HOW DO HOME WARRANTIES WORK?

It doesn’t matter if you are buying a home, selling a home, or if you are simply a homeowner. Home Warranties come in handy no matter what situation you are in and here is how they work!  

You may be wondering if you need a Home Warranty. To give you some food for thought, a statistic from Home Repair and Remodel states that out of the 9 major appliances in a home- the life expectancy for these items is 13 years with a 68% fail rate in any given year. With that in mind, if you are in the market or think you may be in the market for a home warranty, here are a few things to look out for.

Home Warranty Plans - Most companies provide 3-4 different coverage plans. There will always be a service/call out fee and that will usually depend on the coverage plan you select. These plans will all vary a bit in terms of what is covered. Generally speaking, all plans seem to cover the basic home appliances including HVAC systems.  Some plans have specialty coverage on certain items like permit fees or code violations which typically have a cap on them. 

 Repair 1st/Replace 2nd - This seems to be the motto across the board no matter which Home Warranty you choose. When trying to decide if an appliance needs to be repaired or replaced, the Home Warranty company should do its due diligence. In all practicality, they should determine if it is most cost effective to repair or replace the item. Just be sure you pay attention to service call out fees and caps on repairs so you aren’t surprised later down the line.

Does A Home Warranty Cover Roof - Some companies will repair certain damages on a roof and some companies will not. It could possibly depend on the state in which the property is located. If this is important to you, make sure you made aware of their roof policies, if they have any at all. Typically, you will pay an add on for roof coverage and there is usually a cap on repairs...this varies from company to company. I have not found a company who will actually replace the roof.

How to Make a Claim - Most, if not all, the home warranty companies have 800 numbers with a 24 hour 7 day a week call centers so you are always able to speak to someone right away. Another option is to log on to the website to chat with an agent or file a claim online. Whichever avenue you take, you should be able to get your issue taken to the next step.

Outside of Network Technicians - When you file a claim, the next step is to obviously send a technician out to the residence. If you have a specific handyman or technician you would like to use, it is worth calling and asking the Home Warranty company if they are able to make the repair. Most companies have no issue as long as that person is licensed and bonded in the state.

Ultimately, it is best to call around ask questions when trying to decide between Home Warranty companies. When it comes to your house, you can never over-informed!