Tag Archives for " Home Warranty "

November 12, 2014

A Brief Guide On Home Warranty

A Brief Guide On Home Warranty

As a homeowner, you have to be prepared to face the common households problems – a faulty household appliance, a leaking faucet, or a short circuit. However, there are some problems we cannot resolve on our own and we need to seek the help of a professional who has more skills, knowledge and experience in dealing with such situations. This also means you have to pay them for their services. This is where a home warranty policy comes in handy. Haven’t heard of it? Better continue reading to learn more about it.

What is a home warranty?

A home warranty refers to a service contract that covers repairs and replacement of your appliances and other systems within your home. This should not be confused with homeowners insurance since the latter covers major perils like fires, hail, property crimes along with certain types of water damage that affects the entire structure of the house and the personal possessions of the homeowner. Home warranty, on the other hand, covers only specific components of the home.

How much does a home warranty costs?

The costs of a home warranty vary on the level of coverage that you purchase. However, the typical annual premium ranges from $250 to $500 along with a fee per service incident which usually costs $50 to $75. Luckily, home warranty companies sometimes offer special sales, discount policy prices, and/or additional coverage for the same price.

How does a home warranty work?

Although there are different plans that provide specific types of coverage, most policies work the same way. To start, the home appliance or system breaks down or stops working, hence, the homeowner calls the home warranty company. The company gets in touch with a service provider, which it has a business arrangement with and the specific provider contacts the homeowner to make an appointment. The provider will try to resolve the problem, however, if it’s unfixable, the company will pay to replace and install the appliance depending on the warranty coverage. The homeowner will also need to pay a trade service fee, which is usually less than $100.

What does a home warranty covers?

Home warranty plans are quite different but most of them cover things like major appliances (oven, refrigerator, dishwasher, microwave, washing machine) heating and cooling systems (air conditioners, heat pumps, furnaces), plumbing (faucets, swimming pools, sprinkler systems, indoor pipes and drains) and electrical systems (wiring, door bells, garage door openers).

Although a home warranty isn’t a perfect solution for the risks homeowners face, it’s still beneficial especially if you’re buying a home that comes with old components and appliances. Just be sure that before purchasing one, you thoroughly read the contract to determine whether the warranty is likely to pay off or not.

November 11, 2014

Pros and Cons of Purchasing Home Warranties

Pros and Cons of Purchasing Home Warranties

Are you in the process of buying a home? Has someone told you about buying a home warranty? If your answer to both questions is yes, you’re probably wondering whether this is necessary or not. To help you out with your dilemma, we have prepared below the benefits and drawbacks of buying a home warranty to help you decide if it’s worth it.


Provides you with peace of mind. The home structure and the items within it will need care and maintenance because eventually, it will falter. But if you purchase a home warranty, you don’t need to worry much on the expenses of repairing or replacing them as they’re covered by the warranty.

Huge savings on common repairs. One good thing about home warranties is that they help you save big on home items or systems that most commonly fail like kitchen ranges, plumbing system, and electrical systems.

You can get the warranty from the seller. If you purchase a home, you can get this warranty as part of your contract with the seller, which he/she usually pays for one year and afterwards, you can decide whether to continue or not depending on your needs.

Easy fix for any difficult repairs. You cannot always repair your home appliances and systems all by yourself. Sometimes, you’ll need the help of professionals get the job done. With a home warranty plan, the company can provide you with the right professionals to handle the particular problems you’re facing.


Paying for premium charges. As part of any coverage, you’ll need to pay a certain amount of coverage, which usually costs $500 to $600 a year, an amount that can be quite expensive for some homeowners.

Service providers choose repair over replacement. Even though your appliance is faltering every now and then, your service providers will choose to repair it than replace it as this will cost them more.

Waiting for the availability of the service provider. If something gets broken, you aren’t advised to call any professional since the home warranty company will not be reimbursing the service. The companies have their own service providers; therefore, every time you face a problem with your appliances or systems, you’ll need to wait for the availability of their service providers to solve the issue. Waiting time usually takes several days after your have informed them.

Limited coverage. A warranty plan does not cover everything within your household. Therefore, before buying a home warranty plan, be sure to read the documents carefully so you know what is covered and not.