Home and appliance repairs can be very costly. These repairs can run into hundreds, or even thousands, of dollars that may not be available when an appliance breaks down. People purchasing existing homes with older appliances can consider purchasing a homeowner's warranty to protect themselves from high appliance repair costs. A home warranty might be offered as part of the real estate closing package. The home buyer can also purchase a homeowner's warranty independently.

What is a Homeowner's Warranty?

Before purchasing a homeowner's warranty, a person should understand what it is and how it works. Generally, a homeowner's warranty is a service agreement that a person purchases to cover the cost of appliance repair or replacement of covered kitchen appliances as well as electrical, heating, air conditioning, or plumbing equipment and systems. The agreement does not cover the home's structural materials such as doors, windows, and floors. People can get more information for a homeowner's warranty from their Realtor or on the company website.

A home warranty is different than a home insurance policy, and the two should not be confused. They both have merit, but they cover different things. Most mortgage companies require that a homeowner carry home insurance to cover the building structure and specific contents in case of disasters like fires, storms, and other covered damages. Home insurance policies do not cover things like appliances that break or wear out during normal use.

A homeowner's warranty does not cover damages to a home that are covered by home insurance. Instead, this service agreement covers appliance and home systems that are listed on the agreement and break down due to normal use. The homeowner purchases the home warranty to cover a period of time, usually a year. The homeowner pays a small fee each time a covered appliance needs to be repaired or replaced. This fee is much less than the cost of a repair or replacement of the appliance or other covered item. A home warranty is not required by mortgage companies.

What are the Benefits of a Homeowner's Warranty?

Purchasing a home warranty has several benefits for homeowners. When a person purchases a 2-10 HBW Home Warranty, they have protection from unexpected repair costs and can budget yearly homeowner's expenses more easily. The benefits can include:

·        Protection for new homeowners with used appliances and older home systems. Unexpected appliance breakdowns don't need to be a large expense.

·        The element of convenience. When a covered appliance or system breaks down, the homeowner makes one call to the home warranty company and they do the rest. No searching for a dependable appliance repair person is required.

·        The homeowner does not need to use repair skills or tools when an appliance breaks down. This is great for those with no repair skills or that have physical limitations.

·        The plans are affordable, costing less than $100.00 per month. The per-repair fee is low at between $50 and $75.

It is important for every person considering a home warranty to read the service agreement carefully before purchasing it. Know which appliances and home systems the agreement covers and what conditions apply. It is possible to ask for additional things to be covered for a small increase in the agreement cost. Since the service call charge applies even if the repair will not be covered, make sure the appliance or system is covered before calling the warranty company for service.

Remember, the warranty company may require proof of appliance maintenance and proper use to cover repairs. Always read the fine print and list of repairs that are not covered before purchasing a home warranty.

 

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    Homesgofast com

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