Probably the last things a new homeowner wants to worry about is their new appliances or systems failing and needing to be replaced or repaired. Homeowners insurance only covers the structure of the house and your personal property, not your appliances and things like plumbing and air conditioning. But those systems can be costly to repair and replace.
A new home protection plan can protect your bank account in case of breakdowns. It works just like a home warranty plan in that it helps cover the cost of repairs and replacements regardless of the age, make, or model of the broken equipment.
In many cases when you purchase a home, the seller will purchase a pre-owned home warranty for you. Sellers usually use this as a selling point, but they also do it to avoid getting calls several months later from the new home buyer complaining about broken appliances. However, if you are purchasing a new home, you can still purchase a new home warranty to protect yourself. They are typically sold in yearly contracts and can be renewed after each year.
With a protection plan, getting help if your appliance breaks is a simple process. First, you call your protection plan provider and explain your situation. If the item is covered under your plan, the provider will contact a local service provider to come to your home to assess the situation. The local service provider or the protection plan provider will work with you to setup an appointment time that works for you. Once the local service provider arrives at your home, you are responsible for paying a service call fee which varies depending on the particular plan you have. The local service provider will then assess whether or not the malfunction is due to regular use. If it is, then the repair or replacement will be made and you won’t have to pay anything. However, if the malfunction is due to improper use or installation, then the plan may not cover the repair.
Sometimes the repair or replacement requires upgrades to the system to become compliant with new regulations. If this is the case, then the upgrades must be done and only some plans will pay for the upgrades. If your plan does not cover upgrades, then you will be responsible for paying the additional costs.