Buying A Home - Learn To Understand The Limitations Of Your Home Warranty Policy
As you near the end of your home buying transaction, one of the last priorities is the option of selecting a home warranty. These types of warranties are set up to fix and substitute covered broken or worn items with new ones. If you think your next property could be headed for some maintenance issues, make sure you apply for one prior to the closing of escrow.
Your home warranty will spell out which mechanical systems and built-in appliances will be covered. Most policies are written to repair and replace items such as plumbing, heater, and electrical components. If you're willing to invest more money, you can purchase additional coverage for items such as the air conditioner, whirlpool jacuzzi, pool, and roof. If a situation occurs where you have a breakdown with any of these items you can pick up the phone and contact your warranty company to determine what the problem is. If the warranty company agrees with you that the repair is part of your benefits you'll need to contribute a predetermined amount of money to cover parts and labor which can cost you between 60 to 100 dollars.
Unfortunately, it's easy to spend hours researching all the homeowner complaints filed against home warranty businesses. Many policy owners are as surprised to learn about the pre-existing clause in many warranties exclude repairs on any pre-existing problems. If you find a policy with this exclusion, make sure you're aware the policy will provide coverage only for new problems.
You'll also find most home warranty policies have extra exclusions which include repairs needed as a result of poor maintenance or servicing, faulty installations, and areas the inspector could not access. Some policies even refuse to cover the repair until you invest additional funds to upgrade the system to modern day building codes. Make sure you understand that most warranty policies won't cover repairs if they're not caused by everyday wear and tear.
If you shop around, you'll discover most warranty policies are priced somewhere between $300 to $1000 per year depending on the home size and type of benefits you choose. As you search for your new home, you'll find most sellers willing to include the first year of coverage as a gift for buying their home. Even your agent may even be willing to pay for the first year so you'll be satisfied with their service.
In the unlikely event you'll have to pay the premium for a home warranty, you may be better off putting money in a bank account set aside for an annual repair fund to cover unplanned repairs. If you can, try to set aside $5000 per year. This should provide adequate coverage for most major problems.
While there may be many homeowners dissatisfied with their policies, you will find some policyholders happy with their warranty. If you happen to get a repair person who is understanding and gets your repair approved, you'll benefit from having a policy. Make sure you study each warranty thoroughly and check out the exclusion clauses.
Check your state for any government agency which oversees home warranties. See if the company has a record of complaints on File.
Your home warranty will spell out which mechanical systems and built-in appliances will be covered. Most policies are written to repair and replace items such as plumbing, heater, and electrical components. If you're willing to invest more money, you can purchase additional coverage for items such as the air conditioner, whirlpool jacuzzi, pool, and roof. If a situation occurs where you have a breakdown with any of these items you can pick up the phone and contact your warranty company to determine what the problem is. If the warranty company agrees with you that the repair is part of your benefits you'll need to contribute a predetermined amount of money to cover parts and labor which can cost you between 60 to 100 dollars.
Unfortunately, it's easy to spend hours researching all the homeowner complaints filed against home warranty businesses. Many policy owners are as surprised to learn about the pre-existing clause in many warranties exclude repairs on any pre-existing problems. If you find a policy with this exclusion, make sure you're aware the policy will provide coverage only for new problems.
You'll also find most home warranty policies have extra exclusions which include repairs needed as a result of poor maintenance or servicing, faulty installations, and areas the inspector could not access. Some policies even refuse to cover the repair until you invest additional funds to upgrade the system to modern day building codes. Make sure you understand that most warranty policies won't cover repairs if they're not caused by everyday wear and tear.
If you shop around, you'll discover most warranty policies are priced somewhere between $300 to $1000 per year depending on the home size and type of benefits you choose. As you search for your new home, you'll find most sellers willing to include the first year of coverage as a gift for buying their home. Even your agent may even be willing to pay for the first year so you'll be satisfied with their service.
In the unlikely event you'll have to pay the premium for a home warranty, you may be better off putting money in a bank account set aside for an annual repair fund to cover unplanned repairs. If you can, try to set aside $5000 per year. This should provide adequate coverage for most major problems.
While there may be many homeowners dissatisfied with their policies, you will find some policyholders happy with their warranty. If you happen to get a repair person who is understanding and gets your repair approved, you'll benefit from having a policy. Make sure you study each warranty thoroughly and check out the exclusion clauses.
Check your state for any government agency which oversees home warranties. See if the company has a record of complaints on File.
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