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Things you should know about home warranty

Warranty in layman terms can be explained as a guarantee which is issued to any person on purchase of products or for services rendered, which promises to repair or reduce the cost of repairs. Normally certain repairs and services for any product which are covered under warranty are free of cost, or may be carried out at reduced prices.

Things you should know about home warranty

The same concept is applicable for home owners who can avail such warranties. Normally brand new homes will include warranties on new appliances and systems, terms which are stipulated in the contract. Now this should not be confused with homeowner’s insurance which is a different thing altogether. Insurance by default is taken for the protection of your house which does not cover the appliances inside. Warranties are taken up separately for the appliances, electrical systems in the house amongst many others.

Home warranties will have different coverage as compared to your insurance. You will have to check with the company who is providing you the warranty, which are the appliances and various systems that are covered under warranty. There are a number of plans to choose from, and an even bigger number of companies to choose plans from, so you will have to be very careful and must do a thorough research.

Basic plans will cover most generic appliances and electrical systems, but there are a number of terms and conditions that apply when you go to make a claim on that warranty of yours. But more importantly you should know what is exclusively not covered.

The big question that comes to our minds now is whether taking up a home warranty plan is worth the cost? For example, if an appliance is not working properly or needs servicing, you will have to contact and hire a technician from outside if you don’t have warranty. The fees charged for services and the visit of course by the technician will be substantial since replacement parts might be hard to find for that particular appliance or for a number of reasons. However, warranties take this into account and ensure that the basic services and repairs included in the plan you have opted subsidize the costs involved or even eliminate them for that matter.

You can compare warranty plans online, or can talk to an expert from the company to know more about the range of plans and find out which is more suited for your purpose.

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