Table of Contents
On an ordinary Saturday, an ear-splitting noise shattered your peaceful weekend. Then you noticed the refrigerator was humming abnormally and the temperature was rising. And when you hurriedly call the maintenance man and begin to calculate the repair costs, you suddenly remember you just bought a home warranty. What will happen next? This little episode leads us to the topic of today's discussion: Home Warranty. So, what exactly is a home warranty? What kind of protection can it bring to our family? Let's find out.
A home warranty is a service contract that covers repairs or replacements of major home systems and appliances due to wear and tear. Unlike home insurance, which covers natural disasters and accidents, a home warranty covers issues that arise simply from use.
Simply put, a home warranty is like a “health insurance” for your home's appliances and systems. When something goes wrong with these appliances, you pay a flat fee for the service and the warranty company sends a professional maintenance man to repair or replace them as necessary.
Generally speaking, home warranties cover two broad areas: major appliances and major home systems. Major appliances would include such things as refrigerators, washers, dryers, stoves, and dishwashers. Major home systems would include heating, air conditioning, electrical, and plumbing systems. Some plans could also include additional items, like roof leaks, pool equipment, etc. Specific coverage will differ based on the warranty company and the specific plan you have bought, so be sure to read the terms of your contract carefully.
For any problem in your home related to a covered appliance or system, the homeowner calls the warranty company to report the problem. The warranty company then arranges to have an authorized repairer from their network of professionals make a call to your home. The maintenance man then diagnoses the problem and makes repairs or necessary replacements. In return for this protection, the homeowner pays a fixed service fee, normally well below the full cost of the repair/replacement. In situations where the problem cannot be repaired, the warranty company, by its terms of contract, is obliged to provide either a replacement service or reimbursement.
A home warranty offers homeowners several benefits. First, it helps keep budgets in check by avoiding unexpected large expenditures through fixed annual fees and service charges. Secondly, the convenience offered by a warranty company makes it easy to find repair services without the hassle of finding a reliable maintenance man. Additionally, it provides homeowners with a psychological relief, especially for new homeowners or second-home buyers. Finally, home warranties are often transferable, which can be an attractive plus for buyers when selling a home.
While there are many advantages to a home warranty, there are also some potential disadvantages. Warranty programs may have limitations on coverage, and certain brands or high-end appliances may not be covered. The quality of service may vary, as you must use a service provider designated by the warranty company. In addition, the warranty company may deny claims if the equipment is not properly maintained. When replacing equipment, companies may choose more economical models over high-end products. For homeowners with newer, reliable equipment, the cost of a warranty may be seen as an unnecessary expense.
Deciding whether to purchase a home warranty involves weighing a number of factors. First of all, consider the age of your home and equipment - older properties may be more in need of a warranty. Next, please assess your DIY skills and willingness to deal with household issues. Furthermore, look at your finances, including the adequacy of your emergency fund and your tolerance for risk. For new second-home buyers who don't know much about the condition of their home, a warranty may provide additional peace of mind. Finally, carefully compare the cost of an annual warranty with the potential cost of repairs to assess which option is more financially realistic for you. Consider all of these factors and choose the option that best suits your specific situation.
When considering the purchase of a home warranty, it is helpful to know the major providers on the market. Below are profiles of three top rated home warranty companies.
2-10 Home Buyers Warranty: Founded in 1980, 2-10 HBW is one of the largest home warranty companies in the US. Popular for its comprehensive coverage of not only appliances and systems, but also structural warranties. As one of the top home warranty companies, 2-10 HBW is unique because it offers up to a 10-year structural warranty on newly constructed homes, which is not available from many other companies. For existing homes, it offers a standard warranty program that includes appliances, systems and an optional roof warranty.
Founded in 1971 as an industry pioneer, American Home Shield was one of the first companies to offer a home warranty, and AHS is known for its flexible warranty programs that allow customers to customize coverage based on their needs. It offers three basic plans: Systems Only, Appliances Only, and Comprehensive with the ability to add additional coverage. Another advantage of AHS is its extensive service network, which covers virtually all areas of the US.
First American Home Warranty was founded in 1984 as part of First American Financial Corporation. It has become more and more popular among people because of its competitive pricing and good customer service. First American Home Warranty provides two main warranty plans: a basic program and a Premium one. And it also offers a “First Class Upgrade” option which is an upgrade that extends the coverage on items normally not covered, such as air conditioning refrigerant, and the cost of certain regulatory upgrades.
The home warranty is just like having an umbrella over your home, providing immediate assistance when the unexpected happens. It can help you keep your maintenance budget in check and reduce the uncertainty in your life. However, that doesn't mean everyone needs a home warranty. Weigh the pros and cons carefully, taking into account your specific situation, such as the condition of your home, your personal abilities, and your risk appetite. Whether you choose to purchase a home warranty or decide to deal with problems that may arise on your own, the most important thing is to feel comfortable and satisfied with your choice. In the end, whatever your decision, I hope this article has provided you with valuable information and new perspectives.
