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By Platinum Team February 21, 2013

Understand Coverage Terms On A Home Warranty

Most consumers that contract a home warranty in Chandler have some familiarity with terms of service contracts and other insurance. This is good because it gives a general idea on these different instruments for risk management. On the other hand, a home warranty differs from all of these other protections in key ways. If you make assumptions that home warranties work exactly the same as other insurances then you may miss out on some benefits, and not understand why others may not be covered. The first thing to understand is that a home warranty in Chandler is different from the car warranty you may have on your vehicle, either from the dealership for from a third party provider. A car warranty only comes into effect if a vehicle part has failed due to unforeseen circumstance, acts of God as it were. It will not cover part that naturally wears out over time. A home warranty does cover parts that wear. In essence, they cover any part repair as long as that part is included in the contract. Many types of home repair and major appliances are generally covered. Another thing to understand is that a home warranty in Chandler will only repair a part that has been broken, not a part that is about to break. Take the example of banging pipes. Noisy pipes are generally an indicator of problems in the water pressure system, but at which component. If a plumber is sent and cannot pinpoint a failing part, then the homeowner may leave the $50 service charge to you. On the other hand, if the pressure problem is due to a regulator that is not set properly, then you will probably have to pay for that call as well. However, if the regulator is defective and needs to be replaced, then the home warranty provider will honor the claim. This is an important point. The provider does not fix noisy pipes (symptoms) only broken parts. This example is important because if the pressure problems persist, a pipe could burst causing extensive damage. Much of this damage could be the responsibility of the warranty provider. In other words, if they had taken preventative measures with the symptoms, they could have avoided having to underwrite a much larger expense. Regardless, they will not do that. Ultimately, the responsibility for taking the risk of the service call lies with the homeowner. A third component of your home warranty in Chandler is how to deal with denying claims due to existing conditions. This could happen if you own a water heater (with an average lifetime of ten years) and purchase your home warranty just after you have owned the heater for ten years, and just before it decides to give up the ghost. Honoring this claim is tricky because it breaks the risk model of the warranty provider. They are insuring for reasonable wear and tear, and expect to receive premiums during the times appliances are wearing out. Denying this claim could well be reasonable. As you work with a home warranty company, you should understand what they are insuring and decide whether their pattern of honoring or denying claims is reasonable. By understanding the coverage terms, you will know exactly what you are contracting. Homeowners that do complete their homework generally find that the coverage for a home warranty in Chandler is worth the money indeed.]]>