It is almost here! So, are you ready to start getting hot? Start using your AC full time…let’s hope you don’t have any AC failures this year. If you have an old home, it may be time to consider buying a home warranty? These are service contract plans that help[ pay for some of the cost of repairing or replacing systems in your home.
Here is a great article you may want to review concerning home warranty plans:
Read MoreHere are the top 5 things you should know when shopping for a home warranty.
5. Unauthorized Repairs or Reimbursement: Calling a repair company and having a problem fixed—without prior approval from your home warranty—is not a good idea if you are expecting to be reimbursed. You should notify the home warranty company of a repair issue first, so they can send out an authorized service provider. On rare occasions, a home warranty company may provide you with an authorization to have the service performed by a contractor of your own selection.
4. Pre-existing Conditions, Improperly Installed or Mismatched Equipment, and Poorly Maintained Systems: Be sure home systems and appliances are in good working order upon the start date of a warranty. Any malfunctions or problems that fall into the above categories typically are not covered. However, some providers are now offering upgrades that include coverage for these issues that are normally denied. Home warranty plans typically only cover repairs or malfunctions caused by normal wear and tear.
3. Indirect, Special, or Consequential Damages: We recommend calling 911 if your home is on fire—not your home warranty company; they are the ones with the hose. This is another way of saying: home warranties do not cover damage from weather, accidents, acts of God, mold, fungus, structural changes, vandalism, pests and pet damage. So, if your water heater spills 50 gallons of water into your client’s house, the home warranty owes your client a new water heater, not a new carpet. Oh yeah, they also don’t typically cover damage caused by attempted repairs—so keep your husband away!
2. Items Outside the Perimeter of the Home: With the exception of your pool/spa and HVAC equipment, items outside the perimeter of your home are not typically covered by your home warranty plan. Some people are surprised to learn that the plumbing leak in the yard is not covered. But, it is a “home” warranty and not a “yard” warranty, and most home warranty contracts exclude these types of leaks from coverage.
1. Read the Contract: Do you read the back of your Valet ticket? We don’t either. But, we should. Unfortunately, you shouldn’t assume home warranty contracts are all the same. We encourage you to read and get an understanding of your home warranty contract, so you can use it more effectively. Yes, about 80% of the contracts of the various home warranty providers are similar, but that 20% difference can be substantial!
Read MoreBefore jumping into a home warranty–get comfortable with the basics. This article describes the rudimentary basics of home warranty plans.
First, a home warranty is a “residential service contract”. It is a CONTRACT. Therefore, it is important to be aware of what the contract says before buying it. I would ask for a sample from the company, or download one directly from there website. Now, these things are not easy to read, but if you really want to know what you are getting into–there is no better way than actually reading the contract. And, some of the coverage might surprise you…better to be surprised BEFORE you buy it than AFTER you buy it…
Second, for each service request, there is a “trade call fee” due at the time of service–even if the repair is denied. Typically, these trade call fees range from $55 to $75 per call. You pay them based on the trade and the call….in other words, a plumbing call with 3 plumbing problems included at all the same time would be one trade call fee. But, a plumbing and an appliance call would be two different trades–therefore, two different trade call fees would be due.
Third, home warranty plans only cost about $350 to $400 per year and cover a bunch of different systems and appliances. So, don’t get your hopes up–not everything will be covered every time. I am convinced that a good home warranty plan from an honest/fair dealing home warranty company is a great way to manage your home repair budget. For example, even if they deny a claim, paying $60 for a diagnosis is a lot cheaper than paying retail rates (which can be over $100 easily). If your A/C breaks, the retail prices for A/C repairs and replacements are HUGE…a typical HVAC system costs approximately $6,000 to $8,000…so getting good coverage in place is important.
I hope the basics got you interested in learning more…check out our other articles for more information on home warranties…and check back in our site from time to time to see the latest rankings.
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