When you purchase appliances for your home, you rely on them for everyday needs. You know they won’t last forever, but you count on them to work effectively for several years to make your life easier and more convenient. When they sputter and come to the end of their life, you aren’t always financially prepared to fix or replace them. In fact, these issues often seem to arise at the worst times.
If the prospect of paying expensive repairs bills is keeping you up at night, there is a way to soften the blow. With a home warranty, you can be free of many of the costs that accompany repairs to items in your house. If you don’t currently have warranty coverage for your Texas home, it’s helpful to learn what this plan covers and how it can benefit you. Once you understand how this coverage works, it can become clear why this is a wise investment.
Different Than Homeowners Insurance
A home warranty plan is not the same as a homeowners insurance policy, though some people confuse the two. Insurance protects your home against damage and loss in the wake of a disaster or catastrophe such as a fire, theft, or falling objects on your house. This coverage is required if you have a mortgage.
On the other hand, a home warranty is not required but is a voluntary purchase that you can make at any time. It pays for repairs to and replacements of certain items in your home that break down because of wear and tear. It also covers incidents of sudden and unexpected damage.
What It Covers
When you buy a home warranty, you get protection for many of the appliances and systems in your home. The plan will cover your refrigerator, dishwasher, stove, oven, washer, dryer, water heater, and built-in microwave. It also applies to the roof, sprinkling system, and swimming pool, if you have one. A warranty is also valid for the HVAC, electrical, and plumbing systems.
A qualified professional will determine the extent of the issues with your appliance or system. The item may only require minor repairs or new parts and components. If the problems are severe, and repairing it or putting in new parts will not get it working again, the service technician may need to install a new appliance or system.
What It Doesn’t Cover
This plan will not pay to repair or replace all types of appliances. Small kitchen appliances, such as blenders, electric skillets, and mixers, do not qualify. You also can not apply it to certain improvements you make in your house, such as adding or knocking down a wall or replacing carpet or worn-out hardwood floors.
You can make a warranty claim for normal wear and tear but not for other issues. For example, if an appliance wears out because you misused it or intentionally damaged it, repairs will be up to you. Also, if you failed to properly maintain and service the item while you owned it, your warranty may not cover any repairs or replacements.
A home warranty does have a coverage limit. The plan will pay to fix and replace items up to a certain amount. There is a limit per item per year. If the costs exceed this amount, you will be responsible for the balance. Some plans also do not cover older appliances and systems but will only pay to correct issues for items under a certain age.
As with an insurance policy, a home warranty requires that you pay a premium. When you do this, the warranty company will agree to send a qualified technician to your home when you file a claim for repairs. Some companies allow you to pay either monthly or annually. Typically, a warranty costs between $300 and $700 a year. If you compare this with how much it costs to fix various items in your home or replace them entirely, it’s easy to see how much money you can save with this plan.
Duration and Renewals
A home warranty usually will be in effect for one year. You may renew it immediately when it expires or at any time afterward. Your appliances do not need to be brand-new for you to purchase a warranty for them. Also, you can purchase a home warranty and then transfer it to new homeowners if you move.
It’s never an easy thing to deal with a faltering appliance or a home system that doesn’t work well. This can make your life difficult and uncomfortable. In some cases, a failing system can even be dangerous. Thankfully, a home warranty can eliminate these concerns. You can also have peace of mind knowing that it won’t break your budget to fix these problems.
NOTE: The Home Warranty discussed in this article should not be confused with a home builders structural warranty. A Home Warranty is typically used to protect items in the home not covered in a structural warranty. Please reach out to your home builder, realtor, or home warranty representative for more information.