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Why You Really Need A Home Warranty
Asking yourself whether you need a home warranty is a good question. Your home
is probably the biggest investment you will make. Major household appliances -
such as stoves, refrigerators, dishwashers, washers, dryers - are also among
your larger, long-term investments. A home warranty will ensure you are covered
if any of the covered systems or appliances in your home malfunction.
Things that can go Wrong at the House
Property insurance covers your home and its contents, but under different
circumstances. It insures your investments in cases of fire and natural
disasters, like floods. It does not compensate you for repairs needed due to the
wear and tear of your covered appliances or electric, heating and cooling systems from
regular use over time. Unless you are an electrician, plumber or excellent
troubleshooter, you may very well end up paying more over the years if you pay
out-of-pocket to fix every problem that arises.
The "Stay Away from Warranties" Adage
Everyone has heard the wisdom that warranties are a waste of money; that it is
better to save the money and put it into a bank. This may be true of specific
product warranties, especially when the item did not cost relatively that much
when purchased. A home warranty is very different. It covers several important
parts of your home at the same time, for a single price. Your systems and
appliances also do not have to be brand new to obtain a reasonably priced home
warranty for all of them.
Types of Homes Included in a Home Warranty
If you own it, there is a home warranty to cover it. Homes may be of the
stand-alone dwelling, townhouse, condominium, or rental type. Your home may be
older or in the process of being built. System and appliance problems that arise
in investment property in which you do not dwell can be a headache. With a home
warranty, you can sit down to dinner or go to bed without having to worry about
being called out by a tenant when the electricity goes out or the plumbing is
clogged. All you have to do is call the warranty service center to start your claim.
Affording a Home Warranty
At first glance, the pre-pay $250 to $600 for a home warranty may appear steep.
However, considering plumbers and electricians typically charge $75 or more per
hour for repairs, a house call for a single problem may end up costing you a few
hundred dollars without a warranty. As everyone has probably experienced at one
point or another, home systems and appliances malfunction without notice or
consideration for the timing of the next paycheck.
This is definitely a product/service worth looking into. You can check out
various home warranty companies online through professional quote websites like
ours. Ask around and see if anyone you know has one, and get their opinion about
the coverage they receive. Do not wait until the dryer fries a wire when you
have nothing clean or dry left to wear, or your pool's filter system shuts down
during a hot spell. Give your home the warranty it deserves.
Home Warranty FAQ's
A home warranty can be considered as another type of home insurance. The product
covers repair services for household systems and appliances that may cease
functioning due to wear and tear over time. A home warranty offers coverage
to every homeowner, especially those who are in their first home, are too busy
to keep up with repairs themselves, are not knowledgeable do-it-yourselfers or
have an older home and/or appliances.
What Does a Home Warranty Cover?
Home warranties are provided in various types of plans of varying cost and
coverage. The homeowner has options to cover several different systems, such as
plumbing, electrical, heating and cooling. S/he also may choose coverage for
various household appliances, such as washers, dryers, refrigerators, microwaves
and so on. Some plans may also cover outdoor goods, like spas and swimming
pools. If a system or appliance malfunctions, the homeowner can call the warranty service center to start your claim *.
Should I Ask for a Home Warranty When Buying a House?
If you are a potential homeowner still at the stage of house hunting, the
existence of a home warranty might be a good thing to add to your checklist of
qualities you are seeking. You may even make it one of your terms for buying,
especially if the home is older and/or your walk-through indicates the major
appliances are aged. Although not a universal practice, sellers throw in a home
warranty so that, after the sale, the buyer does not have any ill-feeling toward
them if a household appliance or system breaks down.
Thought My Homeowner's Insurance Already Does This?
Not typically. Property insurance covers damage to a home's systems and
appliances when they have been destroyed by a fire or other catastrophe.
However, a good first step is to look over your property insurance policy with a
fine-toothed comb, or sit down with your insurance company's agent, and find out
what is covered. If you live in a flood- or earthquake-prone area, be sure you
have coverage. Check whether or not damaged or destroyed items will be covered
at replacement cost, not just at the price you paid for them.
How Do I Choose A Home Warranty Company?
Choose a home warranty company the same way you (hopefully) chose your property
insurance company: shop around. Check with family and friends to see whether
they have a home warranty, and how they rate their provider. Go online and check
various warranty companies' web sites. Look at how long they have been in
business and what coverage they offer. Do they have a testimonial section? Read
it. Try to find other reviews not directly associated with the company. Check
out a consumers' guide for home-related warranties and read what they have to
say.
What Kind of Price Range Am I Looking at for a Home Warranty?
Prices range from $250 to $600 per year. Like property insurance, homeowners pay
for the coming year. However, companies may offer discounts or promotions. If
none is posted on a company web site, be sure to ask for one, anyway. Home
warranty companies often request interested customers to call their toll-free
customer service number to speak with an agent regarding exact pricing. This is
partly because prices will range, depending on the region in which the homeowner
lives, and the age of the home and appliances/systems.
What If the Property I Am Interested in Covering Is a Rental?
Home warranties do not cover just primary residences. Rentals are included.
Although the warranty may cost more, it will be worth the price to know your
electrical, heating and other systems, as well as appliances, will be looked
after. Be sure your tenants know that a warranty is in place. You may also
consider taking the warranty's cost into consideration when setting the amount
of rent. Definitely speak with a warranty company representative to find out the
specifics, and how your rental property's warranty may vary from the one you
have on your own dwelling.
This information is some background on home warranties to arm you as you go out
on the search for one. If you have never had a warranty before, be sure to do
your homework. Even if you have had one in the past or currently, it might be a
good idea to check out companies again, to see if you can get a better deal or
more coverage. As with any form of insurance, do not become complacent with your
existing coverage.
* Not all home warranty coverage is identical and varies depending on the service provider and terms of their contract. Please request a sample contract to review individual coverage limits, service fees, and exclusions. In the event that Central Mass Home Warranty does not service or cover your geographical area, you may be contacted by a trusted home warranty partner that does. By submitting your quote request, you agree to these terms.
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