Benefits of Purchasing a Home Warranty
The benefits of purchasing a home warranty are so numerous that we would be hard pressed to try and list them all in one article. However, if you are looking to purchase a home warranty for your new home renovation, you may feel it is important to educate yourself on the different types of home warranties available so you can make an informed decision. Home warranties cover the repair or replacement of a home appliance; some also cover roofing and framing as well as certain interior features such as cabinets, bathrooms, fireplaces, sinks, water heaters, and other similar areas.
Homeowner's insurance provides coverage for damage to a home due to events beyond the owner's control. Many home warranty plans also offer additional coverage for such things as subsidence and explosions. If your home is damaged due to a natural disaster, most homeowner's insurance will help you cover the cost of repair or replacement of the damaged property.
One of the most popular types of home warranties is the Standard Home Warranty, which typically cover your plumbing, heating system, electrical wiring, ceiling and flooring, as well as some outdoor features such as trees and landscape, but excludes kitchens, bathrooms, garages, outdoor pools, and storage sheds. Another popular type of home warranty program is the Special Home Warranty Plan. Special home warranties typically offer coverage for items such as appliances and flooring, but exclude certain bathrooms, kitchens, garages, and storage sheds.
If you decide to purchase a home warranty, it is important to realize the limitations of such a plan. Although it usually comes with the standard home warranty coverage, it may not cover any damages to your home caused by human negligence, fire, flooding, vandalism, or the wars (both US and International). Home warranties also do not normally cover problems associated with your appliances, water heater, or air conditioner. If these devices are covered under your homeowner's insurance policy, then additional coverage may be available. But please check with your homeowner's insurance company to determine what additional coverage may be included in your policy.
A good home warranty can give you peace of mind and financial protection, but it is important to know what coverage is offered. For example, certain parts of the house (including structural elements such as frames, walls, and floors) are generally covered by a standard homeowner's insurance policies. But if your home is equipped with appliances that are not covered by your homeowner's insurance policy, such as a washing machine or dryer, you will need to purchase additional coverage for these expensive devices.
In most cases, a warranty that comes with standard homeowner's insurance policies will give you one year of extended coverage at no additional cost. But be sure to read the fine print carefully so you know exactly what you're getting into. Also, it's wise to purchase an extended warranty from a company that has experience selling homeowner's insurance products. You want to make sure you are not only getting the coverage you need, but you are also paying a fair price for it.
If your house requires only minimal maintenance, then a basic warranty will probably do. But what if your home is more complex and requires more specialized equipment, such as air conditioning or heating system? If this is the case, then you will definitely want to invest in a specialized warranty plan. These plans usually cover repair or replacement of appliances, major electrical systems, plumbing system, and other installed components within the property. For example, if your air conditioning system is damaged or completely destroyed, then you would be able to get repair and replacement services performed for an agreed upon price up to the date of your policy expiration. However, be aware that many homeowners' insurance companies will require that any damage that occurs be repaired or replaced by a licensed technician who is working under their supervision.
There are many benefits of purchasing a home warranty, but it is important to keep in mind the limitations of such coverage. Most warranties do not cover damage caused by natural disasters, such as fires. If your house is flooded, then the manufacturer's warranty will most likely provide you with financial assistance to dry out your home. Also, the warranty may not cover damages resulting from crimes of vandalism, theft, or malicious mischief. As with all home warranties, there are usually several limitations, so be sure to read the small print before committing to one company.