Your guide to getting the best home warranty plans
Many Americans consider housing as the greatest investment a person can make. To get the most out of the long-term investment, everything from the foundation all the way to the roof should be at its best condition, and it is not only the house but also the contents in the house. Among the most important and valuable items in a home are appliances. Most home appliances are usually insured, but their warranties only last for a short period of time. Having a home warranty plan is the best way to ensure that your appliances are protected.
Home warranty plans, also known as home appliance insurance is a service agreement that aims to protect your home systems and appliances against normal usage or wear and tear. Home appliance insurance is different from a homeowner insurance policy. The plan covers repairs and failed home appliances and systems replacement. However, it does not cover replacement of stolen appliances or those lost due to natural hazards. Home insurance plans, on the other hand, covers both your home and items in the home (including appliances) against theft and disasters.
How do home warranty plans work?
Home appliance insurance offers comprehensive home warranty for systems and appliances. If a problem occurs with a covered appliance, the homeowner will file a claim with the insurance company. After processing the claim, an approved contractor will be scheduled to find out the cause of the problem. At this point, you will be required to pay a service fee. The contractor will come up with the best solution for the appliance and once the issue is resolved, you can have your appliance working again and continue with your coverage. It is important to note that home warranty companies will only repair your appliances if they meet the terms and conditions of the deal.
What are the benefits of home appliance insurance?
One advantage that comes with home warranty plans is that you will save money on maintenance and replacement costs. You only need to incur an annual fee while ensuring that your appliances are efficiently working. You won’t have to spend money when an appliance unexpectantly breaks, and this will give you peace of mind. If you decide to sell your home in future, a home warranty plan will help attract potential buyers.
What appliances and systems are covered by home warranty plans?
So what exactly do you expect a home appliances plan cover? In home insurance plans, the cover is determined by the value of the systems or appliances. In this case, the more the value of purchase the better. The insurance covers numerous appliances and systems in your home. These include;
- Hot and cold water dispensers
- Baggage disposal
- Smoke detectors
- Music systems
- Central vacuum
- DVD players
- Ice makers
- Built-in microwaves
- Trash compactors
- Garage door openers
- Food processors
If you have a lot of appliances and systems in the plan, a blanket insurance cover will be convenient for you.
As much as the insurance plan covers systems and appliances that break down due to normal wear and tear, there are some things that are not covered by the plan. This includes haling fees and permit fees, or other parts of your home systems or appliances that can easily be replaced. The exclusions differ from one insurance company to another but the common ones include;
- Structural problems
A home warranty plan does not cover structural problems like leaking roofs or basement cracks
- Existing problems
There are companies that cover pre-existing problems that the manufacturer was not aware of at the time of sale. But there are also companies that will not agree to repair or replace appliances and systems with existing problems.
- Lack of maintenance
The service contract is also exclusive of improperly maintained home systems and appliances, and those that were installed against building codes.
- Hidden charges
Homeowners also need to be aware of hidden charges. There are home warranty plans that charge extra fees besides the deductibles. This may include missed appointment fees or service fees.
- Limited number of claims
Pre-existing claims and poor maintenance are excluded from home warranty plans. There are also companies that limit the number of claims filed by a homeowner.
Before hiring an insurance company, it is advisable to read the fine prints to avoid your claims being rejected. You also need to go through the company reviews and find out if there are frequent complaints of client claims being denied.
Why should you buy a home warranty plan?
Homeowner insurance plans can come in handy when your appliances are no longer covered by the manufacturer’s warranty. Life is also full of unexpectations and you can also apply for the cover to have a peace of mind. Home warranty plan also helps save expenses of repairs.
How do you select a home warranty plan?
There are quite a number of companies that offer home warranty of America. It is important that you first go through reviews of different companies before coming up with a plan that suits you the best. You also need to take note of the coverage exclusions and limitations. The best plan should be in a position to cover pre-existing conditions which the seller was not aware of.
Is it the best option?
Home is where your heart is and there is nothing as frustrating as the sight of a broken air conditioner or leaking taps. The hassle that comes with looking for a repair person can be easily avoided with an appliance insurance plan. Buying a home is a huge investment and frequent maintenance is important to ensure that your home maintains its value. The plan will relieve you of the expensive cost of repairing home systems and appliances. Just like other insurance covers, a home warranty plan is bound by clauses, which is important that you read the fine prints for you to get the best out of the deal.
When looking for home warranty covers, ensure that the company offers affordable rates. You should also consider their customer care service. Only hire a company that has the reputation of meeting clients’ needs. Lastly, do not forget that home appliance insurance does not cover cases of theft or natural disasters. These will only be covered under home insurance policies.