10 Frequently Asked Questions Regarding Home Warranties

1. What Is A Home Warranty?

A home warranty or appliance protection plan is a service agreement that covers your household appliances and systems during breakdowns, thereby protecting your budget. When an insured device malfunctions, it is either repaired or replaced.

2. How Does A Home Warranty Work?

In case of an unexpected appliance/ system breakdown, you can open a claim by calling customer support or reporting it online. The home warranty company sends a technician to fix the issue. Most companies have around the clock customer service facility for processing claims.

3. What Major Appliances Are Covered In-Home Warranty?

Most basic plans cover major appliances and systems like heating, air conditioning, plumbing systems, electrical appliances, kitchen and laundry appliances, plumbing stoppages, toilets, sump pump, bathroom whirlpool motor pump, recirculating hot water pump, water heater, heating and ductwork, telephone system, central vacuum system, garage door opener, ceiling fans, attic and exhaust fans, smoke detectors, doorbells, dishwasher, range, oven, cooktops, built-in microwave, instant hot water dispenser, and trash compactor.

4. Who Pays For Home Warranty Coverage?

It all depends. Generally, the buyer pays the cost of a home warranty policy. However, the seller may buy a buyer’s policy to avoid certain liabilities that may occur after closing a deal. You can also buy a policy on existing homes.

5. When Does Coverage Begin?

For sellers: Usually, the coverage varies from company to company. Coverage begins when the enrollment form is received and continues through the listing agreement period. For buyers: Coverage begins at closing (when the title is transferred and payment is received). For Existing Homeowners: Generally, coverage is effective 30 days after receipt of funds. Check with the contract guidelines to confirm the duration.

6. What Are Deductibles Or Service Call Fees?

A standard service fee/deductible is a nominal fee charged each time you raise an issue. Some repairs may require more than one service partner or several unrelated visits to the house by the same service partner, and a service call fee is charged for each visit. If a contractor has to order parts and come back to your house later to complete the repairs, this visit would not require an additional deductible.

7. What Can Cause Denial Of Claims?

Denial of claims may be caused due to code violations, unusual wear and tear, improper installation, pre-existing conditions, and in some cases, issues due to improper maintenance. Some companies, however, do cover damages resulting from lack of maintenance.

8. How Do I Request For Warranty Service?

You must have received your Home Protection Kit after having purchased warranty coverage, within which you will be able to find all the information and materials you need on the service contract. You have several options, and you can locate the toll-free numbers of the service providers and place a call to them. Your call should be immediately answered by a customer service representative who will expedite your request.

9. What Is Home Buyer’s Protection?

A home buyer’s protection plan is a service contract that covers repairs and replacements of insured appliances and systems like electrical, plumbing, and heating systems and built-in appliances that are not covered by regular homeowner’s insurance.

10. I Have Homeowner’s Insurance, Then Why Do I Need A Home Warranty?

Homeowner’s insurance protects personal belongings and the entire house from damages due to burglary, crimes, or natural disasters such as fire, lightning, tree fall, and certain other explicitly mentioned perils. Still, it does not cover issues caused due to wear and tear or age. Home warranty plans cover your household appliances and systems from breakdowns and less risk on your budget. When an insured device malfunctions, it is either repaired or replaced by the warranty company.