Warranty plans are offered on virtually everything you buy. The most important plan you should consider investing in is a home warranty plan. It can save you thousands with just one service call. Below are some Frequently Asked Questions regarding home warranty plans, including what plans cover, what home warranty company payouts are and how to file a claim.
A home warranty plan is a service contract that serves as a protection plan for the appliances and large household items in your home.
A home warranty plans offers a homeowner the reassurance that your covered items will be repaired as soon as possible for no more than the cost of the deductible you chose when you purchased the plan. For example, if your range suddenly stops working, the home warranty company sends out a licensed contractor to repair or replace the range after you file your claim. All you pay is the deductible, whether the range needs repair or it needs to be replaced.
Yes, your home insurance does cover your home, and usually its contents, but in a different way. Home insurance covers you against natural disasters such as earthquakes, fires, floods, etc. It does not cover maintenance when items need to be repaired or replaced.
Most home warranty plans have several options of coverage. Basic plans cover appliances in the home, regardless of age and condition, including refrigerators, ranges, ovens, dishwashers, washing machines, dryers, built in microwave ovens and garage doors. Added plans can also cover systems in your home such as air conditioning, heating, electrical, plumbing and more. Full service plans include all of the above and, in addition, also cover exterior items such as built in barbecues, pools, pool equipment and spas.
Basic plans start at approximately $300 and can go up to $500-600, depending on the deductible amount you choose and the amount of optional coverage you add.
There is a deductible with each claim filed on a home warranty plan. The amount of the deductible varies from $50 – $150. The lower the deductible selected, the higher the cost of the entire plan will be (since it will cost you less each time you make a service call).
Home warranty payouts depend on each individual claim. The contractor will be sent to your home to look at the item within several hours to days after the claim is filed. The contractor and his company will then determine whether the item needs repair or needs to be replaced. The payout is then given, either in the form of a check or by replacing or repairing the item for you.