When you own a home, you are financially responsible for replacing or repairing a broken home appliance or system. Search expenses are uncalled because you cannot predict when any of your systems will go south. One intelligent way to pro wallet from such expenses is having a home warranty policy for your major home appliances and systems. In this article, we are going to tell you if having a home warranty plan is worth the expense.
What is a home warranty plan?
A home warranty annual plan that covers the repairing or replacement cost of covered home appliances and systems That break down due to regular wire and tear. Home warranty companies also provide additional coverage for larger systems like HVAC, automatic garage opener, garbage disposals but customers have to pay additional money for that.
A lot of people misunderstand home warranty policy with home insurance. the truth is both are different coverage. Home insurance covers the structural damages to your house due to theft, burglary fire, or any other types of natural disasters. it doesn't cover your home appliances and systems. Home warranty policy covers the repairing or replacement costs of the appliances and systems due to regular wear and tear.
How does a home warranty policy work?
Once you have a home warranty policy, you have to follow a particular process to file a claim. If any of your covered items break down, you have to follow these processes
File a service request claim: let your home warranty company know about the issue. Inform them how your item is broken and the manufacturer of it.
Schedule an appointment: your home warranty company will assign a registered service repairing professional and you can schedule an appointment at the time when you are comfortable. They are home rental companies that allow you to use your repairing service professional.
Repair or replace the item: the home warranty company will assign a professional repairing person to diagnose the problem with your item. if it is repairable, the professional person will do that, or if not your home warranty company will replace the item.
Pay a service fee: whenever you make a claim and once the service professional arrives at your doorstep to diagnose the issue and fix the problem, you have to pay a service fee called the deductible. The deductible amount ranges between $30 to $60 and it can be negotiated at the time of purchasing the plan.
What does a home warranty plan cover?
Different home warranty companies offer various types of coverages and plans. The plan that you should consider depends on your requirements and budget. Most home warranty companies offer three types of plans-
System plans: Such plans cover crucial home systems like electrical plumbing and air conditioning. it doesn't cover your home appliances.
Appliances plan: this type of plan covers your home appliances like refrigerator, ovens, washer and dryers, dishwasher, heater, etc.
Combination plan: These types of plans are little comprehensive ones As they cover both your home appliances and systems.