How much for a home warranty is a fair deal? |
Posted: August 22, 2019 |
Home warranties can help protect you from taking a “financial hit when something goes wrong in your home. There are many types of home warranties with similar options. These warranties do not cover everything in your home. They can cover most situations, especially when combined with an insurance policy on the home.
What if you moved into a new (to you) home but the temperature was not right? You would turn on the air-conditioner or the heater. But then you realize that the heater/air-conditioner does not work. Maybe you have been in the home for a while. You subsequently find that the plumbing does not work as intended. Home warranties can cover expenses such as this. You only need to pay for the service call (deductible). It’s important to know how much a home warranty costs as it will make it much easier to stay within a tight budget.
This is the thing to pay attention for you to get the most value from your home warranty. There are different levels of service to receive depending on what level of policy you buy. For instance, some policies are cheaper but do not cover many crucial things. The trick for you is to decide what you want covered. Then be prepared to pay for the level of coverage that you want. For new homes, builders will often cover structural problems for 10 years (or less). Problems with wiring and cracks in the foundation are examples.
Typically, home warranties do not cover pre-existing problems. This applies if you have or have bought an older home. Basic coverage on a home usually excludes the washer/dryer, refrigerator, garage door opener, septic system, and/or the well pump. You can require these things covered in a policy, but it will cost you extra. When buying a used home, know that the seller will often include a home warranty. This will protect the buyer against unknown expenses after the purchase.
When you use your warranty, realize that the service agreement does not cover all costs involved with repairing or replacing the problem. If, for example, the freezer dies, a service tech will come to your house to diagnose the problem. You will need to pay a small service fee. The warranty provider will bear the rest of the repair/replace cost.
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