Friday, April 22, 2016

Why Buying a Home Warranty is a Good Idea

The very last thing a home buyer needs to deal with after closing is the possibility of fixing a major home appliance or system in their new home. Because that can cover any number of items, it’s wise to invest in a good home warranty policy for peace of mind. It’s particularly a good idea to purchase a home warranty policy if you’re a first-time buyer with little to no experience in maintaining your home.

Types of Coverage

Since all plans are different, it’s important to note what aspects are specifically covered under the policy. You may want to ask your realtor if any upgrades are available as well. In general, pay close attention to whether or not the home warranty policy covers certain appliance and/or system repairs that are compliant with new or revised regulations. These details are important to know upfront rather than later on when you’re facing a major expense.

Buying Home Coverage

How Most Home Warranty Policies Work

Although certain plans offer specific kinds of coverage, most policies are very similar in how they work:

• If a home appliance or system breaks down or stops working altogether, the homeowner simply calls the home warranty company for help.

• The home warranty company contacts a provider whereby they already have an established business with in order to address the problem.

Home Warranty Policies

• The repair provider contacts the homeowner to set up an appointment.

• The provider then repairs the issue. If an appliance is broken and beyond repair, the home warranty company generally pays to have the appliance replaced and installed based on the contract coverage.

• The homeowner usually pays a small fee (usually under a $100) to the trade service provider.

homeowner usually

Why Homeowners Buy Home Warranties

One of the main reasons that a number of homeowners today buy home warranties, like those provided by American Home Shield, is primarily for the major appliance repair or replacement feature. Appliances can be extremely expensive to replace and for many people, having a major appliance malfunction beyond repair is an expense they just can’t afford due to many other financial responsibilities in their lives. Therefore, in the case of a faulty stove or refrigerator, homeowners can easily rely on their home warranty policy to address any appliances broken beyond repair.

broken appliance repair

For most cases, major home appliances that malfunction and can’t be repaired are covered under their policy. Often, you’ll be offered a new replacement appliance that’s very comparable to your current model, except it’s new. The majority of home warranties replace the malfunctioning appliance that’s beyond repair with a brand new one that’s equal to the one you currently have and will not demand that you receive one of a lesser quality to the original model.

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