A home warranty can really save the day. Especially here on the Emerald Coast where temperatures can exceed 100degrees with unbearable humidity. Being able to have an AC replaced is certainly a must have in this environment. Home warranties may be offered as part of the buyer’s incentive package when you are buying a home.
What a home warranty is not: It’s not a blanket insurance policy against anything ever going wrong in your home. It’s not a permanent warranty. It does have exclusions. Before you purchase or accept a warranty, it’s good to know what the warranty is, what it covers, what it doesn’t and how it works.
How does it work? Most home warranties are very similar. You’ll want to read your warranty thoroughly and mark anything you don’t understand to have explained to you.
But in general:
If a home system or appliance breaks down or stops working, you call the home warranty company.
Your home warranty company will call a service provider it has a business arrangement with.
The service provider will call you to make an appointment.
The service provider will fix the problem. If an appliance or system is malfunctioning and can’t be repaired, depending on your contract coverage, your home warranty company will pay to replace and install the appliance.
You will pay a small trade service fee (usually less than $100).
What If the service provider doesn’t fix something to your satisfaction or says that the problem is your fault and isn’t covered by your warranty? Call your real estate agent. I will seek resolution for you.
What’s not covered? Check your specific policy, but in general:
Outdoor items such as sprinklers
Refrigerators, washers, dryers and garage door openers
Spas and pools, unless specific coverage requested
What can cause denial of a claim?
Unusual wear and tear
General coverage includes
Inside plumbing stoppages
Range and oven
Your responsibility is to read thoroughly and understand your warranty before you agree to the terms. Be sure to clear up anything you don’t understand before you sign anything.