Do you need a Home Warranty? Knowing the difference between a Home Warranty and your Home Insurance can save you the headache of knowing what to do in the event you need either one. Home warranties can often be inexpensive, but may also not be as effective.
What is a Home Warranty?
A Home Warranty plan is often used for basic items of your home such as appliances like your washer, dryer, refrigerator, and other components of your home like your air conditioning system, minor plumbing items, electrical and other components. A home warranty is not to be confused with your Home Insurance, your home insurance is designed towards paying for damages or loss that are caused by events such as major leaks, fire, damage from weather, etc.
What types of Home Warranty Plans are there?
Home Warranty companies provide you with options that best fits you and your home, there are different plans available from very basic coverage to more extensive coverage options. Typically, when you buy an existing home a common “buyer” request in your real estate transaction is a Home Warranty plan. Similarly, if you purchased a new construction home, the builder typically offers their home warranty plan that covers you extensively for 1 year for things such as drain stoppages, appliances, structural repairs, plumbing, heating, air conditioning, electrical and even cosmetic repairs such as paint, drywall, etc.
Home warranty plans can average in cost anywhere from $350-$600 annually.
In what scenarios is a Home Warranty effective?
Refrigerator stops working
Heating or Air Conditioning Maintenance / Service
Plumbing Repairs such as leaky faucets
Drain Stoppages
Door Bell
Garage Door opener
Microwave
Dishwasher
Stove
It is important that you read the fine print of your home warranty plans and exactly what it covers so that you can be familiar with what it provides and when you can use their coverage. For example, there are many Home Warranty companies that will cover your refrigerator as an appliance but not the ice maker, or it will cover the water heater components but not the water heater itself. In the event an appliance, or your heating & air conditioning system is not repairable there are certain home warranty companies that will provide a dollar amount of coverage towards the replacement of the unit.
What should I look out for?
Home warranty companies are there to take care of their customers. However, there are many reported incidents in the Better Business Bureau of issues with services provided which sometimes there may be miscommunication between the user and the provider. The most common is that there typically is a dispatch fee every time you require a service from your Home Warranty company, this is to get the contractor out to your home to assist you with your request, the dispatch fee at times can range anywhere from $25-$75 in most cases. We also always recommend that you ask who they are sending to your home and that you do your best to check for reviews of the service company coming out to ensure you will be getting quality service. At times there have been incidents where a Home Warranty company is overwhelmed with service requests that their top service providers are unavailable, therefore they will call anyone to provide you with service and not focus so much on the quality of service, but not on meeting your service appointment.
As always, we at Diamond Property Inspections provide you with a thorough, detailed, and extensive report of the health of your home. It is important to hire an experienced Home Inspector to take the necessary time to be able to provide you a peace of mind and plan ahead for items that you may need to take care of in the future as well as be educated about your home. Give us a call to schedule your Home Inspection in Riverside County or its surrounding cities.
