Typically, basic warranties will cover the repair or replacement of kitchen appliances, washers and dryers, plumbing, HVAC, and electrical systems. A home warranty is not an insure policy, it is a service plan. It typically has a service deductible, which may be charged for each item repaired or replaced. The warranty also may require the homeowner to use the service contractors that are stipulated under the plan. Most warranties are for 12 months and only allow for approved service providers to be used for maintenance calls. Fees typically range from $50 to $100 per service call. Most service plans cost between $300 and $500. To understanding the true value of a home warranty, you should have realistic expectations about the repair or replacement service. A home warranty company will pay for the cost to repair or replace the system or appliance, if it has broken down from normal wear and tear. If the system or appliance failed because it wasn’t maintained, the service plan will likely not cover the repair. Buyers should read the warranty contract carefully to understand coverages, limitations, and exclusions.
Most contracts have limitations stating what items they will cover. Service contracts vary on what items are …Read More