WHAT IS A HOME WARRANTY?

A home warranty is service agreement that covers a myriad of “items” in your personal home, not the home itself. So, it is NOT a “Home-Owner’s Insurance Policy”.

There are many, many different companies that provide these service agreements. There are also many, many different types of plans, from “Basic” to “Full Coverage”. It may cover such things as electrical products, some plumbing issues, and gas appliances that are more or less permanent fixtures in the home.

When you are shopping for a home service agreement, look at several companies and review their products and prices. Basic Service is generally the lowest priced product and other specialty items are added to it in varying degrees for an additional costs.

As a general rule, some home warranties do not cover the following:

• Any home that is larger than the specified square footage (i.e. larger than 5,000 square feet)
• Air conditioning, outside wells or pumps, septic systems, pools, hot tubs, etc., etc.
• Items that suffer a breakdown from normal wear and tear
• Any breakdown or remedy that is not PRE-APPROVED.

Most companies have a “partnership” with recommended venders who are specialists in their field of repair. If the home owner uses anyone other than the pre-approved vender, the company will NOT reimburse you for your breakdown. Keep their customer service telephone number handy so that they can give you a “work order number” and tell you what company they are sending to your home.

SERVICE FEES:
For each breakdown the homeowner is required to pay the vendor for his/her visit to your home to evaluate and/or repair the breakdown. This fee is for good only one breakdown at a time and cannot be combined with other breakdowns. For example: if your washer and your dryer breakdown at the same time, you will have to pay the vender its fee for the washer and its fee for the dryer. They are two different components, so there are two different charges. And, these fees are paid directly to the vender upon his or her arrival.

The repairs themselves are paid for by the warranty company, after a pre-determined deductible is met. Some companies offer a $50.00 deductible, and some offer a higher deductible for, of course, an additional fee. This additional fee is pre-determined prior to purchasing the service agreement.

CAUTION:
Not all systems and appliances are covered by a service agreement. You MUST read the contract to know what is or is not covered.