How to Buy a Residential Warranty

A residential warranty or home warranty is a renewable home service plan that covers the repair or replacement of most home appliances. It helps the homeowners to be prepared for appliances breakdown and cut the cost at the same time. There are many companies in the US providing a plethora of american residential warranty services. However, before choosing a particular home warranty plan, one should be aware of multiple aspects.

• What is a Residential Warranty?

A residential warranty is a contract that covers the cost of maintaining household systems or appliances. It complements a home insurance plan by protecting things that insurance doesn’t. Most residential warranties follow an annual renewal cycle, while a few plans can follow a monthly renewal cycle. The cost of a residential warranty can vary depending upon the company as well as the plan one chooses. In general, the cost may vary between $350 and $600 a year.

• Items that a Residential Warranty Covers:

Depending upon the service plans, a residential warranty can include the maintenance of HVAC, water heaters, plumbing, electrical and more appliances. Some residential warranties also cover A/C units, washers, dryers, refrigerators, and stoves. Here are the items that a residential warranty covers.

1. Home Systems

1.  Electrical Systems: wiring, fuse boxes, and outlets.
2. Plumbing: water heater, pipes, well, and septic pump.

       iii.  Heating and Cooling: heater, A/C units, and heat pumps.

2. Appliances

1.   Laundry Appliances: Washing machine and clothes dryer.
2.   Kitchen Appliances: refrigerator, oven, range, and microwave.

3. Additional Coverage

Some residential warranty services also offer additional coverage. These items are:

1.   Roof Leak Coverage: leaks, dry rot, and damage from normal wear and          tear.
2.   Electronics: computers, TVs, gaming systems.

       iii.  Pool & Hot Tub: components of the heating, pumping, and filtration systems.

1.     Guest House: add-on houses, carriage houses.
2.     Well Pump: components used as a source of water to the home.
3.     Septic Pump: mainline stoppages and sewage ejector pump.

• How to Buy a Residential Warranty:

Home systems or appliances may require repairs when they are aging. Now, sudden repairs and replacements can blow the budget, whereas choosing a residential warranty can reduce the risk by providing full or partial coverage. However, the process of buying american residential warranty services is not as simple as it seems. The three steps mentioned below can help a buyer to choose a suitable plan.

1. To buy a residential warranty, one needs to determine the coverage needs at first. There might be some appliances at home that are nearing the end of their useful life. Or, there might be some appliances that have ended the manufacturer warranty period. One needs to note the items down and look for relevant plans.
2. The second step includes contacting well-known residential warranty companies for quotes and coverage. One can ask for recommendations from friends or search online for the most trusted companies in the US. Also, realtors can be helpful in this process as most realtors partner with home warranty companies.
3. The third step includes finalizing the plan. By looking at the different coverage a company offers, choosing a plan is not difficult. However, once a person has shortlisted all the companies, reading the contracts is a must. One of the biggest mistakes can be overlooking the terms and conditions while buying a residential warranty.

• Who Needs a Residential Warranty?

A resident who wants to secure the longevity of home appliances and systems needs a residential warranty. However, to be eligible to buy a residential warranty, one needs to be a property manager or homeowner. The landlords who have rented their apartments are also eligible for purchasing a home warranty on any house at any time.

• Residential Warranty vs. Homeowners Insurance:

A residential warranty and home insurance are not the same. A residential warranty is a contract that usually covers home appliances and systems. On the other hand, home insurance is a contract that usually covers a property from theft, fire, and natural disasters like storms or floods. Though both the services are essential, residential warranty services are more often required.

• Real Estate Home Warranty:

To help buyers, sellers and real estate professionals, real estate home warranty services have been introduced by many residential warranty companies in America. This one-year agreement can cover the repair or replacement of many major home systems that any basic residential warranty does. The only difference is that it is available to sellers via their real estate brokers at the time of real estate transactions. Anyone buying a real estate property can ask the realtor about this service.

• Four Main Points to Look For in a Residential Warranty Company:

While looking for american residential warranty services, one should check the facts mentioned below.

1. Which items are covered: All home warranty services have different service agreements. These agreements state which systems and appliances under which conditions will be covered. Here, one needs to determine which service will be beneficial at a fair price.
2. The limits and exclusions: Every residential warranty company has specific limits and exclusions on the coverage. Often, these are hard to find or understand. However, it’s crucial to know these limits and exclusions before signing the agreement.
3. The cost of different plans: Generally, residential warranty cost depends upon the amount of coverage provided. Choosing a premium plan can save a homeowner from paying lump sum amounts when a system or appliance suddenly breaks down.
4. Licensed and insured technicians: One of the biggest benefits of choosing residential warranty services is access to licensed and insured independent service contractors. Hence, one should always ask the company if it provides licensed and insured contractors.

• Conclusion:

A residential warranty is like a piece of mind for the homeowners. It covers the repair and replacement costs of most home appliances like a water heater, oven, plumbing units, etc. No matter how old a home appliance gets, a residential warranty can keep them running with coverage options so that all the basic household needs are fulfilled. However, there are many terms and conditions of these services that a buyer should be aware of. Anyone looking for american residential warranty services should read the terms and check the above facts before signing the agreement.