What Does a Home Warranty Actually Cover?
When you are looking for a home warranty, it is important to know what is covered. Many people think that a home warranty covers everything, but this isn’t the case.
In this guide, we will discuss what a home warranty actually covers. We will also provide some tips on how to choose the right policy for your needs.
What is a Home Warranty?
A home warranty is a policy that provides coverage for certain repairs or replacements to your home. The policy will usually cover major appliances, plumbing, and electrical systems. Here’s a guide going more into detail about what a home warranty is.
What Does a Home Warranty Actually Cover?
A home warranty typically covers the following items:
- Appliances - Refrigerator, stove, dishwasher, washer, and dryer.
- HVAC Systems - Furnace, air conditioner, water heater.
- Plumbing - Sinks, toilets, tubs, showers.
- Electrical - Circuit breakers, wiring, outlets.
Do I Need a Home Warranty If I Have Homeowners Insurance?
Many people wonder if they need a home warranty if they have homeowners insurance. The answer is it depends.
Homeowners insurance will typically cover damage to your home that is caused by an event, such as a fire or storm. A home warranty, on the other hand, covers damage that is not caused by an event.
Tips For Choosing a Home Warranty
Here are some tips for choosing a home warranty:
Consider the type of coverage
Make sure the policy covers the plumbing, appliances and electrical systems that you need.
Consider the deductible
The higher the deductible, the lower your premiums will be. However, make sure you can afford to pay the deductible if something goes wrong.
Consider the per-claim limit
The higher the per-claim limit, the more you will be able to claim in total.
Consider the length of the policy
Make sure the policy lasts as long as you need it to.
Compare prices
Shop around and compare prices to find the best deal.
When choosing a home warranty, it is important to consider the type of coverage that is offered.
Make sure the policy covers the areas that you need. Also, be sure to consider the deductible and the per-claim limit. It is never too late to get a home warranty.
12 Reasons You Need a Home Warranty
Now that you know what a home warranty is and what it covers, here are 12 reasons why you should have one:
1
You never know when something will go wrong
Appliances, plumbing, and electrical systems can break down at any time.
2
Your home is your biggest investment
Protect your investment with a home warranty.
3
Repairs can be expensive
A home warranty can save you money in the long run.
4
You don't have to worry about repairs
Let the professionals take care of the repairs while you relax.
5
Peace of mind
Knowing that you are covered for repairs gives you peace of mind.
6
You can customize your policy
Choose the coverage that is right for you.
7
It's affordable
Many home warranties are more affordable than you might think.
8
You can renew your policy
You can renew your home warranty policy every year or every other year.
9
Time management
A home warranty can help you save time because you don’t have to worry about repairs.
10
Value-added savings
Most home warranty companies also offer discounts on repairs for policyholders.
11
Added protection
In addition to repairs, many home warranty companies also offer replacements for appliances and other items.
12
No need for DIY
You don’t have to be a DIY expert to fix common problems.
9 Things NOT Covered by Your Home Warranty
While a home warranty typically covers most repairs, there are some things that it does not cover.
Here are some surprising things that are not covered by your home warranty:
1. Pre-existing conditions
If the appliance or system was broken before you purchased the policy, it would not be covered.
2. Damage caused by pets
If your pet damages an appliance or system, it will not be covered.
3. Accidents
If you accidentally break something, it will not be covered.
4. Mold or mildew
Mold and mildew are not covered by a home warranty.
5. Natural disasters
A home warranty does not cover damage caused by natural disasters, such as a hurricane or tornadoes.
6. The policy holder's negligence
If you are responsible for the damage, it will not be covered.
7. Replacement of components
If only a part of an appliance or system needs to be replaced, the full cost of the replacement will not be covered.
8. Garage doors and tracks
Garage doors and tracks are not typically covered by a home warranty.
9. Water Damage
Your home warranty will not cover water damage. But, there is a good chance your home insurance will.
Reasons Why a Home Warranty Claim Might Be Denied
While most home warranty claims are approved, sometimes they are denied. There are a few reasons why your claim might be denied:
- The damage was caused by something that is not covered by the policy.
- You did not follow the correct procedures for filing a claim.
- You did not have a valid policy at the time of the damage.
- The damage was caused by negligence or abuse.
If your claim is denied, you have the right to appeal.
How to Dispute Home Warranty Claim Denials?
If your home warranty claim is denied, you have the right to dispute the decision. There are a few steps that you can take:
Step #1
Contact the warranty company – The first step is to contact the insurance company and ask for an explanation of why your claim was denied.
Step #2
Request a review – You can request a review of your claim by the warranty company.
Step #3
File a complaint – If you are not happy with the company’s response, you can file a complaint.
Step #4
Hire an attorney – If you feel that your rights have been violated, you might want to consider hiring an attorney.
What Does a Home Warranty Cost?
Home warranties typically cost between $300 and $600 per year. However, the price can vary depending on the size of your home, the type of coverage you choose, and the company you buy from.
Plus, many home warranty companies offer discounts for multiple policies or for signing up for a policy early.
Is a Home Warranty Worth it?
While a home warranty is not necessary, it can be a valuable investment. A home warranty can cover the cost of repairs or replacements for appliances and systems in your home. A home warranty is worth it in certain cases.
If you are not sure if a home warranty is right for you, contact a home warranty company to discuss your options.
Frequently Asked Questions
1
How long is a home warranty good?
A home warranty is typically good for one year. However, the policy might vary depending on the home warranty company you buy from.
2
How do you know if you have a home warranty?
If you are not sure if you have a home warranty, contact your insurance company. If you recently purchased a home, review the documents from that sale, as home warranty policies are often laid out in those agreements.
3
Do home warranties cover leaking windows?
Most home warranties do not cover leaking windows. However, you should contact your home warranty company to find out specific details about your policy.
4
Do home warranties cover septic systems?
Septic systems are typically covered by home warranties. However, your home warranty company should be able to provide details on your policy.
5
Can home warranty coverage be transferred to the new owner if you sell your home?
Typically, home warranty coverage cannot be transferred to the new owner. However, you should contact your warranty company to find out for sure.
6
How does a warranty protect a consumer?
A warranty protects a consumer by covering the cost of repairs or replacements for appliances and systems in their home. If something goes wrong with one of these items, the warranty will cover the costs of fixing it.
A home warranty actually covers a lot of things. It is important to read the policy carefully so that you know what is and isn’t covered. If you have any questions, contact your home warranty company. They will be happy to help.