Home warranty
Encyclopedia
A Home warranty is a service contract
that covers the repair and replacement costs of home appliance
s. The warranty generally covers equipment and appliances such as dishwasher
s, plumbing
systems, electrical systems etc. that fail due to normal wear and tear. Coverage varies significantly across warranty companies. Home warranty contracts do not cover all home repairs.
s, dishwashers, and ovens. Many companies charge additional coverage for appliances such as clothes washers and clothes dryer
s, which are generally not covered. Buyers should read the home warranty contract carefully to understand coverages, limitations, and exclusions.
In some states, such as New Jersey for example, builders of new homes are required to provide a home warranty to those purchasing homes. Though the terminology is identical these home warranty plans should not be confused with the ones offered to existing home owners or through real estate transactions involving the purchase of existing homes. The coverage may be very different from other similarly named agreements.
Home warranty is only one term used to describe contracts between home owners and companies that cover some of the costs associated with specific repairs and replacements of household objects such as appliances and major systems. Related industries often use such terminology as residential service contracts and appliance warranty plans. Just as is the case with home warranty in states such as Florida, residential service contracts are regulated in some states such as Texas. It is of value for consumers to understand their state's regulations for companies that offer to provide maintenance or repair services and/or coverage for related costs since some companies may be operating without proper licensing. Consumers may sometimes avoid falling prey to unlicensed companies by consulting their state's policies and other information regarding home warranty and similar services. In some cases current lists of licensed companies are available for consumers to check on the applicable state government agencies' websites.
In the United States, annual premiums generally range from $300 to $450 USD. There will be additional service trade fee (deductible) of 50 to 100 dollars per service incident. Most companies do not let homeowners combine two repairs with one service trade fee. For example, if your electrical switch needs a repair and kitchen sink is clogged, you will have to pay the service trade fee twice.
Homeowners are encouraged to read their Home Warranty Contracts so they may learn and understand how the home warranty works.
Home warranty companies deny systematic denial and claim that customers need to pay close attention to the contract. Warranty contracts specify that pre-existing conditions and problems arising due to lack of proper care and maintenance are not covered.
Buyers are encouraged to check the provider ratings of the companies selling the product.
Home-Warranty-Review
The Home Warranty Review
Texas Home Warranty Review
Home Warranty Provider Ratings
New Home Warranty From Checkmate
Reviews Home Warranty From Pennsylvania
Articles on Home Warranty Topics
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
that covers the repair and replacement costs of home appliance
Home appliance
Home appliances are electrical/mechanical machines which accomplish some household functions, such as cooking or cleaning. Home appliances can be classified into:*Major appliances, or White goods*Small appliances, or Brown goods...
s. The warranty generally covers equipment and appliances such as dishwasher
Dishwasher
A dishwasher is a mechanical device for cleaning dishes and eating utensils. Dishwashers can be found in restaurants and private homes.Unlike manual dishwashing, which relies largely on physical scrubbing to remove soiling, the mechanical dishwasher cleans by spraying hot water, typically between ...
s, plumbing
Plumbing
Plumbing is the system of pipes and drains installed in a building for the distribution of potable drinking water and the removal of waterborne wastes, and the skilled trade of working with pipes, tubing and plumbing fixtures in such systems. A plumber is someone who installs or repairs piping...
systems, electrical systems etc. that fail due to normal wear and tear. Coverage varies significantly across warranty companies. Home warranty contracts do not cover all home repairs.
Coverage
Basic coverage includes plumbing, electrical, heating systems and major appliances such as refrigeratorRefrigerator
A refrigerator is a common household appliance that consists of a thermally insulated compartment and a heat pump that transfers heat from the inside of the fridge to its external environment so that the inside of the fridge is cooled to a temperature below the ambient temperature of the room...
s, dishwashers, and ovens. Many companies charge additional coverage for appliances such as clothes washers and clothes dryer
Clothes dryer
A clothes dryer or tumble dryer is a household appliance that is used to remove moisture from a load of clothing and other textiles, generally shortly after they are cleaned in a washing machine....
s, which are generally not covered. Buyers should read the home warranty contract carefully to understand coverages, limitations, and exclusions.
In some states, such as New Jersey for example, builders of new homes are required to provide a home warranty to those purchasing homes. Though the terminology is identical these home warranty plans should not be confused with the ones offered to existing home owners or through real estate transactions involving the purchase of existing homes. The coverage may be very different from other similarly named agreements.
Home warranty is only one term used to describe contracts between home owners and companies that cover some of the costs associated with specific repairs and replacements of household objects such as appliances and major systems. Related industries often use such terminology as residential service contracts and appliance warranty plans. Just as is the case with home warranty in states such as Florida, residential service contracts are regulated in some states such as Texas. It is of value for consumers to understand their state's regulations for companies that offer to provide maintenance or repair services and/or coverage for related costs since some companies may be operating without proper licensing. Consumers may sometimes avoid falling prey to unlicensed companies by consulting their state's policies and other information regarding home warranty and similar services. In some cases current lists of licensed companies are available for consumers to check on the applicable state government agencies' websites.
In the United States, annual premiums generally range from $300 to $450 USD. There will be additional service trade fee (deductible) of 50 to 100 dollars per service incident. Most companies do not let homeowners combine two repairs with one service trade fee. For example, if your electrical switch needs a repair and kitchen sink is clogged, you will have to pay the service trade fee twice.
Homeowners are encouraged to read their Home Warranty Contracts so they may learn and understand how the home warranty works.
Controversy
Some common complaints that home warranty clients have:- Fraudulent home warranties companies take money from consumers and then refuse to honor the agreements and vanish completely only to reopen under another name.
- Warranty companies deny the claim citing homeowner's maintenance negligence
- Warranty companies deny the claim because of a "pre-existing problem"
- Warranty companies always repair the appliance even when it is in such bad shape as to be replaced
Home warranty companies deny systematic denial and claim that customers need to pay close attention to the contract. Warranty contracts specify that pre-existing conditions and problems arising due to lack of proper care and maintenance are not covered.
Buyers are encouraged to check the provider ratings of the companies selling the product.
Resources
Home Warranty Provider RatingsHome-Warranty-Review
The Home Warranty Review
Texas Home Warranty Review
Home Warranty Provider Ratings
New Home Warranty From Checkmate
Reviews Home Warranty From Pennsylvania
Articles on Home Warranty Topics