Should You Consider a Home Warranty?

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A home warranty should not be confused with insurance. Home insurance covers the contents of the home and the structure. Whereas the warranty will cover major appliances that are within the home like the air conditioning unit, the water heater, and so on.

What Does A Home Warranty Cover?

It will cover the replacement or the repair of them. Here is a list of items that most home warranties cover.

  • Investing in a Lake HomeAir Conditioner
  • Heater
  • Water Heater
  • Dishwasher
  • Refrigerator
  • Stove
  • Plumbing
  • Electrical
  • Microwave
  • Washer
  • Dryer
  • Roof

Home warranties are gaining in popularity with both sellers, as well as buyers. The warranty will protect the owners and keep the buyers or renters happy.

The sellers use them in order to protect their home while it is being sold and use it as an incentive to buyers. Buyers use them to protect them from repairs that prove to be very expensive and unpredictable.

Home Warranty Pricing

Warranties are typically inexpensive. It can range from $250 to $1000, which depends on the coverage that you would like to have.

It is normally paid for an entire year up front, therefore the price should be divided by 12 to show you that the monthly cost is fairly low. Once the policy has expired, you can renew it.

Home Warranty Plans

There are many plans that are offered by different companies. Each plan will offer different coverage. Be sure to fully read the entire plan before selecting one.

Make sure that the plan covers all of the aspects of your home that you need it to. The procedure in which you will use the warranty plan is as followed:

  • Once an appliance or home system stops working or breaks, the owner will call the company.
  • The company will call the provider.
  • The provider will call the homeowner and make the appointment to access the problem.
  • The provider will then fix the problem. It will begin with a possibility of repair. If the system or appliance cannot be repaired, then the provider will replace it.
  • The owner will end up paying for the service call, but not the appliance or anything else.

The Service Contract Industry Council has stated that there are actually 32 states in which a home warranty is required to register or get a license.

It is ultimately in the best interest of everyone involved for a warranty to be purchased. When you are shopping for an appropriate warranty, it is best to ensure that the warranty cover all of the primary aspects of a home.

Pay attention to the fees and weigh the options. Make sure that the warranty covers all of the major appliances and the systems that the home includes. Also you will need to ensure that you look at the reviews of the companies to ensure they provide impeccable customer service.

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Glenn S. Phillips is the CEO of Lake Homes Realty. He is also an author and speaker. When not thinking about real estate and technology, he periodically plays his ugly tuba (complete with a bullet hole), enjoys exploring cognitive thinking, and prefers dark chocolate.

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