How does it work?
l If a home system or appliance breaks down or stops working, you call the home warranty company.
l Your home warranty company will call a service provider it has a business arrangement with.
l The service provider will call you to make an appointment.
l 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.
l You will pay a small trade service fee (usually less than $100).
What’s not covered? Check your specific policy, but in general: l Outdoor items such as sprinklers l Faucets l Refrigerators, washers, dryers and garage door openers l Spas and pools, unless specific coverage requested l Permit fees l Haul aways.
What can cause denial of a claim? l Improper maintenance l Code violations l Unusual wear and tear l Improper installation
General coverage includes: l Air conditioning l Dishwashers l Doorbells l Furnace/heating systems l Water heaters l Ductwork l Garbage disposals l Inside plumbing stoppages l Ceiling fans l Electrical systems l Range and oven l Telephone wiring.
My personal opinion is: Home warranty contracts are more often than not, 1 year terms. They will try to repair the problem, as it is in their best economic interests ( and cost you a minimal service charge), to do so, even when the best course of action for you , the homeowner, may be replacement. Instead, they revert to the practice of what is basically referred to as " putting a band aid on it", hopefully until your home warranty period ends. Temporary fixes are seldom if ever, long term fixes.
The only case where I would recommend a Home Warranty Plan would be for a seller, who has long since moved from the property. It can add some value to a property which has been stagnant on the market and is looking to encourage buyers with the idea that they will be " covered" if anything goes wrong.