by Understanding of House Warranty Insurance
Life can be expensive. For many people, it seems something is constantly breaking down or going wrong. Vehicles require ongoing maintenance. Despite your best efforts, they can still end up needing extensive repairs. That’s also true when it comes to homes and all the essentials within them. No matter how well you take care of a home, problems are bound to arise from time to time.
Dealing with Unexpected Home Expenses
Any number of things can go wrong in a home. From small appliances to major home systems, breakdowns are going to happen at some point. That’s the case even if you have routine inspections and maintenance carried out at all the right times. Those unexpected occurrences can certainly add up to devastating expenses. If you’re covered by house warranty insurance, though, breakdowns may not necessarily break the bank.
What Do Home Warranties Cover?
Generally speaking, home warranties take over where homeowner’s insurance leaves off. They typically cover various appliances and home systems, including washing machines, dryers, ranges, refrigerators, water heaters, and dishwashers. They can also extend to HVAC systems, electrical wiring, and plumbing systems. Warranties tend to cover many components that make those appliances and systems work properly.
Taking a Closer Look
With that being said, it’s time to take a closer look at the protection provided by home warranties. These plans often cover the costs of having professionals take a look at covered appliances and systems to determine exactly what the problem is and what it’ll take to repair it. They likewise provide payouts to cover the costs of repairs. The warranties may pay to replace appliances if the cost of repairing them would exceed the cost of a replacement or they simply can’t be repaired.
Where Does the Coverage End?
Keep in mind that home warranties don’t cover every eventuality. They usually stop short of factors covered by homeowner’s insurance. Those could include fire and smoke damage, flood damage, vandalism, and theft. Storm damage, which is also typically covered by homeowner’s insurance, probably won’t be covered by a home warranty, either.
In most cases, home warranties also have monetary coverage limits. Those vary from one plan to the next. Some may cover up to $500 in parts and labor costs while others provide thousands of dollars in annual repair coverage. Certain plans may only offer partial replacement coverage for appliances or home systems. They may take depreciation and other factors into consideration when determining payouts.
Home warranties may not cover surface damage. If an appliance is dented or scratched but the damage doesn’t affect its functionality, a home warranty company may not consider the damage serious enough to provide a payout. Warranty companies often have routine maintenance requirements in place, too. If you fail to take care of home appliances and systems, your warranty may not cover repairs or replacements. Certain components of covered appliances and systems may not be protected, either.
Making Sure You’re Covered
All those are important factors to consider when choosing a home warranty. Many homeowners think they’re covered for certain issues when they actually aren’t. That leaves them facing unexpected expenses or dealing with major inconveniences. Different home warranty plans are available, and they can often be tailored to meet the unique needs of homeowners. Be sure to do your research and read the fine print so you get the protection you need.
