Why You Should Insure Your Home Systems and Appliances?

The idea of insuring your home appliances and systems isn’t that far removed from the idea of insuring your health, automobile, or life. By contracting with a reputable home service warranty company to cover vulnerable home systems and appliances, you are ensuring a minimal amount of financial upset to your budget should the worst-case scenario occur. At the same time, you’ll endure minimal personal upset. 

What is a Home Service Warranty?

A home warranty is a legal contract that outlines an agreement between a homeowner and a service company. The service company, in exchange for low, upfront payment, agrees to pay the cost of repairs up to and including the replacement of specific home systems and appliances as outlined within the contract. Home warranty contracts minimize the impact of what might otherwise be a catastrophic hit to the homeowner’s budget and lets them know what they can expect in terms of expenses. Typically, the home service warranty company contracts with a variety local trusted appliance and repair companies.

How It Works

Once a contract is agreed upon and signed, the homeowner then sends either monthly or annual payments as stipulated in the contract. Should the homeowner experience problems with any covered system or appliance, they contact the warranty company that, in turn, sends a technician to see to their concern. The providers agree to come promptly and to professionally repair or replace the item in disrepair.

The homeowner pays the service fee as specified in the contract but is not responsible for the cost of actual repairs or replacement. Occasionally the cost of repair or replacement is greater than the amounts agreed upon contractually. When this occurs, the homeowner is expected to pay the difference.

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What is Covered?

Different home warranty companies offer different contractual options, with the goal of having something for everyone. People in new homes with all new systems and appliances obviously won’t have the same expectations and requirements as those living in older homes with older appliances and systems.

Covered home systems typically include things like the electrical, plumbing, heating and air systems, and the like. Covered home appliances generally include refrigerators, freezers, clothing washers and dryers, and the like. Some systems, such as septic systems, and some appliances, such as whole-house vacuums, might need to be listed separately. The additional coverage will also require an additional payment by the homeowner. 

Final Considerations

Not everyone feels the need to insure their home systems and appliances, but such individuals typically either are not homeowners or else they have bank accounts healthy enough to buy new home components the way most people buy fast food. If the cost of a major home repair would be a significant blow to your wallet, then such insurance is well worthy of your consideration. It is possible that you’ll save money on a future repair. As with any contract, read the fine print carefully and be sure you understand the finer points of what is and isn’t covered. 

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