When it comes to protecting your home against unexpected events, most people think that they need home insurance. Unfortunately, what they don’t realize is that home insurance protects your home against perils like theft, burglary, fire, hailstorms and other natural disasters but they don’t cover the costs of broken home appliances and systems due to regular wear and tear.
If you are looking forward to protecting your home appliances and systems, you need a home warranty plan. Unlike home insurance, your home warranty plan is designed to cover the costs of the replacement and repair of your broken appliances and systems.
Let’s take an example- if your air conditioning unit wears down, your home insurance won’t do anything for you but if it’s covered by a home warranty plan, they’ll cover the costs of replacing or repairing it. Your home warranty company will even a professional technician to your house to inspect the problem with the covered item and replace or repair it according to that.
What is the primary benefit of a home warranty plan?
You can understand the primary benefit of having a home warranty policy when you weigh their cost against the potential costs of replacing a home appliance or insurance.
For example, imagine that you have a home warranty plan when your HVAC system wears down suddenly. If it’s covered, you could get a new HVAC system, or at least, they would repair the faulty component of your HVAC so that it could work properly.
On the other hand, without a home warranty plan, you will be responsible for replacing the HVAC system and this could cost you paying almost $1,000 from your pocket depending on the HVAC system you have.
One thing you have to keep in mind is that home warranties do have a deductible or service fee as a part of their plan. It’s a small service fee that you need to pay when a professional repair person visits your property to inspect the issue with your covered item. This deductible is negotiable, and you can do that at the time of purchasing a home warranty plan. Usually, the more premium you pay, the less deductible it is.
How long does a home warranty plan last?
Generally, most home warranty companies offer plans that last for one year, but these plans are renewable so you can continue them as long as you want.
ServicePlus Home Warranty allows you to pay both annually and monthly. But, the advantage of paying the upfront annual fee is that you can take leverage excellent discounts and extra-months offers
How long does your home warranty plan take to become effective?
There’s a 30-day waiting period after purchasing a home warranty plan and completing all the formalities.
Do I need a home warranty plan when I have purchased a new home?
If it’s a new home with branded-new appliances and systems, you may not need a home warranty plan as they have already been covered by their respective manufacturer's warranties for a year. In that scenario, you can purchase a home warranty plan after one year.