When people buy a new home, whether it is an existing or custom-built structure, they put everything they have into buying and closing on the home. It is a happy occasion for a family when they finally own a home. But home ownership includes maintenance and home repair expenses. These expenses may be hard for new home buyers to afford. Finding out how to get home warranty coverage may be the answer.
What is a Home Warranty?
A home warranty is a type of policy that a home buyer pays for that will cover the cost of home appliances and system repairs when they break down. Home warranties vary from provider to provider and policy to policy. The homeowner should purchase a policy that covers the appliances or home systems they are concerned about. They should check on the per-visit service charge and the yearly policy cost and compare several companies.
A home warranty gives homeowners some peace of mind concerning their appliances, heating and cooling system, and plumbing or electrical system, depending on their policy. Fixing an appliance can cost hundreds of dollars more than a service fee would be.
A home warranty policy is different than a homeowner’s insurance, and a homeowner might want both. The mortgage company will require a homeowner’s insurance policy, but purchasing a home warranty is optional. Home warranties cover appliance and home system repairs or replacements when they break down. Homeowner’s insurance pays for damages to a home’s structure and contents when damage happens due to fire, disaster, vandalism, water damage, and so on. It does not cover appliances breaking down.
How to Get Home Warranty
Home warranties can be included in the sale of a home. The seller or Realtor may supply a home warranty as an incentive for the home buyer. This will be a pretty basic policy. The Buyer can ask the Realtor or closing company to supply names of home warranty companies and purchase their own home warranty. A homeowner who has lived in a home for some time can also contact a company that sells home warranties and purchase one.
Be sure to read the policy carefully before signing to make sure everything you want covered is listed. You can often add additional appliances to a basic policy, but if an appliance is not listed, it will not be covered.
What Do Home Warranties Cover?
A home warranty can be basic with less items covered or it can have additional appliances added for the customer. Most plans have this coverage:
- Plumbing, electrical and basic home systems
- Water heater, heating, and cooling systems
- Appliances like the washer and dryer
- The kitchen appliances including the oven, range, built-in microwave, and the garbage disposal
Limitations on Coverage
There are rules that determine coverage in a home warranty, and they include:
- Improper installation
- Improper or no maintenance
- Items not listed on home warranty
- Appliances that have been damaged by misuse or abuse
It is important to understand what a home warranty covers and what the homeowner must do to have appliances covered concerning maintenance and use.