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Home buyers purchase home warranties to protect vital systems. The warranties are not the same as a homeowner’s insurance policy that provides funds to repair property damage or replaces the entire home if it is destroyed. The home warranties provide discounts and coverage for major repairs and replacement services.
Home warranties are beneficial for decreasing the total cost of repair and replacement services for major installations. They apply to the wiring, plumbing, and HVAC. However, homeowners can get warranties to cover appliances and other major installations inside or outside the home.
Does the Home Warranty Transfer Immediately?
Yes, if the property owner wants to transfer their home warranty to a new property, it will transfer immediately, and they will have complete coverage for the new property. However, the property owner must follow the terms of the warranty and make changes where appropriate. The square footage of the property must be updated in the warranty as it is a factor used when calculating the warranty premiums. Property owners can learn more about home warranties available at 2-10 Home Buyers Warranty right now.
Why A Home Warranty is Helpful in a Real Estate Sale
Home warranties are often transferred to the buyer during real estate sales, and the new owner gets the same protection as the seller. This doesn’t eliminate the home inspection, and the seller must correct any issues discovered during the inspection. However, it will protect vital installations in the property and make it more affordable for the buyer if a system fails after the property sale.
What is the Standard Home Warranty Like?
A standard home warranty applies electrical systems, plumbing, and certain appliances in the property. However, the home warranties offered by different companies can vary. It is best for the property owner to review all the terms of the home warranty and determine what plan is best for them. And it is important to consider an option like sewage treatment plants, which processes your wastewater and sewage independently of the public water mains.
Understanding Coverage Time Limits
Home warranties have coverage time limits, and the property owner must become aware of these limits when filing a claim. For example, the home warranty applies caps on the total amount of coverage that applies to one specific installation or appliance.
A new refrigerator may cost $800 or much more, but the home warranty may have a coverage cap of $500. This means the property owner must pay the remaining $300 (or more) to get the specific refrigerator they want to replace the faulty product. The home warranty will not cover the entire cost of the new appliance.
What Does An Appliance Plan Cover?
An appliance plan covers specific appliances that are installed in the property. Typically, the appliances are major systems or expensive products that generate higher costs for the property owner. They can include garbage disposals, exhaust fans, attic fans, refrigerators, stoves, ranges, ice makers, dishwashers, washers and dryers, trash compactors, and range hoods.
However, the property owner must review what appliances they have when starting the home warranty. They could have a built-in microwave that came with the property or a cooktop range that is installed into the top of a counter. Each of the appliances is added to the home warranty separately. The homeowner doesn’t get all-inclusive coverage for all appliances as a whole. Each appliance must be listed individually.
Home Installations Covered by the Warranty
Property owners purchase home warranties primarily to cover home installations that are vital for everyday use. The warranty provides discounts on repairs and replacement services for the products. These products and installations can include ceiling fans, electrical systems, jetted tubs, HVAC, telephone lines, toilets, water heaters, central vacuums, sump pumps, security systems, intercoms, and doorbells
However, the property owner can add more installations to their home warranty as the products are installed. The property owner must consider the cost of repairs, maintenance, and replacement services when adding the products. The purpose of the home warranty is to get these services at a discount rate rather than incurring the full cost. The plans help property owners get the installations they need without exceeding their budget.
What Do Customized Plans Cover?
With customized home warranties, the property owner could add additional appliances and installations to maximize coverage. Common installations that are added later may include guesthouses, lawn sprinklers, wine refrigerators, faucets, stand-alone freezers, water softeners, septic tanks, and sewer lines. Each of the installations presents a higher cost for the property owner if they fail to operate or become damaged.
Some customized home warranties provide assistance with food lost because of refrigerator or freezer failures. The coverage does not apply to instances in which food was lost because of a power outage caused by storms or the utility company. However, if faulty wiring caused the outage, the homeowner could file a claim through the home warranty.
Understanding Coverage Limits
All home warranties have coverage limits, and the property owner must become aware of the limits when filing a claim. The purpose of the home warranty is not to cover the entire cost of the repairs or replacement services. It is to make these services more accessible and affordable for the homeowner.
Each time that a repair service comes to the property, the homeowner must pay a fee for the services. The coverage limit determines how much the homeowner pays each time. If they have exceeded their coverage limit for the year, the homeowner will face the full cost of the services.
Homeowners choose home warranties according to what installations are the costliest in their home and around it. For example, the electrical wiring system could present a significant expense for a homeowner if it becomes faulty and the home must be rewired. The expense could present the homeowner with hundreds of dollars in expenses.
The home warranty covers a portion of these services and prevents the homeowner from facing the full cost alone. They can get repair services or replace entire systems in the home by filing a claim through the home warranty. However, the property owner must review the terms of the home warranty and know the difference between a home warranty and homeowner’s insurance.