Why do we need home warranties and what are the benefits within them?

Home warranties protect homeowners from repair costs that are not covered by home insurance. This includes plumbing, heating, air conditioning, and major appliances. Home warranties can help sell a home by providing the buyer with added protection and they also cover malfunctions of major appliances such as washers, dryers, ovens, and refrigerators.

Home warranties cover ductwork, plumbing, the electrical system, heating, and air-conditioning. If you want more than that, then you have to pay additional fees, and the warranty will extend to garbage disposals, doorbells, ceiling fans, garage-door openers, water softeners, trash compactors, and built-in microwaves.

Home warranties do not replace the homeowners insurance policy. Your homeowners insurance may pay for the damage to the linoleum, while the home warranty would cover the fridge. The cost for home warranties can estimate between $350 to $400 a year. The better conditions your home has, the less expenses premiums will be. When you do need to pay for repairs in an aging home, the costs can be raised quickly.

A home warranty has its own toll free number where you can call and make a claim. After their verification about your coverage, the company will dispatch an independent trade contractor to your home. And if there will be a problem then a contractor will diagnose it, and if it will be necessary he will repair or replace and the homeowner will have to pay a small service fee.

With home warranty companies, you may not limit the number of your made claims, but you will have to pay for the service call every time. A home warranty is as secure as the company that offers it. Each home warranty plan is unique in scope and services, with specific coverages, limits and exclusions. Before you buy your home warranty, you should review their contracts very carefully.

Before buying a home warranty, you should always understand the length of the contract and when it begins; look over the contract to understand what is, and is not, covered. Some contracts will list specifically what is covered; look over the procedures for reporting a claim. Some contracts require customers to call a claim number prior to ordering repairs to the product under warranty.

Warranties are available for buyers and are one-year service contracts that cover the repair or replacement of major home systems and appliances that break down due to normal wear and tear.

Consumers need to remember that home warranties are not a catch-all tool to cover problems existing prior to the time a warranty is placed on a home. They will not address every possible concern, but a good policy may make them a little more comfortable with their purchase or sale, if they are warranting a second home and do not live in the area.

The home warranty program may not be for everyone. You should contact your real estate professional for warranty coverage and company information and recommendations.