You may be wondering what does a home warranty cover? Before you decide to purchase an Arizona home warranty, you’ll want to understand the exclusions and limitations of this type of coverage. In addition, you’ll want to consider how much a home warranty costs and how much the policy will cover.
Exclusions
While homeowner’s insurance covers damage from windstorms and water escape, it doesn’t cover consequential damages. Exclusions from home warranty coverage often result from a homeowner’s duty to mitigate damage. Here’s a list of things your home warranty won’t cover. Keep these in mind when negotiating your coverage.
Exclusions from home warranty coverage can include the sink pop-up mechanism and certain repair causes. Additionally, some policies have limits on how much they will pay. You may also have to pay a service call fee if your warranty covers the issue. Make sure you understand these limitations so you don’t pay more than you should for repairs. Also, don’t forget to look for other exclusions.
Home warranties will not cover any pre-existing conditions. Some companies will require a waiting period before coverage kicks in, so read the fine print of your warranty contract carefully. Generally, pre-existing conditions include appliances or systems that failed before the warranty protection began. Some companies will perform a simple mechanical test to determine whether or not a condition qualifies as pre-existing. If you can’t get coverage on your appliances, you should opt for a home warranty plan that covers them.
Limitations
While home warranties are beneficial for protecting your most important home systems and appliances, there are limitations to their coverage. A home warranty only covers certain parts and systems, and you may have to pay extra if you want to get non-standard items covered. Make sure to understand the limitations of your home warranty before signing a contract. Home warranties also don’t replace every device or part that breaks down, so read your service contract carefully.
Depending on what’s covered, your home warranty may not cover specific causes of repairs. You should also be aware of the maximum payout per repair or appliance. In addition, some home warranties do not cover everything that could go wrong with your home, so make sure to read the fine print carefully. While home warranties are a good investment, you should consider them carefully if you plan to make a major renovation or replacement in the near future.
Consider self-insurance for unforeseen repairs and other costs. Many home warranty plans don’t cover things you don’t need, so you may want to consider self-insurance instead. In addition, home warranties often cover only mechanical components, so you might not need coverage for non-mechanical items like your HVAC system or the structure of your home. It is also possible that you will never need to use your warranty, so consider saving up for these things instead. If you can, consider self-insurance if you can’t afford a home warranty plan.
Cost of a home warranty
What are the costs of a home warranty? The cost of a home warranty depends on the type of plan you choose and how much you’re willing to pay for coverage. In general, plans range from $75 to $125 per call—however, the higher your premium, the lower your deductible. So choose the cheapest option when comparing the costs of home warranty policies. A home warranty is a good investment for your home and should last for years.
Premiums: Home warranty premiums are paid annually, but you can break them into monthly or quarterly payments. Premiums are usually based on leveled packages. Starter packages cover basic home systems, while higher-level packages cover more appliances. Some plans are more expensive than others, so you’ll need to budget for the cost of these extras when comparing home warranty premiums. But don’t worry, there are ways to reduce the cost of a home warranty.
Coverage limits and conditions: The cost of a home warranty policy will vary depending on which company you choose. The base plan limits the coverage of most major systems, while add-on plans cover specific appliances. Home warranty companies often charge more for service visits and claim settlements, so it’s important to read the fine print before choosing a plan. While a home warranty does not replace the structural elements of your home, it can be beneficial for your wallet if you encounter a breakage.
