Do You Know What A Home Warranty Is?

by Angie M
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A home warranty is a service contract that covers many of the appliances and systems inside your home. These warranty contracts typically last for one year with the option to renew each year. The costs of home warranties can vary, but typically start from a few hundred dollars a year.

Most home warranty companies offer various levels of service contracts, and the prices are proportional to the levels of coverage. For example, a basic plan may have limited coverage and higher out-of-pocket costs if the product needs repair or replacement. On the other hand, a more expensive policy generally has lower out-of-pocket costs and covers more items in the home.

Unlike homeowners insurance, which has a deductible that must be paid before the insurance company begins to pay for the loss, home warranty service contracts typically cover the full cost of the item you are repairing or replacing. . You may only have to pay a fee for the service call.

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The home warranty company works with repair companies such as plumbers, electricians, and HVAC companies. When an appliance needs service, you can schedule a service visit through your home warranty company. You will pay the service provider a fee for the visit but will not be responsible for the cost of the repair or replacement of the appliance.

There are certain aspects of a home warranty that you should consider before entering into a contract. If you are waiting for that old refrigerator to stop working so you can replace it with a new model, keep in mind that the warranty may stipulate that the replacement be for a model equivalent to the original. IF there is a base model refrigerator in the home you purchased, your home warranty company can replace it with a current base model from the same manufacturer.

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You may also find that the warranty company wants to repair an item rather than exchange it, or you may have to use a repair company that you think is not doing its job well.

Before signing a service contract, be sure to carefully read and review the terms of the warranty. Find out which service providers in your area the home warranty company works with. Make sure they are reputable, licensed, and insured. Read the fine print and look for coverage exclusions, additional charges, or extra payments for repair or replacement.

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Best Regards,

Live Home Network Club Team.

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