If you own a house or plan to buy one, then you probably have to think about a home warranty or home insurance. Why? Because a home warranty can safeguard your investment along with your pocketbook. So, if by chance something goes wrong, a home warranty can provide distinct types of protection.
A home warranty generally refers to the contract which agrees to provide the homeowner with replacement services. Although, the term home warranty is always used widely to mean the legal warranty that is being conveyed. So, in many cases, especially in countries like the united states, a home warranty does not consider as a warranty at all. Instead, it is a home service contract which covers all the replacement and repair costs of home appliances and the major systems such as cooling and heating and possibly other components of homes, be it structural or otherwise! However, the coverage varies significantly across all the home warranty companies.
In real estate, a home warranty generally covers the appliances and systems in both new and pre-owned homes. Most of the home warranty companies typically offer three types of plans.
1. Appliance plans which cover for the washer/dryer, dishwasher etc.
2. System plans that cover plumbing and electrical systems.
3. Combination plan that covers all the appliance and system plans.
Some companies let you add the coverage for specific items and for an extra fee. But this is excluded from the standard plans. Some of the common add-ons include pools, spas, wells and lawns.
When it comes to discussing the cost of a home warranty, it is based on two fees.
1. Monthly or annual fee- you need to pay this if you want to get an access to the discounted service calls. However, it depends on how and where you live or what you plan to buy.
2. Service fee- this is the amount one pays each time they request for repairs for a covered appliance. Most companies offer different types of fee levels.
So, the bottom line is home warranty costs when any appliance or major household system breaks down. But these warranties are optional, and they provide an extra layer of protection so that you can have a peace of mind. And above all, they make the most sense if the standard warranty no longer covers your systems or home appliances.
