Let’s be honest. Home repairs and replacements come when we least expect them. For instance, your refrigerator may break down when you need it most; alternatively, your plumbing system may fail to function. As you already know, these repair costs can be quite expensive, especially when you don’t have an emergency fund or some savings to reach for when you experience these unexpected costs.
Therefore, what do you do?
Many people choose to get a home warranty from a reliable company. Once you file a claim, the home warranty company will send a reliable service provider to fix the problem and cater for the repair and replacement costs. However, the only fee you will incur is the service fee, which the company will refer to as the trade call fee.
If you would like to know more about the home warranty, read on to find out the different types you will find in the market.
Are Home Warranties Worth It?
When looking for peace of mind, home warranty covers will provide that. Unlike home insurance, which covers replacement costs for damage to your home’s structure, theft, and injuries, the home warranty plan will cater for all repair and replacement costs. For instance, if you have an old HVAC whose manufacturer’s warranty is void, the cover will handle it.
They save you thousands of money, although you may have to pay several hundreds of thousands on an annual basis. If you want to make the investment worth it, ensure that you research well. Get to know what each plan offers, the cap limits, and the deductibles (trade call fees).
The Different Types Of Home Warranties
Primarily, the home warranty will cover all your home’s systems and appliances. These include ductwork, electrical, ductwork, heating, water heater, and interior plumbing systems. Appliances covered normally include dishwasher, garbage disposal, pool equipment, garage door opener, air conditioning, refrigerator, swimming pool, spa equipment, cooktop, oven, among other equipment.
Here are the types of home warranties you will come across:
A homeowner’s home warranty
The most basic type of home warranty is this one right here. It normally targets homeowners, landlords, and mobile homeowners who want to protect their systems and appliances. You can buy a cheap home warranty, which will cover a limited number of items, or a comprehensive option covering all your systems and appliances.
Homebuyer’s home warranty
While a homeowner’s home warranty is for people who already have homes, a homebuyer’s option targets people looking forward to buying a home. A home inspector will inspect all your systems and appliances to test and find defects in them. If they find any, the warranty provider may refuse to pay for any items that have defects in case of a breakdown.
The best way to tackle this problem is by taking note of the defects you find and renegotiating with the seller. Once you find a favourable agreement, you can use the amounts you save to do the necessary repairs and replacements.
Seller’s home warranty
Homeowners looking to sell their homes should get these warranties. The benefit of this type of home warranty is that you will do repairs and replacements at the most affordable prices. It will then give you an upper hand when negotiating the selling price with the buyer since you are sure everything is working properly. Further, the seller can transfer the cover to the new homeowner.
The different plans available include
Each home warranty company offers different plans, from basic to premium costs. If the company offers specific plans, this means that the company will only cater for certain systems and appliances and leave out the rest.
The second type of coverage is the optional coverage. Usually, these will provide coverage for extra systems like an extra refrigerator in your home. These are ideal for homeowners who have two similar items, such as two refrigerators.
Robust plans are the third type of coverage. They are comprehensive since they include cover for appliances such as trash compactors, ceiling fans, jetted bathtub motors, and so forth.
Most home warranty companies offer these three types of covers: the homeowner’s home warranty, seller’s home warranty, and the buyer’s home warranty. Be sure to consider all the types before selecting the most appropriate option for you. It provides peace of mind in case of any damages or breakdowns. And remember, you will find a variety of companies in the market. Therefore, here is a review to help you find the best home warranty plans at SFGate.com.