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How Does A Home Warranty Protection Plan Work? A Real Money Saver

July 15, 2021

The last thing a homebuyer wants after purchasing a new home is a broken or malfunctioning home appliance or system. It can really happen and you have to accept the fact. It’s always an intelligent idea to have a home protection or warranty plan so you don’t have to worry about it now or as you go forward- your home protection warranty plan will cover the expenses associated with the repairing or replacements of your broken home appliances or system. Especially if you are a first time homebuyer with prior experience of handling a home before, buying a home protection plan would be an excellent idea.

Who pays for the home warranty protection?

Whether a seller needs to pay for the home warranty plan or a buyer pays for the plan, it completely depends on the local customs. It’s beneficial for a seller to pay for a home warranty plan as buyers won’t be contacting the seller if a home appliance or system breaks down. A home protection plan keeps the sellers away from all the home appliances and system repairing or replacement related hassles.

How much does a home warranty cost?

Usually, these plans cost reasonable, ranging anywhere from $350 to $600 annually. The price of a home warranty plan depends on the coverage. Home warranty providers like ServicePlus Home Warranty often run special plans where they offer discounted annual prices or more coverage for the same prices.

Most companies offer yearly renewable plans for their customers.

How does a typical home warranty protection work?

There are some plans that offer specific types of coverage, while most plans offer similar types of coverages.

The home owners contact  the warranty provider if a home appliance or system breaks down or stops working.

The home warranty company informs this to one of their registered service providers

The registered service professional fixes the problem. The home warranty company covers the cost associated with the appliance or system repairing and installing

The home owners need to pay a small service fee for the visit. The fee can range anywhere between $75 to $100, depending upon the plan you have. You can negotiate and reduce the service fee or deductible amount at the time of purchasing a plan.

Usual coverage in a home warranty plan:

Items that typical home protection warranty plans cover are-   

  • Air conditioning
  • Kitchen appliances
  • Washers and dryers
  • Doorbells
  • Furnace/heating
  • Water heater
  • Ductwork to code
  • Garbage disposals
  • Inside plumbing stoppages
  • Ceiling fans
  • Electrical systems
  • Range and oven

The coverage can vary from location to location and company to company. It is always better to check a sample copy of a policy before finally choosing a specific one.

What are the excluded items in a home warranty plan?

One thing you must know that your home warranty plan doesn’t cover every broken item in your home.

Your plan may not cover-   

  • Outdoor items such as sprinklers
  • Faucet repairs, although this can vary
  • Refrigerators, washers, and dryers, or garage door openers
  • Spa or pools unless specific coverage is requested
  • Permit fees
  • Haul-away
  • Items that were broken before closing
  • Exclusions noted in the policy

Before investing your money into purchasing a home warranty plan, you should check the plan’s terms and conditions thoroughly to know what’s and what’s not covered by your plan.

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