Limitations of home warranty

What is a home warranty?

A home warranty is a contract policy that covers the repairs and replacements of your home appliances and systems for a specific period usually for one year. A home warranty plan is an individual plan that entertains you by covering all components of home electrical, heating, cooling, and water systems and also home appliances. Some companies offer customized plans in which you can add other things like a pool, well pump, or a spa. 

Difference between a home warranty and home insurance 

You should be aware of the difference between a home warranty and home insurance, many people out there take both as the same thing, but they are different. Home insurance entertains you financially in case of damage caused by natural events like a windstorm or due to fire. On the other side, a home warranty protects your home appliances and systems damaged by normal wear and tear. 

Is the buying of a home warranty worth it? 

When you purchase a new house or new home appliances or systems, then it is recommended to buy a home warranty. A home warranty plan covers your home appliances and systems that are in good condition at the time of purchasing a home warranty. It will be weird to even imagine that your new refrigerator has stopped working, only after one year of purchasing when the manufacturer’s warranty has also been expired. Now it will take your hundreds or even thousands of dollars for fixation if you hadn’t purchased the home warranty. But if you are on a home warranty, then no need to worry because its fixation is not your problem, you only have to file an online claim and then the customer care service of home warranty providers will take care of the rest. 

Home warranty plans are normally for a specific period, and if your home appliances need fixation in that period, then a home warranty is obviously worth it. 

Limitations of home warranty plans 

Homebuyers usually complain about breaking or failure of home appliances and home systems within the first year of homeownership. So, many of them go with purchasing home warranty plans immediately after purchasing a home to get peace of mind. Few of them still don’t have peace of mind because they had not purchased the right policy or policy plan was not precisely made for them. So, here is a list of limitations of home warranty plans that you should be aware of before purchasing any home warranty policy.

• Total Home Protection
• Choice Home Warranty
• First Premier Home Warranty
• The Home Service Club
• American Home Sheild

All home types are not covered

Many properties like commercial or mixed-use are normally excluded from home warranty plans. Companies also don’t offer you plans for a mobile home, a home that has no permanent foundation or rented homes. So people with rented homes are in a miserable condition because they have to pay the house rents and maintenance of all appliances and systems is also their responsibility.

No choice between replacement and repair

When any of your home appliances or system will stop working, then it will be the warranty provider’s choice whether to repair it or replace it. So if your appliance is outdated or you don’t want to have it anymore, the home warranty providers most likely will go with repairing rather than purchasing a new one, because warranty providers want to spend money and time at your house more than absolutely necessary, in that case, you will not have any choice but to accept the service provider’s plan. 

No choice of repairing service providers

When any of your home appliances or system stops working, then you will file an online complaint or call service providers. Your warranty providers will contact the repairing service providers of their own choice and will send them to your place. You will not have any choice to opt for repair service providers whom you trust more. Homeowners could not only go with repair service providers of their own choice but they cannot dictate the time for repairing the appliance. 

Policy buyers might remain unprotected

Home warranty providers entertain their buyers when their appliances and systems are operationally failed due to normal wear and tear, not due to natural hazards like fire or windstorms. So despite buying a home warranty plan for their protection, they could be left vulnerable if the reason for the damage of their appliances is a natural disaster. 

Exclusion of poorly maintained items

The home warranty plans don’t cover every item at your house, which is their major drawback as they don’t entertain you for poorly maintained items. When a buyer buys a home, it is possible that the previous owner had not taken the proper care of home appliances and systems and had left many items in miserable condition. In that case, the new homeowner has to suffer because warranty providers will not take care of such items and their maintaining will be the owner’s responsibility. 

Paying of annual premiums

As home warranty providers cover the newly purchased items or the items which are maintained in good condition, such items are unlikely to have damage due to normal wear and tear. If you have purchased the policy, then you have to pay the premiums or deductibles whether they are worth it or not. So, all your home appliances and systems may work perfectly but you have to pay the annual deductibles that will cost you heavily. 

Wait times

If you have filed an online complaint about your damage, it will take time for the service providers to reach your place because they have to go through the proper channel. It might be a disturbing situation when you need a quick fix or have an emergency to wait for a long time. 

So, if a homeowner has suffered from any situation discussed above then home warranty plans are not worth buying but only a wastage of money. Many people are not fans of home warranty policies, rather they believe to save money for an emergency. If you are going to purchase a home warranty plan, it is recommended to do the proper research first and then go for it to save money and time. 

Reviewed Home Warranty Companies:

• Total Home Protection
• Choice Home Warranty
• First Premier Home Warranty
• The Home Service Club
• American Home Sheild