You’ve purchased a new home and now you are getting settled in. However, you know you need to protect this investment and wonder how best to do so. Many homeowners today purchase a home warranty to ensure they won’t have expensive repair bills on top of their new mortgage. For example, they don’t want to learn they have to replace the furnace months after moving into the new home. If you don’t want this worry, a home warranty may be right for you.
The Average Furnace Lifespan
If you properly maintain a furnace, it shouldn’t need to be replaced for 15 or 20 years. Replacing the air filter and inspecting the pilot light will help this appliance last longer. In addition, you should have the unit inspected at least once a year by a professional. They can catch problems you may miss before they become expensive repairs. However, certain things do affect the lifespan of a furnace. These factors include the local climate, system usage patterns, and extreme temperatures.
An efficient furnace saves you money during normal operations and when it comes to repairs. You can rest easy knowing it is operating properly and your home and family aren’t at risk. With a home warranty plan for your furnace, you will have peace of mind knowing you can have repairs completed if something goes wrong and these repairs won’t decimate your budget.Â
How a Home Warranty Can Help
Home warranties cover major appliances and systems in the home, although the coverage varies by provider. When one of these systems or appliances stops working, the warranty provider handles the repairs. If the unit or system cannot be repaired, the warranty provider pays for a replacement up to the amount listed in the policy. Homeowners know they won’t be facing a high repair bill when they purchase a home warranty.
Most warranty plans allow you to pay by the month, with the average plan costing around $900 a month. However, prices range from $200 to $1700 a year for most plans with the premium being tied directly to what is covered. The plan typically covers the cost of the repair or replacement after you pay the policy deductible.Â
Home warranties are not the same as homeowner’s insurance. Insurance policies pay for catastrophic damage. Home warranties cover repairs or the replacement of household appliances and systems due to normal wear and tear.
Will the Home Warranty Cover Your Furnace?
Furnaces are covered under most home warranties, but you need to read the fine print to learn exactly what the company will cover when it comes to this appliance and what is excluded. Most plans will cover the furnace and all related parts. However, you need to read every line of the document and ask questions to make certain you know what the company will pay for and what will be your responsibility.
Filing a Warranty Claim
Filing a warranty claim usually isn’t difficult. Contact the warranty company and they will send someone out to handle the repairs or replacement. You will pay a deductible and possibly a service fee. The warranty company covers all other expenses up to the policy limit.Â
However, if you have an extended warranty or manufacturer’s warranty on the unit, that warranty is used before the home warranty. In addition, if you fail to maintain the appliance as recommended by the manufacturer or the system is damaged in a catastrophic event, the home warranty won’t pay. For this reason, you need to understand what you are purchasing, what is covered, and what is excluded before making this purchase. Doing so will prevent unpleasant surprises down the road.Â
