What is a Home Warranty?
I get asked this question all the time, so I thought I would write a quick blog post to give some additional insight on the topic.
First we should clear the air and note that a home warranty is NOT a homeowners insurance policy. A warranty should not be a replacement for a homeowners policy. Homeowners insurance covers major issues such as hail damage, fire, crime, and certain water/flood damage (check your homeowners policy to be sure it covers flood damage before assuming you have this coverage). A home warranty won’t cover fire, hail, and other major damage.
A home warranty provides for repair and replacement service on items such as the AC, furnace, plumbing and electrical systems. Most home warrantys will also cover things such as the dishwasher, washer and dryer, and fridge.
Not all home warranties are the same. Its important to shop and compare coverage. Ask questions to find out how long after you take possession of the property before a claim can be made. Some home warranties have a basic policy with added coverage (for the AC as an example) at a premium charge.
When you make a claim against your home warranty, a service technician will come out. This will usually incur a call out charge between $50 and $100. If the technician determines that a repair or replacement is needed (and the item is covered) then they will complete the repair/replacement.
If you are in the process of selling your home, some home warranty companies offer a policy for the listing time you are on the market (usually 90 days or less). This assists in making sure that anything that clonks out right before closing can be repaired or replaced. This makes your home more attractive to potential buyers!!
If you are buying a home, speak to your Realtor about the home warranty companies they have worked with. No one is in a better position to relay client satisfaction with home warranty policies than your Realtor! I have recommendations and additional information if you want to reach out to me at 512-461-5781 or at email@example.com.