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Home Warranty Insurance Plan- Is It Worthy Or Not

The best home warranty plans are not actually warranties but the service contracts, which insure the homeowners against the repair of the major appliances of homes including the plumbing systems, heating and cooling systems, circuit breakers and a range of other things. Home warranty insurance policies are necessary, but this should only be purchased from any company with solid reputation. But in case you don’t find a company with great reputation, then it is better to place the cost into any home repair fund.

Few things about home warranty insurance plans:

It is also important to keep in mind that the home warranty insurance plans never include the comprehensive warranties offered by the home builders on completely brand new homes. In fact, this is all about the existing properties or homes. But when the potential breakdowns that are covered by the home warranties get unpleasant, these are not catastrophic often. The insurance is only meant for the more expensive and bigger repairs. It means, the home warranty insurance plans are meant to cover things that you can’t afford to repair by yourself.

Nevertheless, the home warranty insurance plans have almost become universal in the present market. Therefore, not only these are appealing to the prospective property buyers, but these are also highly appealing to the sellers as these are also covered during the property listing period.

The checkbook of the consumers about the issues found in the home warranty insurance policy:

  1. Coverage offered: In most of the cases, the home warranty insurance policies don’t cover the most expensive types of repairs that a homeowner might face in their homes. Often the less popular home warranty insurance policies don’t offer coverage for covered roofs, skylights, leaky windows, chimney repair and basement moisture issues. Some of the companies also charge extra to offer coverage for ventilation, plumbing and heating and air conditioning issues.
  2. Contractors: In case of home warranty insurance, the homeowners are not free to choose the electricians, plumbers or other contractors, who come to your home for repairing your home appliances or major systems. All you need to do is to call the insurance provider that therefore sends out the next-in-line home warranty service provider with which it has contracts. But although the insurance providers confirm that the contractors perform good work and are pre-screened, the checkbook is not always right.
  3. Cost: As this insurance offers thin coverage, the costs never add up in the favor of the homeowners.