Will Your Home Warranty Live Up to Expectations?

Author: Anita

Many people speculate on whether they really need home warranties. One way to decide is to analyze the cost of repairs to major systems and appliances should they break down. Heating systems may cost more than $1,000 to replace, while a hot water heater is likely to cost more than $400. You could spend thousands more if your electrical systems, plumbing, range or refrigerator need to be replaced. Compare this likely cost with cost of an annual premium and a service call charge, and you will be able to conclude whether it’s a viable choice to get a home warranty.

Buyer’s of newer real estate do not typically consider a home warranty because of obvious reasons. But items such as appliances are not usually covered under a builder warranty. You must decide for yourself whether or not you could foot the bill for a costly refrigerator repair should yours break for whatever reason. A builder warranty is very valuable though and the price is usually included in the cost of your home, so you won’t have the extra out-of-pocket expense. Another type of warranty is one offered by an independent third party company. This is a warranty that you purchase on your own, and they usually cost a few hundred dollars a year. This price can be a real bargain if your home is going to need repairs, because the policies usually last for at least 10 years.

Choosing a policy can be as simple as understanding which terms are the most beneficial for your specific situation. You need to determine whether the issues that concern you will be covered in the policy and to what extent. It is also important to understand your liability and obligation as a homeowner as regards to the maintenance. In most contracts, the warrantor requires that you contact them if you need assistance. They in turn send a contractor out to assess the problem. You will be responsible for the service charge, but any additional expense will typically be covered under the contract. Home warranties typically cover items like refrigerators, ovens, fans, indoor plumbing, heat and air conditioning, garbage disposals, telephone wiring, and electrical systems. You need to check the policy you are considering, however, because not every policy has comprehensive coverage. You also need to make sure that you do maintenance and avoid anything that could make your warranty void.

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Article Source: http://www.articlesbase.com/real-estate-articles/will-your-home-warranty-live-up-to-expectations-566245.html

About the Author:

Anita has a BA in English literature and writes for real estate interests.