1. Introduction
Residential home warranties are service contracts that help homeowners protect their investment by covering the costs of repairs or replacements of major home systems and appliances. This detailed report delves into the ins and outs of home warranties, including what they cover, what they do not cover, the differences between home warranties and homeowners insurance, and costs involved. We will also discuss the myths surrounding home warranties and examine who typically provides them, whether it be the buyer or the seller.
2. What do home warranties typically cover?
- Heating, ventilation, and air conditioning (HVAC) systems
- Plumbing systems
- Electrical systems
- Water heaters
- Kitchen appliances such as ovens, stoves, and dishwashers
- Clothes washers and dryers
- Garage door openers
- Built-in microwaves
3. What do home warranties NOT cover?
- Structural components, such as the foundation or roof
- Exterior components like siding, windows, and doors
- Swimming pools or spas (unless specified in the contract)
- Pest control or damage caused by pests
- Cosmetic defects or routine maintenance tasks
- Items that have not been properly maintained or have pre-existing conditions
4. Home warranty vs. homeowners insurance
A home warranty is a service contract that covers repairs and replacements of home systems and appliances, whereas homeowners insurance is a policy that protects homeowners from financial loss due to unforeseen events, such as fires, theft, or natural disasters. Homeowners insurance covers the structure of the home, personal property, and liability, while a home warranty covers specific systems and appliances within the home.
5. Myths about home warranties
- Myth: Home warranties cover everything in the home.
- Fact: Home warranties only cover specific systems and appliances listed in the contract, and they do not cover structural components or cosmetic defects.
- Myth: Home warranties are not worth the cost.
- Fact: While home warranties may not be necessary for everyone, they can provide peace of mind and financial protection for homeowners, particularly those with older homes or costly appliances.
6. Costs involved
The cost of a home warranty can vary based on factors such as location, coverage, and the company providing the warranty. Home warranties typically have an annual premium that ranges from $300 to $600, with an additional service fee or deductible of $50 to $125 per service call.
7. Who provides the home warranty?
The home warranty can be provided by either the buyer or the seller. In some cases, sellers may offer a home warranty as an incentive to attract buyers. In other situations, buyers may choose to purchase a home warranty for peace of mind and financial protection.
Conclusion
Understanding the ins and outs of residential home warranties is essential for homeowners. By knowing what these warranties cover and do not cover, the differences between a home warranty and homeowners insurance, and the costs involved, homeowners can make informed decisions about whether a home warranty is right for their situation. Ultimately, home warranties can provide valuable protection and peace of mind for homeowners navigating the complexities of homeownership.
Top 5 National Home Warranty Companies:
Fidelity National Home Warranty
- Website: https://www.homewarranty.com/
- Phone number: 1-800-862-6837
- Known for: Fidelity National Home Warranty is recognized for its comprehensive coverage options and dedicated customer service, offering a customizable home warranty to fit each homeowner's unique needs.
American Home Shield
- Website: https://www.ahs.com/
- Phone number: 1-888-429-8247
- Known for: American Home Shield is a well-established company with a reputation for offering a wide range of flexible plans, including a customizable "Build Your Own Plan" option, which allows homeowners to select specific systems and appliances they want to cover.
Choice Home Warranty
- Website: https://www.choicehomewarranty.com/
- Phone number: 1-888-531-5403
- Known for: Choice Home Warranty stands out for its affordable pricing, a straightforward claims process, and offering a no-fee transfer of warranty during the sale of a home, making it a popular choice for homebuyers and sellers.
First American Home Warranty
- Website: https://homewarranty.firstam.com/
- Phone number: 1-888-875-0533
- Known for: First American Home Warranty is known for its industry experience and for providing comprehensive coverage, including unique options like the First Class Upgrade, which enhances the standard coverage for a more premium experience.
Select Home Warranty
- Website: https://selecthomewarranty.com/
- Phone number: 1-855-267-3532
- Known for: Select Home Warranty differentiates itself with its competitive pricing, promotional offers such as free roof leak coverage, and a user-friendly online portal that simplifies the claims process for homeowners.
Written by: Texas Roadrunner Realty with ChatGPT
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