Homeowner Warranty And Its Benefits
What Is A Homeowner Warranty?
If you are a first time homeowner, you can no longer contact your landlord when things break down at your home. There are many things that can go wrong in a home such as appliance break downs, roof leaks, well and septic break downs among to name a few. By having a homeowner warranty insurance policy, homeowners can gain a peace of mind in the event things go wrong. The items that are covered on a homeowner warranty program is not covered by the homeowners insurance policy. There are various types of home warranty insurance programs and before you purchase and sign on the dotted line of a home warranty policy, make sure that you read and understand the homeowner warranty policy and its deductible.
New Homeowner Warranty
When you purchase a new home from a home builder, chances are the home will come with a home warranty. New homes can have a full home warranty without a deductible for the first year and a limited home warranty with deductibles up to ten years. Home warranty for new homes for the first year may cover everything which includes appliances, workmanship, mold, punch lists, and defective fixtures. The longer term warranty normally includes roofing, foundation, heating, plumbing, air conditioning, electrical, and other non wear and tear items.
Pre-Owned Homeowner Warranty
Pre-owned home warranty covers regular wear and tear items. Pre-existing conditions that are found in older homes are not covered. Most home warranty programs cost between $500 and $1,000 per year and most home warranty programs do have deductibles and service call fees that can range from $100 and up.
Home warranty policies can be purchased by the home buyer. Many home sellers offer home warranties as part of their seller’s incentive to new home buyers to make the deal more attractive. Sometimes realtors purchase home warranty policies to their home buyers as a courtesy for their business or their marketing program. Home warranties are available for one year terms and can be renewed each year thereafter. It is a wise choice to purchase a home warranty at least for the first year for a pre-owned home.
How To File A Claim On Your Homeowner Warranty
Whatever is on your home warranty agreement, it will be covered. In the event if your heating system breaks down and it is covered under your home warranty policy, the policy holder needs to contact the management company that overseas the home warranty program. They will then dispatch a licensed heating contractor who is on their approved vendor list to correct the problem to working order. The heating contractor will charge you the deductible and the service fee that is agreed upon your home warranty contract. These will be set fees and anything above the deductible and standard service fee will be covered under your home warranty contract and agreement. You will probably get a home warranty renewal contract every year and there might be a renewal fee, depending on the home warranty company.
If you are looking for a reputable home warranty company, ask your real estate agent. Most real estate agents have a team of reputable contractors and vendors who they normally work with and also know the third party vendors and contractors who you should stay away from.