How a Home Warranty Complements Your Homeowners Insurance

Many home buyers think about a Home Warranty as an addition with their homeowners insurance policy. What a car warranty is to your new car, a house warranty is to your new home. A home warranty guarantees that the house and its particular systems will function properly (the way they're supposed to) for a certain period of energy or use. Since a house is a much bigger investment when in comparison to a car, many house buyers much like the idea of a guarantee, along with the peace of mind that comes with it.

Home warranties cost from 0 to ,000 per year depending for the coverage you want. The average is about 0. These warranties typically cover the appliances and systems which come together with your house, including:

Window-Mounted Air Conditioner

Electrical system Heating and cooling system and ductwork, but excluding in-window air conditioners as well as heat registers Plumbing system and toilets, and sump pump, but excluding septic systems, private well pumps, and fixtures such as and shower heads and faucetsWater heater, dishwasher, refrigerator, telephone wiring, but excluding ice maker Stove and exhaust fans

How a Home Warranty Complements Your Homeowners Insurance

You can purchase additional coverage for:

Well pumps Septic tank pumps Faucets and shower headsWindow-mounted air conditioners Heating registers and grillsSmoke detectors refrigerator ice makersSwimming pools Garage door openersroofs (limited coverage) Washers and dryers

If something breaks down or goes wrong using a central system or an appliance, you contact the warranty company, which gives a list of approved repairmen. You pay a determined service fee (usually to 0), along with the company pays the remaining of the bill. If an appliance can not be fixed, the warranty buys you a fresh one, and pays for your installation.

Although a home warranty may sound as being a good idea, in practice, the small print during these contracts exclude a whole lot - hard-to-access areas, preexisting conditions, poor installation, anything beyond normal wear and tear, and substandard maintenance. With a lot of exclusions, it's often difficult to acquire a claim approved. If you do not get your furnace serviced once a year, for example, your claim might not be approved if this konks out. Examine anything carefully prior to signing it, and search for loopholes.

For instance, many warranty companies require homeowners to update electrical and mechanical systems to current building codes before they'll cover those systems. Some states monitor the businesses that sell home warranties, others don't. If you're considering purchasing a policy, check whether a state regulates these lenders and check for complaints against specific companies. Or, you are able to go on the world wide web and check for complaints at consumer-affairs.com (http://www.consumeraffairs.com) or even a website like ripoff report (http://www.ripoffreport.com).

How a Home Warranty Complements Your Homeowners Insurance