What Is Home Warranty Insurance (Cost & Plans)

 

 Home Warranty Insurance (Cost and Plans)

in this article we're talking about home warranties insurance and will see its costs and plans and wethere it worth the money or not, so what does it cover?

so I personally have had probably three different home warranty companies over the last couple of years I'm very familiar with the process and so we're gonna keep this short and sweet and cover everything you need to know 

 What a home warranty is ? 

Is It Worth It? 

well it's basically just another form of insurance so you have homeowners insurance when you own a home and that covers major issues so that's the dwelling itself it'll cover your personal belongings and then oftentimes it will protect you against certain liabilities but you can think of homeowners insurance as protecting you for larger issues floods fires natural disasters if the wind blows down your entire fence bigger issues a home warranty while there are some overlapping characteristics with homeowners insurance it's fundamentally different and it covers different things so it's kind of like a smaller version of homeowners insurance so it'll cover typically two different things or both and those are appliances and your home systems so appliances would be your garbage disposal your dishwasher your washer and dryer your refrigerator those sorts of things your systems your home systems would be your HVAC system your furnace your water heater sometimes even your plumbing and then they'll oftentimes have combination plans

 so you'll see appliances you'll see home systems and then you'll also see a combination plan that kind of picks and chooses a few things and then creates a plan that combines both appliances and home systems.

 Now, I've even had a home warranty that actually covered pest control so once or twice a year I would see little you know critters in the garage cockroaches spiders whatever and I would file a service request and a pest control company would come out, so it's not common to see pest control but you will see different companies have different things that they will cover as part of their com plan.

 a few things that they won't cover so a lot of people think a home warranty covers the entire house it doesn't it covers again some specific items within the home and it does not cover regular service so you know it's not going to cover the cost of you know filters for your HVAC system or some of the filters that you would have in a refrigerator all the regular maintenance items that's on you it also will not or oftentimes will carve out different appliances that are not undergoing regular maintenance

 so if you're not having a technician out once or twice a year to look at your HVAC system or whatever that's important to you then sometimes that will actually be excluded from your home warranty because they're saying that you're not actually doing your job so why would they cover it and then anything that's covered under your homeowners insurance will not be protected by a home warranty so that's things like the structure itself your roof your fences any underground pipes concrete damage all that stuff ,

so if you're gonna buy a home warranty to protect underground pipes it's not a good idea because almost always they exclude underground pipes and any of the larger parts of your home .

 the way a home warranty works it's pretty simple :

you sign up for a plan so you pick the company that you want you pick the plan that you want and then usually they will not charge your credit card or cover you for 30 days and the reason they do that is because their wives - a lot of the tricks that people try to play so sometimes people will have the refrigerator break they'll then sign up for a home warranty and try and get it covered they are pretty wise to that so it'll take 30 days for the coverage to kick in and then if something does break or if you do have an issue all you do is either call them or most of these companies will have an online system you'll make a service request you'll get a call and you're scheduled an appointment now the home warranty company they work with contractors and technicians in your area they'll pick the one oftentimes it's ones that are really affordable or people they have a lot of trust in but sometimes the home warranty company will allow you to use your own technician !!
and I've done that and I've had pretty good results from that so that is something that you may want to look at in the contract whether or not you can use your own technician but let's say they assign somebody to you,  they'll usually come over and you know a matter of a couple of days depending on how busy they are they'll provide the service and then you have a deductible and so the deductible is usually between 50 and 150 dollars and that's so that you have skin in the game if you're having something repaired you pay a small oftentimes nominal fee and you save a lot of money

 so one of my examples is I bought a home it had an older HVAC system it had a heat pump out out in the backyard and that heat pump kept going out so I called the home warranty company they sent out a guy he replaced apart for a couple of months it worked they warranty did it for about 30 or 60 days and then the next time it broke they realized that it would probably cost them more money to continue to repair the machine than to just put in a whole entire new machine and that's what they did so instead of spending a couple of thousand dollars I was paying I actually didn't pay anything for the home warranty because I'd bought the home and it came with it and I just paid the deductible so I've had overwhelmingly positive experiences with home warranty companies I know not everybody is in favor of them but I think the system works great you file a service request you pay a deductible somebody comes out and they fix your items and the typical cost for home warranty is somewhere between 300 and 600 dollars a year so I don't know 20 to 60 dollars a month for a home warranty and if you are concerned about some of your systems or your appliances it can be a way to save a lot of money so that's what a home warranty is it's probably not right for everybody