What You Need To Know About A Home Warranty

Karin Carr, Owner
Published on October 5, 2022

Many new homeowners are confused by the term “home warranty.” You might be wondering what the difference is between a house warranty and homeowners insurance. Don’t worry, we’re here to help you comprehend house warranties by addressing some basic questions.

A home warranty is not the same as home insurance

Let’s start by defining what a house warranty isn’t. The misunderstanding that home warranties and home insurance are interchangeable is one of the most prevalent. Home warranties and home insurance are not interchangeable. Home insurance protects the structure of your house against theft or natural calamities like floods and fires.

On the contrary hand, a home warranty only covers the appliances and systems that are included in the house, not the complete structural basis. These are internal systems, such as your plumbing, heating, and cooling systems. A refrigerator, dishwasher, stove, range, or cooktop, as well as your washer and dryer, are some examples of equipment that may be covered.

For all sorts of homeowners, different home warranty providers offer varying levels of coverage at various pricing ranges. Customers of Landmark are able to select from a variety of home warranty options that cover various combinations of these appliances and systems. Depending on the appliances you have within your house, some plans enable you to choose the appliance warranties you desire!

What does a home warranty cover?

Depending on the organization and plan, mechanical systems including plumbing, electricity, HVAC, and air conditioning are typically covered by home warranty providers. The vast majority of home warranty providers also provide plans that include appliances. These include appliances like ovens, washers, dryers, dishwashers, and refrigerators.

The extent of your insurance will differ from company to employer and plan to plan, as you might expect. However, mechanical systems or household appliances that have been intentionally destroyed, accidentally misused, or maintained insufficiently are generally not covered by home warranties. Similar to this, some house warranty providers won’t replace non-mechanical components like handles or knobs.

Watch out for what businesses refer to as “pre-existing conditions” or “known conditions,” as well. Home warranty agreements typically state that repairs aren’t covered if issues or flaws were discovered prior to the commencement of your coverage. It’s not entirely clear how businesses decide this. Some businesses compare the results of a house inspection with records of prior service calls before making a determination.

What You Need To Know About A Home Warranty

You should think about whether your old appliance has a history of recognized issues and check your contract to see if it is listed as a protected item or if you would like a home warranty to cover it. These are just a few of the things you should double-check to make sure you can afford them.

To truly understand your insurance, including any restrictions or exclusions, you should completely study your home warranty contract before and after you sign it. Although it may sound repetitive and uninteresting, certain restrictions may specify the precise amount of money your home warranty agency will spend on repairs or replacements of things that are covered.

What is the price of a home warranty?

House warranty plans typically cost between $350 and $500 a year, while exact costs might be difficult to determine because the majority of home warranty firms choose custom quotes to standard pricing. Home warranty providers base these costs on a number of variables, including the size of the home and what they refer to as “loss history.” When considering loss history, businesses often take into account two key factors: the likelihood that a covered item may malfunction and the normal cost to fix or replace it.

Homeowners typically pay a service fee in addition to the plan expenses, which can range from $50 to $75 for every repair. The contractor that is sent to assess and fix your home will receive this cash directly. The best part is that it’s a one-time payment, and the rest of the expenses related to your claim should be covered by your home warranty premium.

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