When buying a home warranty, it is essential to understand the included terms and conditions. These terms include limitations, waiting periods, service fees, and exclusions. These can make or break a deal, especially if you need to know what you’re getting into.
Limitations of Home Warranty Coverage
Home warranties like Arizona home warranty coverage limits help keep costs reasonable for the average homeowner. They also help home warranty companies better manage claims. These limits define how much it will cost to repair or replace eligible systems or appliances. These limits are different for every home warranty company. Knowing them is essential before signing a contract.
The annual coverage limit of a home warranty plan determines how much the warranty company is willing to pay for covered items. These limits can vary dramatically from company to company. For example, one plan might only cover up to $500 per covered item. Another might have a cap of $5,000 per covered item. Also, some contracts have separate caps for different things. Finally, home warranty plans may not cover items that are uncovered during a home inspection.
Limitations of home warranty coverage cover appliances and systems essential to a home’s operation. Some home warranty providers offer add-ons to their plans for extra coverage. These add-ons may include swimming pool equipment, septic tank pumping, and additional electronic devices. Some companies also provide additional coverage for food spoilage.
Waiting Period
When you purchase a home warranty, there is a waiting period before the policy takes effect. This is in place to protect both the warranty company and its customers. The waiting period is generally 30 days at maximum, although some companies may require a longer wait. Regardless of the time a home warranty policy requires, it is essential to be aware of any potential time constraints before submitting a claim.
Once the waiting period is up, you can open a claim with a home warranty company. A qualified contractor will diagnose the problem and determine if it is covered under the policy. A qualified contractor will also determine if the problem results from a pre-existing condition. If the problem is deemed a result of a pre-existing condition, the waiting period will not apply.
A home warranty policy can be extended by choosing an appropriate renewal date. In most cases, a waiting period does not apply to a renewed contract. However, a waiting period might apply to a new policy or an expanded plan.
Service Fees
A home warranty can help you avoid the hassle of repairing your home. However, service fees can be high. In addition to the cost of the home warranty, service fees can also affect the monthly or annual cost of the plan. At the low end, service fees may be around $50, while at the high end, they may range from $125 to $150.
Home warranty service fees are similar to insurance co-pays. They apply each time a professional repair visits your home. The average service call fee is $60, but this can vary from provider to provider. The service fee should be clearly stated in the contract. It should also specify whether the fee is per visit or per event.
While home warranties typically cover your home’s major systems, you can add coverage for appliances, pools, and spas at an extra cost. The cost of additional coverages can be as low as $25 per year or over $300 for specific items such as pools and spas. Before purchasing a home warranty, understand its coverage details and how each plan is structured.
Exclusions From Coverage
Home warranty coverage is typically limited to specific items. Some exclusions are less significant than the cost of a service call, but some things are completely out of the warranty’s scope. These exclusions may surprise you. Knowing what those exclusions are is essential before purchasing a home warranty plan.
For instance, most home warranties do not cover damage caused by acts of civil disobedience or acts of sabotage. Even though these events rarely occur, they can significantly reduce the value of the warranty. In addition, many home warranty plans do not cover accessories not connected to the structure, like swimming pools and landscaping. Furthermore, they do not cover damage caused by unauthorized repairs or acts of violence.
While some home warranty plans include appliance repairs, others exclude structural problems. Refrigerators, for instance, are rarely covered, although some contracts allow for window replacements. In addition, many of them do not protect heating or plumbing systems. While this might not seem like a big deal, heating and plumbing systems costs can run into thousands of dollars. Therefore, it is essential to understand all exclusions before signing a home warranty agreement.
