For most homeowners, the term “home warranty coverage” can be slightly confusing. You might be wondering to know about the difference between a home warranty plan and home insurance. Well, ServicePlus is here to help you with all the information about home protection.
What is a home warranty?
A home warranty plan is an annual service contract that covers the expensive repairing or replacement cost of the major home appliances and systems.
Purchasing a home protection warranty plan is an optional investment and only applies to the regular wear and tear of home appliances and systems.
One thing you should know that the home warranty industry is not a new one as it came to the financial market in the nineteen seventies and has grown steadily ever since. Homeowners are the ones who purchase and take advantage of home warranty services.
Time to know about the home warranty coverage:
The coverage varies from company to company and their plans. But usually, it covers major home systems like plumbing, electrical, heating and air-conditioning and appliances like washer, dryer, refrigerator, dishwasher, etc.
A home warranty or home protection plan doesn’t cover the appliances or systems that have been misused, purposefully damaged and not maintained properly.
You should always know about what home protection companies call pre-existing or known conditions. Most contracts state that the repairs are not covered if the issues were documented before the start day of the plan.
If you have an old appliance that needs protection, make sure the appliance has a paper trail of known conditions and the contract lists it as covered.
Above everything, it is really important to check your home warranty contract very carefully before you sign it. It helps you best understand your coverage and its inclusions and exclusions.
How much does a home warranty plan cost?
It’s difficult to say the exact cost of a home warranty plan as most organizations prefer custom quotes for their customers. Usually, a home protection plan cost between $350 to $600.
On top of a plan cost, a customer usually pays a fee called service fee or deductible. It costs between $50 to $70. You have to pay the deductible directly to the service contractor who is appointed to determine if your system or appliance requires repairing or replacement and going to start working on it.
As a homeowner, you can also buy additional coverage for extra fees. The additional coverage may cost between $100 to $500 a year. People purchase additional coverage for items like pools, spans, roofing, etc.
How does a home warranty plan work?
It’s a simple process. If you find any of your covered home appliance or system is broken down or malfunctioning, you have to file a claim to your home warranty company and they will send a certified service professional in your area to diagnose your broken item and repair or replace it accordingly.
If you are planning to buy a perfectly tailored home warranty plan for your home, you should always buy it from a popular and legitimate home protection company like ServicePlus.
