People have realized the importance of spending time together after the onset of coronavirus. Of course, one reason is that people need to distance themselves from the outside world. It is an excellent way of connecting more with your family, but it also has another side. We use the appliances at our home more often, putting more pressure on our home’s systems. The products are used to such frequent usage, so the wear and tear chances are more. Sometimes the issue is small, so you won’t have to spend much, but you cannot wait for a more significant problem to arise. It will cost you more, and that’s why we are discussing what does a home warranty cover.
Difference Between Home Warranty and Homeowner’s insurance
People misunderstand a home warranty for homeowners insurance. There is a difference between these two. The latter covers acts of water, fire, or nature that lead to damage to your home’s structure. Sometimes it even provides coverage for stolen items inside your house if they are on the list. Lenders and banks demand homeowners insurance while it is not valid for a home warranty.
If you wish to buy coverage for your home appliances, you can opt for a home warranty. For this, you have to pay a premium amount either on a monthly or yearly basis. It will help in dealing with the cost of repairing the appliances and systems. In the worst-case scenario, even the replacement of the product is possible. It is different from insurance. You can call it a contract that the home warranty company signs with the owner of the house. The contract list the items that come under home warranty cover and keeps you at ease when needed.
What Does A Home Warranty Cover?
It is important to note that home warranty coverage has variation depending on the company you choose. Still, there are a few appliances that are common between multiple home warranty companies.
Some Common Home Warranty Coverage
- Equipment In Pool
- Garage’s door opener
- Air conditioner
- Garbage Disposal
Various types of plans cover these appliances and systems differently. Let’s have a look at them.
#1: Certain Plans
Some companies like to offer plans that provide coverage for only specific systems. It could be for ventilation, heating, and even air conditioning. The companies are ready to provide you with appliance-specific plans. Isn’t it a great move? You don’t have to spend a considerable amount buying a home warranty for items you do not wish to purchase coverage for. You can choose a home warranty program like this to cover specific things that even the manufacturer’s warranty doesn’t cover.
#2: Optional Plans For Coverage
Whether you live at a high-risk place or not also influences the home warranty plans, you might need coverage for a septic tank or even a sump pump. Make sure you check the standard warranty plan for the optional products list. It means they are not necessarily covered. Also, if you have two refrigerators, then don’t expect a home warranty to cover both. There is a coverage limit, and it is standard for one refrigerator only. You have to pay an extra amount for more coverage.
#3: Robust Or Strong Plans
These plans provide coverage for multiple appliances, which, if they fail, require a considerable investment. We are talking about appliances like free-standing ice machines. Other than that, you can expect coverage for ceiling fans, motors, and pumps too. Another fantastic coverage option is for re-keying service. For example, if you shift to a house and don’t want to spend on the lock just after shifting, this service coverage comes to your rescue. A home warranty cover with robust plans is a good move.
Home Warranty Coverage Plans Inclusions
The home warranty companies set certain limits to pay for the items that come under warranty. They will pay for the repair or replacement of the appliance or systems according to that limit. It depends on the devices too. For example, a geyser is broken, and you apply for getting benefits from the home warranty plan. The company will look into the data, and if it says that it will pay only up to $2000, then that’s what you get.
Similarly, the limits are set for other items like refrigerators, pipe leakage, oven, and more. It is just an example. The coverage ranges from $1000 to even $3500 for geysers or heating equipment. Another scenario could be that there is a set limit for all the appliances. Here, they set a limit of $3000 per device.
Home warranty companies are not going to pay for the repair or replacement of commercial-grade products. It could be Viking, Thermador, Sub-Zero, and others. The International Association founder that works for certified home inspectors said that faulty items are not under coverage.
Does Home Warranty Even Provide Coverage For The Roof?
Some do, and some don’t. It would be correct if we say that most companies do not offer coverage for the roof. The ones who are in favor of it only pay for the repair, not for replacement. They generally cover leakage. Again, this comes in another condition. The leak must not be on metal roofing. So it’s a whole big thing to understand. You must confirm from your home warranty company to know them in detail.
Buying your own house is the most significant decision of your life as it takes a lot of investment. Thus a warranty can be an excellent way of protecting or securing your investment. An adequate homeowners insurance combined with a home warranty can work wonders for you. They provide you with the peace of mind you are looking for after investing your money.
Consider quotations from multiple home warranty companies to get an idea of what is going on in the market. Be sure before you sign a contract with the home warranty company. Consult others if you are not sure about the terms. It will save you from nasty surprises in the future that others face when they neglect reading the full agreement. We hope you got your answers on what does a home warranty cover.