Homeowners follow steps for protecting their home and investments, starting with the purchase of homeowner’s insurance. However, the homeowner’s insurance will not cover all features inside the property under all circumstances. If the property is damaged because of a covered event, the homeowner’s insurance provides funds to repair or replace the home. It doesn’t provide coverage for electrical wiring, plumbing, and all installations throughout the property. A home warranty, on the other hand, gives the homeowner additional coverage and makes it easier for the property owner to complete repairs and replace expensive installations in their property. Reviewing important details about a home warranty helps homeowners determine if it is the best choice for them.
What is a Home Warranty?
A home warranty is a guarantee that provides the homeowner with repair services and replacements at more affordable prices. The contract covers specific installations throughout the property, such as the HVAC systems, electrical and plumbing systems, and major appliances. It may also cover a swimming pool if the property owner includes the installation in their warranty contract. Homeowners can review the terms of most home warranties over at 2-10.com right now.
Does the Home Warranty Come With the Property?
Home warranties do not come with the property, and the home buyer will need to secure the home warranty themselves. The warranty is purchased through a warranty company that provides coverage on the first day. When buying a home, most buyers will not receive a warranty automatically even if the property is new. However, contractors may provide a limited warranty for their work only. A contractor’s warranty lasts about 30 days, and the homeowner would need to contact their contractors if any issues arise.
How Much Could the Homeowner Expect to Pay for the Warranty?
They could pay several hundred dollars for the warranty, and it is renewed each year. The homeowner can review the prices for a home warranty by visiting a home warranty company. The homeowner will receive an estimate for the full cost, and some warranty companies provide installment plans to cover these expenses. The homeowner needs to renew the home warranty at the end of the annual term to maintain coverage.
Does the Age of the Home Factor into the Cost of the Warranty?
Yes, newer means more expensive than existing properties, and the warranty company will calculate these expenses according to the current age of the property. For example, if the buyer purchased a newly constructed home, they can expect to pay far more than an individual who purchased a home that is even three years older. The warranty company can provide a comparison for individuals who are contemplating a home purchase and want to weigh their options for complete protection. They can also get quotes from several warranty companies and compare the annual fees for coverage.
Is Everything Covered Under the Warranty?
No, the homeowner must purchase and maintain homeowner’s insurance to cover the property and any damage it sustains. The home warranty will not pay for the property or any damage that requires professional repair services unless the specifics of the contract show coverage for the item. For example, if the homeowner wants to add their roof to the home warranty, the warranty must specify that the roofing is covered. Under most circumstances, the roofing isn’t included in the home warranty. However, the homeowner could get coverage for storm or fire damage by filing a claim through their homeowner’s insurance. They could also get coverage through a warranty provided by their roofing professionals.
Can You Transfer a Home Warranty?
Yes, a homeowner could transfer the home warranty to a new owner if they sell their home. However, to transfer the home warranty, the new owner would need to enter into a new contract with the home warranty company before transferring the coverage. The new owner would have to pay the annual fee for the warrant before coverage begins. They will need to review the terms of the home warranty and make changes when possible to maximize their coverage. However, the seller cannot force the buyer to maintain the warranty through the home warranty company, and the buyer can change companies if they prefer.
Why Should the Homeowner Review the Terms Carefully?
Reviewing the terms of the home warranty shows the homeowner exactly what they will receive by entering into the contract with the home warranty company. It shows what systems are covered under the home warranty. They should determine if separate structures are covered and if they have coverage for appliances that were installed in a separate structure such as a pool house or guest space. Understanding how the warranty works show the property owner what to expect if they need to file a claim or get repairs quickly.
How Does Proper Maintenance Work Against the Homeowner?
Some warranty companies have clauses that prevent coverage if the property owners do not maintain the items appropriately. All items listed in the home warranty must be maintained according to the manufacturer’s instructions. If the property owner doesn’t complete these steps properly, they cannot get coverage through the home warranty. If the service provider inspects the area that must be repaired or replaced and there are signs of neglect, the warrant company can restrict coverage even if the homeowner pays their fees on time. Reviewing all clauses in the contract defines if the homeowner could lose coverage for any items protected by the home warranty.
Homeowners must complete vital tasks to protect their homes and prevent financial loss. They purchase homeowners and flood coverage according to the terms of their mortgage contract. The insurance provides protection for the home, but it requires a specific event to cause damage in the home. The policies won’t cover all items inside the property as extensively as a home warranty. However, the warranty isn’t the same as insurance, and it provides discounted rates when items in the home or installations are no longer working or functioning properly. Reviewing the terms of a home warranty shows the homeowner what to expect from the coverage.