A home is most likely the largest investment that an individual will make. Taking care of that investments starts with protecting it. When purchasing a home, make sure that it’s covered by a home warranty plan.
What Is A Home Warranty?
A home warranty plan goes beyond homeowner’s insurance to help protect the belongings inside the home. The home warranty plan offers protection in case an appliance or system unexpectedly malfunctions or breaks. This is important for those buying a new home because you can’t be sure what condition appliances are in before moving into the house and having the opportunity to use them.
What Is Included?
A home protection plan vary greatly based on the area you’re buying a home in, how much coverage you need, and what your insurance provider has to offer. It’s common for a plan to offer the following:
- coverage for the heating system
- coverage for the plumbing system
- coverage for the electrical system
- replacement cost for major appliances such as washer & dryer, water heater, stove, and dishwasher
What Repairs Or Malfunctions Are Covered?
As with an insurance policy, a home warranty covers certain situations, but not others. Pre-existing issues are not covered under the home protection plan. Before buying the home, you can negotiate for these items to be replaced. For those items that are covered, you’ll be able to have them repaired or replaced if something goes wrong. Here’s how it works.
For example, you find that your dishwasher isn’t working properly. You, the homeowner, will call a toll free number to reach the warranty company. The company will put you in contact with the contractor. The contractor will assess and resolve the issue. Other than the cost of the service call and the deductible on the plan, the repair will be covered by the warranty insurance.
What Does This Mean For The Homebuyer?
As a home buyer, the last thing you want to be thinking about is whether the appliances in your new home are going to start malfunctioning. You expect things to be in good shape and work well. However, unexpected situations come up and a home protection plan can help you take care of these problems quickly. It’s a way for you to feel more confident with your purchase and have some assurance that you won’t be paying for repairs in the near future.