What Every Homeowner Should Know About Home Warranties
Pros and Cons
For most people, a home warranty offers peace of mind in the instances of unforeseen problems. A home warranty can also reduce the frustration that often comes with attempting to find the best service company for the problem. Read on for tips on how to determine if a home warranty is right for you.
Home warranties are designed to protect homeowners from unexpected repair costs for major appliances. Generally speaking, home warranties are ideal for homes with appliances over four years old. Warranties for new homes are supplied by builders and will typically cover any structural defects for up to a decade. Other items such as air conditioners, drywall, paint, plumbing, and electrical work may be covered anywhere from six months to two years.
For existing homes, warranty coverage options vary but include things such as interior plumbing, heating, electrical systems, water heaters, dishwashers, stoves, washer/dryers, refrigerators, air conditioners, garage door openers, pool equipment, garbage disposals and spa equipment.
Be cautious: Not all home warranties are beneficial; there are a number of limitations and exclusions which may apply. Claims have been denied because the company says the problem was pre-existing or because the consumer couldn’t prove that the broken item was properly maintained.
Make sure to research top companies with the most reliable and trustworthy track records.
Home warranty research tips:
- The Better Business Bureau recommends that consumers verify a company’s licensing by contacting your state’s real estate commission.
- Read documents thoroughly. Some providers hide their exclusions and limitations in the fine print. Read every word of the contract and understand the pros and...