New home buyers are often on a tight budget which is why an unexpected expense, such as the cost of repairing or replacing an HVAC system, can cause a financial setback. For this reason, it is important to protect such an important investment as the new home. Home insurance is typically mandated by the lender, however not every breakdown or incident resulting in damage is covered by this insurance. This is why more new home buyers are choosing to purchase home warranties to supplement their home insurance.
A home warranty is not the same as home insurance. It is a service contract paid monthly that protects you in the event a covered breakdown occurs. The agreement reduces the cost to repair or replace many of the systems and appliances in your home. and it protects things that your homeowner’s insurance does not.
Home insurance usually applies when a natural disaster strikes your house and only covers for events that are out of your control like freezes, tornadoes, hurricanes, fires, floods, and theft. A home warranty is involved when something mechanical fails within your home, such as an appliance or home system due to normal wear and tear, as well as age, or the unit or system no longer has a valid manufacturer warranty.
Home warranty plans cover the home systems and appliances that you use everyday, no matter their age. Depending on the Plan, coverage can include major components of:
Heating and Cooling
Electrical Systems
Plumbing Systems
Kitchen Appliances
Laundry Appliances
If a new home buyer with a home warranty requires repair of a covered item that stops working, the warranty provider will dispatch a service professional as quickly as possible to the home and will make all reasonable efforts to initiate service for non-emergencies in no more than 48 hours after the request is processed. For an emergency issue, they will typically make all reasonable effort to initiate service within 24 hours after the request for service is received. When requesting a repair, the homeowner will pay a trade service fee. The fee is the deductible for that service call.
When searching for the best home warranty plans, it is helpful to do an assessment of all the appliances and home systems in the home to get an idea of how likely an appliance or system will fail and require repair or replacement. This will ensure you get exactly what you want covered in the policy.
When looking for a reputable home warranty company, check to see if the companies offer plans that can be customized, as well as offering bundled warranty plans and extended warranties. Some companies like ARW Home offer no term limit agreements so you can have the policy for as long as you want, and cancel at any time.
A home warranty is financial security for existing homeowners and new home buyers. The best home warranty plans offer fair premiums paid monthly, flexibility, and guaranteed peace of mind.
