There are so many pieces that go into buying a home. You have dozens of systems and appliances that you must care for regularly if you want to prevent anything from breaking suddenly. Even so, you may come across a system or appliance that simply breaks down from normal circumstances. What do you do then?
Well, most people will take out a home warranty plan to cover all of their systems and appliances if the unexpected happens. Because you will likely spend thousands of dollars to fix or replace the broken system or appliance, having a home warranty can be a great way to be protected should something happen.
Many people have questions about home warranty plans and what they are. Luckily, home warranty plans are not that difficult to understand. However, there still are some things that you should know about home warranty plans before you take one out. Not only will knowing these top ten most commonly asked questions about home warranty plans help you understand them better, but will help you find the right home warranty company for your circumstances.
#1 What Questions Should I Ask a Home Warranty Company?
You should always do due diligence and research home warranty companies before you choose. We also recommend checking out our expert reviews of all the top home warranty companies. Our reviews can help give insight into some of the best home warranty companies currently available. However, you should ask the following questions before you commit to a home warranty company.
#2 What Should I Look for in a Home Warranty?
When looking for a home warranty, it’s essential to look for the items and systems you want to be covered. Because every home warranty is slightly different, we can’t guarantee that every system and appliance will be covered. Look for customizable plans so that you can create a home warranty that fits your needs.
You should also look for a home warranty that is within your budget. Because you can pay a variety of different monthly fees and come across many different limits, you want to make sure that you research the home warranty before you decide. Finally, you should look for a home warranty company with excellent customer service and an easy claims process. When your systems break down, the last thing that you want to do is work with a difficult customer service line or have to deal with a tricky claims process.
#3 What Do Home Warranties Cover?
Home warranties cover a variety of systems and appliances in your home. However, these plans are also very customizable, and you can get individual coverage for other add-ons if you choose.
The appliances that are generally covered under a home warranty include:
You can also talk to your home warranty company and see if they offer any additional add-ons for appliances or systems that you want covered, including:
#4 How Do Home Warranties Work?
The whole process regarding how home warranties work is relatively straightforward. Many home warranty companies offer several plans that you can choose from to find the coverage plan that works for you.
Once you find a warranty plan that meets your needs, you typically wait for 15 to 30 days for it to go into effect. After your waiting period is over, you can start making claims on appliances should they break down. If you do need to contact your home warranty company about a broken system or appliance, you simply follow the easy instructions below:
#5 What Does a Home Warranty Not Cover?
Even though home warranty plans cover nearly all systems and appliances in your home, some circumstances and items are not covered. For example, home warranty plans generally do not cover any pre-existing conditions. A pre-existing condition is any problem that occured before your home warranty plan was implemented. You cannot set up a home warranty plan simply to get your broken dishwasher fixed.
Further, home warranties will not cover any cosmetic damages to your systems or appliances. So, they will not cover any dents, scratches, scrapes, damage from pests, or damage from pets. Home warranty plans will also not cover problems with your systems and appliances that emerged from neglect, misuse, or intentional damage. So, you must take care of your covered items and only make a claim when they break down from unintentional cause or normal wear and tear.
Unless you specifically get a plan out for them, home warranty plans typically do not cover luxury items such as pools, spas, and accessory items. Many home warranty companies offer add-ons for the service, though.
The exact items that your home warranty plan does not cover will depend on your contract. Talk to your home warranty provider to ensure that you have all your systems and appliances covered. Also, make sure you check the fine print to know what exactly is covered.
#6 What is a Limit?
When looking at home warranty plans, it is important to figure out the limit on your coverage. The limit on your home warranty plan is the maximum amount that your home warranty will pay when something breaks down. This means that if you max out your limit, you will be responsible for anything extra.
While some home warranty companies will have monetary limits on all systems and appliances in general, other home warranty companies may have individual limits on specific appliances and systems. For that reason, it’s important to keep track of your limits and make sure you understand your contract before you decide on that home warranty company.
#7 Why Do I Need a Home Warranty?
Home warranties are incredibly beneficial to homeowners, landlords, and those who want to sell a house. Because a home warranty covers normal wear and tear, it can be a great way to save money should your system or appliance break down. All you have to do is pay a monthly premium, and simply make a claim to your home warranty provider if any of your systems break down.
So, if you want to save money in the long run, it is worth it to get a home warranty plan. And the peace of mind knowing that you can make a simple call to come to get your vital systems and appliances repaired if they breakdown is reason enough to get a home warranty.
#8 Is There a Difference Between Home Insurance and a Home Warranty?
There is a big difference between home insurance and a home warranty. A home insurance plan is required by your mortgage lender and will cover any structural damage caused by natural disasters, theft, fire, and vandalism.
On the other hand, a home warranty will protect your systems and appliances from normal wear and tear. If any of your covered items break down, you can make a claim to your home warranty company, and they will send out a technician to replace or repair your system or appliance.
#9 What is a Service Call Fee?
The service call fee on a home warranty plan is the amount that you’ll pay for a contractor to come and diagnose the issue with your covered system or appliance.
If your contract does not cover it, you still have to pay the service call fee, and will likely have to pay for the appliance or system to be covered out of pocket. A service fee runs between $60 and $100, depending on your plan and home warranty provider.
#10 How Much Does a Home Warranty Cost?
The amount you will pay each month for your home warranty will depend on the number of systems or appliances you have covered and how much you want your limits to be.
Most of these plans are customizable, and you will likely be able to find a home warranty plan that works within your budget. Home warranty plans range from $300 to $600 per year, and you may pay between $30 and $70 a month. Of course, some home warranty companies will cost more or less depending on the amount of coverage.
Is it Worth it to Get a Home Warranty?
Now that you know the most commonly asked questions, you probably wonder if it is worth it to get a home warranty. In short, it is worth it to take out a home warranty on your systems and appliances. Because these systems and appliances are vital to the function and livability of your home, it’s important to have them covered should they break down. After all, you don’t want to spend a hot summer day without air conditioning or have to throw away all your spoiled food because your refrigerator broke down.
So regardless of if you are a new homeowner or on your 15th home, you should have a home warranty. Plus, home warranty plans are so customizable that you can pick and choose what level of coverage is best for your home. And, when your appliances and systems inevitably break down, all you have to do is pay a small service fee for a technician to come out and fix or replace your appliance or system.
Final Thoughts
Now that you know the most commonly asked questions about home warranty plans, it’s time for you to start your search. Because home warranty plans are worth it for every homeowner, it’s important to find a home warranty company that works for you.
Many different home warranty companies are out there, and it can be hard to find the right provider for you. That is why our experts have reviewed the best home warranty companies currently on the market. So instead of spending hours online, simply check out our expert reviews.