There are many essential expenses when it comes to your home. Some are there to protect you, and other may be a requirement of buying a home with a mortgage. When it comes to property insurance there is a lot to be said for researching the market and finding a deal that is perfect for your home and location. It’s worth talking to the experts about this, and you must ensure that you are properly covered in all areas of home insurance. It’s vital we assert that what we’re talking about in this article – a Home Warranty – is different to property insurance. Property insurance is a useful package that is designed to provide extra cover and protection against failed appliances and systems in the home, and is often offered as an add-on by the real estate agent. But surely your home is sufficiently covered by your property insurance policy?
In many cases you will find you can claim on your property insurance for certain items that are damaged or broken in the home., What happens, though, when that very expensive heating system breaks down, and you find you are not covered? That’s where a home warranty might give you some peace of mind. Let’s find out more.
What a Home Warranty Covers
The systems and items covered by a home warranty will differ between homes and policies. Put simply, the home warranty is designed to fill in any gaps that your property insurance does not provide cover for. You need to talk to the experts in the home warranty world and let them advise you as to what you need to be covered, but we will say that you should ensure any such policy covers – at the very least – your HVAC system, plumbing and electrical home systems.
These are all expensive to replace and repair, as are your major essential appliances such as your kitchen appliances and any bathroom systems you may have, and electrical goods that you use regularly. The beauty of a home warranty policy is that the homeowner gets to set the boundaries and choose what is and what is not covered. If you have a modern, expensive kitchen you might want a policy to simply cover those appliances. If you have an older home, it’s possible you need extra cover for the internal electrical systems. The choice is yours, and you only pay for what you want.
How It Is Structured
Another advantage of a home warranty policy is that it will usually be provided on an annual basis. At the end of a 12-month period you can simply carry on as you were, change the terms or shop around for a different deal. This means that if you upgrade your systems or invest in new appliances, you can alter your policy to include these as and when you wish. Some policy providers will automatically renew at the end of the period should you not inform them otherwise, so make sure you are aware if this is the case.
It is a fact that most appliances will be covered by a manufacturer warranty, but this is only for a set period. Beyond that, the manufacturer will not be held responsible for failure and you will have to pay up yourself. If, however, you have a home warranty policy that covers that item you are in luck. You can learn more about home warranties and what they are for and see if there is one that is right for you. Many homeowners get great peace of mind from these policies, and you could too.