By Platinum Team October 11, 2012

The Top 5 Questions About Coverage With Home Warranties

If you are a home owner or are thinking about buying a home, you might be considering purchasing a home warranty plan. When shopping around for home warranty coverage, you will probably have a lot of questions. Following are five questions that are commonly asked about coverage with home warranties.

What exactly is a home warranty plan? A home warranty is a plan that provides warranty coverage to many of your home appliances and systems. In the case that one of your appliances or home systems breaks down due to normal wear and tear, a home warranty plan will cover the repair or replacement of the appliance or system. Having a home warranty plan can ensure that you are not left with a huge repair or replacement bill.

What types of things does a home warranty plan cover? Home warranty coverage applies to many appliances and home systems. Some common appliances that are covered are refrigerators, ovens, dishwashers, and clothes washers and dryers. Some common home systems that are covered are electrical, heating, air conditioning, plumbing, and water heaters. Home warranty companies have standard plans that you can purchase. If there is an appliance or system that you do not see on the plan that you would like to have covered, most companies will let you add the appliance or the system to a standard plan for an extra fee. Some companies will allow you to customize your plan to fit your particular needs.

How much does a home warranty plan cost? The cost of home warranty plans varies depending on the type of home warranty coverage you want. Many companies will give you on-line quotes. You can also call the company to inquire into the cost. Representatives of each company will be able to help you determine the plan that fits your needs and the cost of that plan.

What is the difference between homeowner’s insurance and a home warranty plan? Homeowner’s insurance covers the structures and furnishings of a home in the event that they are damaged due to a natural disaster. Home warranties will cover the cost of repairing or replacing a home appliance or system due to normal wear and tear.

Will it matter if my appliances and home systems are old? No. All that matters is that your appliances and systems are in good working order. For example, if you have an old furnace, it can be covered under your home warranty plan as long as it is working properly. After your home warranty coverage begins, home warranty companies require that you take care of and maintain any appliances and home systems that are protected by your plan in order to make sure the warranty is valid.

Shopping for a home warranty plan can seem overwhelming. If you are a first-time home buyer it can seem particularly daunting. But, with a little bit of research and some help from the representatives from home warranty companies, you will have all the information you need to purchase a plan that meets your needs. Now that you have the answers to the five common questions regarding home warranty coverage, you are well on your way to choosing the plan that is right for you.