All About The Home Warranty
A home warranty is a contract for service that protects the homeowner from bearing the entire cost of good repairs. Generally, the agreement covers the repair or replacement of major kitchen appliances and home system components, including water heaters, washers and dryers, heating and air-conditioning parts, plumbing, and electrical. All home warranties are different. When I sell my own home in Minnesota, I research home warranty companies and their associated coverage.
Home Warranties Provide Peace of Mind
Imagine you just purchased a home. After your down payment, closing costs, and moving expenses, you are short of cash. A couple of weeks later, the washing machine stops working. Since you have a Home Warranty, the repair or replacement is usually covered. So, in addition to being a service contract, a home warranty is peace of mind. It can be especially beneficial to a first-time homebuyer in MN.
Home Warranties are Different than Homeowners Insurance
What a Home Warranty is not is insurance. Homeowners insurance will cover your home in the case of damage by fire or weather conditions. Still, it's not going to pay for a new dishwasher if yours gives out. You might say that a home warranty takes over where your insurance leaves off. It covers normal wear and tear and breakdowns.
How a Home Warranty Works
Home Warranty companies have service technicians and subcontractors they work with who are licensed, vetted, and screened. When your air conditioner breaks down, you give them a call, and they send someone out to look at the problem, provided that the appliance is covered in the warranty. You pay a service charge spelled out in the contract, and the home warranty company pays the remainder of the bill...