If you are a homeowner, or you’re shopping for a house, you may have heard the term “home warranty.” You may have heard that “home warranties help you save money!” or “the best home warranty is one that covers an air conditioner.” But what if you don’t know what a home warranty is? That can be confusing. If you don’t know what a home warranty is, don’t feel bad. Many people are confused about home warranties, what they cover and how they work. That’s where we come in! Landmark Home Warranty has created this helpful article and infographic to ensure that you understand what a home warranty is, and how it works. Here is our What is a Home Warranty? Infographic: (If you click that link, or the infographic itself, you can see a larger version.)
First, let’s clear up what a home warranty isn’t. The biggest mistake that most people make when they’re asked about a home warranty, is confusing it with home insurance. Home insurance and home warranties are not the same thing. Home insurance covers damage to your home from natural disasters like floods and fires or theft. So what does a home warranty do?
The words “home warranty” don’t actually explain quite what a home warranty is, which is probably one of the reasons it’s a confusing topic for homeowners. I mean … who needs a warranty for their home? It’s not like it’s going to break down and you can take it back to the manufacturers for a new one, right? In actuality, a home warranty isn’t exactly what it sounds like. A home warranty doesn’t cover the entire structural foundation of a home, but the appliances and systems (like plumbing, electrical, heating and cooling) that make up your home. So I guess we should have called it a home-appliances-and-home-systems-like-plumbing-electrical-heating-and-cooling-that-make-up-your-home warranty, except that’s really long, so we just shortened it to home warranty.
Another thing that confuses homeowners is when they can, and should, buy a home warranty for their house. A home warranty can be put on any home at any time. Homeowners can purchase a home warranty for a home they are just now moving into, or have lived in for 30 years. Home warranties range between $300-$600 dollars a year, depending on coverage. Once the home warranty is purchased for the home, there are a few steps that make up the home warranty process.
If the home is not involved in a real estate transaction and has been owned for over 30 days, homeowners have to wait for 30 days before coverage begins. This is not the case for real estate transactions. If a home warranty is included in the sale of a home, coverage begins the day of closing. Homeowners who are selling their homes can get free listing coverage as well, which is helpful for selling homes.
Once the coverage begins, the home warranty process begins when something in a home has failed. A homeowner will call the home warranty company and see if the appliance or home system that is having problems is covered with their home warranty plan. Then, if the problem is covered under their home warranty contract, the home warranty company will send out a trusted and bonded contractor.
Landmark Home Warranty will have a contractor schedule an appointment within four business hours. if there aren't contractors in your area or there is a delay, the best home warranty company (Landmark) will authorize you to get your own contractor!
The contractor will look at the problem, call the home warranty company and get authorization to make the repair or replacement. The home warranty company has to authorize the repair, to make sure that the repair or replacement is indeed covered in the contract. The homeowner will pay a flat rate fee for all parts and labor, which is around $60. This means, homeowners get their air conditioners, furnaces, ovens, dishwashers etc. at $60 if they failed from normal wear and tear.
Obviously, there are some stipulations with this deal. The homeowners have to maintain their appliances and home systems (so that means no bats, hammers or bombs on your appliances and home systems.) If the homeowner's appliances haven't been maintained as per the manufacturers suggestions, the home warranty company may not cover the item. Landmark Home Warranty tries to educate our homeowners on what they need to be doing for maintenance, so they can get the most out of their home warranties.
Once the repair is made, the work is under warranty for another 30 days! That way, if there was something wrong with the repair made, or the problem was bigger than initially thought, the homeowner doesn’t have to pay another $60.
So why is a home warranty beneficial? They save homeowners a lot of money, and they help homes sell faster and for more money. (http://go-scic.com/new-study-home-warranties-increase-home-sale-prices-reduce-length-on-the-market-for-owners/ )
If a home warranty is put on a home with older home systems and appliances, they can save homeowners thousands. Everything in your home has a lifespan. For example, an AC unit has a 15 year life expectancy. If you purchased a home warranty and your ac unit went out within that year, you’d only be paying around $450 to get it replaced, versus the $4,000 to $6,000 it would cost without a home warranty.
Home warranties can really give a homeowner peace of mind, and help them to save money. If you want more information about home warranties, you can go to Landmark Home Warranty’s page www.LandmarkHW.com. You can learn more about the home warranty process, the home warranty plans, and read home warranty reviews.