A home warranty is an agreement provided to the homeowner covering repairs and replacement services for a certain duration. A home warranty imposes a house buyer to acknowledge the upkeep record verified by occasional assessment from the contract’s period. It can be related to a home insurance contract, which safeguards a home and its properties against robbery or defect.
How does a home warranty work?
Home warranty companies have commitments with authorized service providers. When something that is enclosed under a home warranty stops working the homeowner can call the home warranty company, which sends one of its service providers to investigate the problem.
If the provision specifies that the concerning repair or replacement is enclosed by the warranty, they complete the work. Home Warranty Company reviews give you an authentic view of home warranty companies from which you can choose the right one.
Pros of a Home Warranty
1-) Multiple protections
One objective of investing in a home warranty is the several levels of coverage it offers. There are plenty of home warranty service providers in the market who offer many packages.
2-) Simple fixation of problems.
You have to go through different procedures to get your household properties repaired. But with the help of a home warranty, you don’t have to worry about any of the hustles
3-) The steady rate for repairs
Even if you get the best specialist to fix your repairs this professional may miss some of the things. But in-home warranty the rate for the services is predominantly fixed.
A consumer could purchase a home warranty and then transfer it to the new owner if they sell the property.
Cons of a Home Warranty
1-) Not everything is covered
In certain cases, commercial or residential properties may be excluded. It may not be possible to obtain a warranty for a mobile home or another home not attached to a lasting basis.
2-) No guarantee
The warranty provider instructs whether a covered appliance or system should be repaired or replaced. This means that even when the appliance is old it may be fixed up rather than renewed.
3-) Can’t choose service providers
Warranty providers have a pact with service providers. Homeowners can’t select their own and also demand the period within which repairs will be made.
4-) Not applicable in all scenarios
Warranties cover operational failure of appliances and systems only under specific conditions. Conditions caused by acts of nature may be excluded and mostly covered by homeowners.
Cost of a home warranty
A home warranty costs several hundred dollars a year, paid in full or installments as per the policy of the service provider. The cost varies depending on the property type and whether the homeowner purchases a basic or a long plan.
The cost generally does not vary with the property’s age, unless the home is new, which raises the cost of coverage. The home’s square footage also does not affect the price in most cases, unless the property is more than 5,000 square feet. Separate structures, such as guest houses, usually are not covered by the basic policy but can be covered for an additional fee.
In addition to an annual premium, home warranties charge a service call fee. If the problem imposes more than one type of contractor to visit the homeowner may have to pay the service fee for each.