There are many expenses that come with owning a home. Appliances and systems break down at the most inconvenient times, and the cost of repairs can be a huge drain on your budget. New home warranties offer different options so be sure to check your warranty plan for the coverages. A home appliance repair insurance could benefit you and save a lot of money down the road.
A home warranty is a good investment, but you should carefully consider the contract’s terms and conditions. Read on to learn 5 Reasons for Getting a Home Appliance Warranty.
1. Peace of Mind
Many homeowners find peace of mind in knowing that their home appliances and systems are covered by a home warranty. This can help prevent a homeowner from depleting their emergency fund for the repair or replacement of an appliance or system that may break down unexpectedly.
A home warranty company usually includes a network of professional service providers, which can take the guesswork out of finding an experienced and licensed technician to handle your repair or replacement request. They also provide a streamlined claims process and comprehensive coverage for appliances and systems that can break down.
However, it’s important to remember that a home warranty will not automatically pay for an item to be replaced if the technician has determined that the appliance or system is not “properly maintained.” This can leave homeowners in limbo until their claim is denied.
2. Coverage for Newer Appliances
Many retailers sell a separate appliance protection plan that’s similar to a home warranty. These plans typically cover the cost of repairing or replacing new appliances that break down within a limited period after purchase.
Home warranties and appliance protection plans both offer coverage for functional parts and labor, but a home warranty may also include other issues such as power surges or heat damage. Also, a home warranty may provide a transferable option when you sell your house.
When you experience a problem with an appliance, you contact the home warranty company to file a claim. The home warranty provider will then send one of its partnered service providers to assess the issue. After the service provider determines the cause of the damage, the home warranty company will pay for repairs or replacement.
3. Coverage for Pre-Existing Conditions
Buying a home with appliances or systems that have warranties is a great way to save money and take some of the risk out of your investment. However, most
manufacturer warranties only last for a limited amount of time and don’t cover everything that could go wrong. Home warranty companies provide a variety of plan options and add-on coverage to help you customize the protection plan to fit your needs. Keep in mind that every company offers different coverage options.
When it comes to repairing or replacing your home appliances and systems, you can have peace of mind knowing that a home warranty provider will assign a repair technician and will only charge for what is covered by the contract. Some plans even offer specialized technicians who are familiar with particular brands and types of appliances.
4. Coverage for Repairs
Home warranty plans (not to be confused with homeowner insurance) cover the repair or replacement of appliances and home systems. There are typically three types of plans: a system plan, an appliance plan and a combination plan.
A home warranty can help limit unexpected repairs or replacements. Having a home warranty plan can also make it easier to budget for these expenses over time.
While a home warranty can help reduce surprises, it is important to remember that it does not replace homeowners insurance. It is wise to review the service agreement for details on standard, optional and upgraded coverage, limits, exclusions and premiums. Additionally, routine maintenance like draining a water heater or changing air filters can prolong the life of an appliance and may eliminate the need for a home warranty plan.
5. Coverage for Replacement
If a covered appliance is irreparable, the home warranty company will often offer you a replacement. They will pair you with a third-party service technician who specializes in that particular appliance, as well as cover the cost of the item’s replacement.
However, one important thing to keep in mind when considering a home warranty is the fact that many plans exclude coverage for appliances damaged by improper maintenance. It can be hard to know what constitutes proper maintenance for a particular appliance, so if the home warranty company determines that you didn’t maintain your appliance properly, they may refuse to cover any repairs or replacement costs.
Although a home appliance warranty isn’t necessary for every homeowner, it can provide some peace of mind. It can also be useful in assisting those who are new homeowners to make the right decision for their situation and budget.