair or replace the covered item as needed.
These policies can provide appropriate protection for homeowners. However, homeowners should find the right policies to meet the needs of their home and situation. There are various policy types and options available for homeowners.
Appliance Coverage
The most common policy type is the appliance or kitchen policy. This policy protects the basic appliances in a home’s kitchen. The covered appliances usually include the home’s refrigerator, dishwasher, stove/oven, and built-in microwave. These are the most common kitchen appliances necessary for keeping a home running smoothly.
As long as the appliances were properly cared for and not misused in any fashion, any breakdowns will be covered by the appliance policy. When an issue occurs, the dispatched technician will determine the cause of the problem and whether the unit needs to be repaired or replaced. Either option is covered by the warranty policy.
System Coverage
Another common warranty is the systems coverage policy. The system coverage protects the home’s major systems. The major systems of any home include the electrical system, plumbing, furnace, and air conditioning unit. These are the systems in the home that are necessary for having a livable environment for homeowners and their families.
Similar to appliance coverage, the covered systems must be properly maintained throughout their lifetime. This maintenance includes yearly tune-ups for the furnace and air conditioning. Sometimes, these system policies have yearly coverage limits. Checking with the warranty company is important to ensure the home’s systems are properly protected.
Additional Coverage
Due to the uniqueness of every home, standard policies may not provide enough protection to cover the needs of the homeowner. Some homes have more appliances than those covered by the appliance policy. Some homes may use wells or septic tanks that are not typically covered by a system policy. Sometimes, homeowners simply want more protection for other common household issues.
For these reasons, a home warranty can be customized to meet the needs of each homeowner. Coverage for additional appliances or systems can be easily added to a policy. Homeowners can even have items such as pools or spas covered by their policy. For added protection, homeowners can also choose to have more comprehensive coverage to help with other issues like a roof leak or sewer line collapse.
Home Builders Policy
There are even policies available to help protect home builders. Defects in materials or even problems with workmanship can diminish a builder’s bottom line. With a home builder’s policy, builders can be protected from these issues. These policies provide coverage for various repairs needed in a newly built home.
There are many types of home warranty options available. Those buying, selling, or even building a home should consider the benefits they can receive from a home warranty.
