Questions to ask about home warranty coverage

Last Updated: February 27, 2024

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Michael Rosenberg

Michael Rosenberg

Specializes in translating complex information into readable, engaging content. Michael@top10us.com

What is a home warranty and how it differs from home insurance?

A home warranty is a home appliances and systems protection plan that helps you to repair and replace your systems and equipment if they suddenly stop working. You don’t have to pay for repairing and replacing when you buy a contract with a home warranty company. There are various plans available, and you can choose according to your requirement. On the other hand, home insurance is designed to help you in case of any damage or loss of your property or home equipment like in a fire, or any natural disaster and you have to pay a deductible cost that is almost $500 to $1000 whenever you make a claim.  

What is the procedure for a home warranty?

After signing the contract with the company, you can call for their services in case of any damage. You just have to call them or submit your claim online. The company sends the service provider, and he will fix the damage. If they are unable to repair your appliances, then according to the contract, the company will pay the fee for its replacement. You just have to give the fee to the service provider that ranges from $5 to $50. Some companies offer plans without the fee of the service provider.

What kind of services do the home warranty companies provide?

The home warranty protects your appliances like a smoke detector, instant cold, and hot water dispensers, oven, water heater, toilets, cooktops, heating, and duck work. The companies also provide repairing and replacement services to your systems, such as HVAC, plumbing, telephone, and electricity. The coverage of your systems and appliances depends on the level of your contract. If you want the full protection plan for your home, then you have to pay more.

What is meant by premium and optional coverage?

If you want to protect all equipment along with the appliances and systems, then you should buy premium coverage. In the simple contract, the company will take of your appliances like the dishwasher and with the premium coverage, they will also protect the component like racks, door seals, baskets, and rollers.

The optional coverage is extra coverage that you buy for your kitchen, pool, and other equipment. The home warranty company will charge an extra fee for optional coverage when you sign the contract.

What is the cost of a home warranty and is its value worth the cost?

The cost of home warranties depends on the coverage you want to avail. The annual premium for basic home appliances would be $300 to $500 and the cost varies from company to company. When you call for service, you will pay the fee of the service provider at every call that would be almost $5 to $50.

If you buy a newly constructed home, then you must buy a warranty for your home. The company will take care of your appliances and systems for you. It will save you money that could be spent on repairing and replacing the equipment and appliances.

How can the home warranty help you in maintaining your budget?

The company will give you the coverage according to your requirement when you sign a contract. They will repair and replace the appliances when needed. You don’t have to pay for repairing fee. You will just give the fee to the service provider that would be very minute as compared to buying a new system or appliances for your home. In case of any tragedy, you don’t have to use your money in buying and repairing home equipment, which will help you in managing your budget.  

What is the limitation of making claims to the contracted company and can they deny the claim?

There is no limitation in making claims. You can make a call at any time whenever you need the service. On just your one call the company will send their technicians to assess and fix the problem.  

The company will deny the claim if the problem is caused by improper installation of systems, fault in appliances before the contract, or if you failed to maintain them.

Why you need a home warranty while having home insurance?

Home insurance gives protection to your home and your belongings from any damage due to crimes or any natural disaster such as fire, tree fall, wind flooding, and lightning. But it does not provide coverage to the issues caused due to aging or normal wear and tear.  Home warranty plans give coverage to your household systems and appliances from breakdown, and it helps you to maintain your budget. So, a home warranty is totally different from home insurance and you can choose both to live a comfortable life.

When and how you can call for warranty services?

Whenever your system or appliance stops working, you can call the customer support service of that company and register your claim. Your call will be immediately answered by the company, they will send the technician and he will determine the problem and fix it if it is possible. The warranty company provides you 24/7 service. 

What is meant by home inspection?

It is a procedure in which an inspection team visits your home and monitors the condition of your home system and appliances. They make a comprehensive report and mention all the problems in it. Based on that report, the company will sign the contract with you.

Can anyone renew the warranty plan at any time?

The coverage plan begins a month after the payment, and they give the coverage for a year after the activation of the policy. If anyone wants to renew their plan, they have to wait for one year for the original contract to expire. The company will send a notification about the expiration date in advance and then they can renew their plan if they feel any failure in the previous one.   

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