What Is Covered With A Home Warranty

A home warranty in Arizona is not exactly a warranty but a home service contract. It is meant to cover major home repairs and appliance repairs, in order to lower the risk to the homeowners. For an annual fee, the risk management company or home builder who offers the home warranty covers the cost of the repairs. Generally, there is a low deductible for each repair and the associated service call. The deductible is often close to the average cost a service company would charge to drive out to the premises. One of the best benefits of the coverage is that repairs for normal wear and tear are included. To those unfamiliar with service warranties, such as those offered with automobiles, this is a tremendous boon. It prevents surprises that the insured often gets when the provider decides to classify a failure as normal wear and tear and deny coverage. These sorts of issues are hard to resolve and often cause a lot of frustration to the insured. Standard home warranty contracts do not suffer this drawback.

Even though companies that offer a home warranty in Arizona are governed by strict requirements at both the federal and state level, coverage varies widely from company to company. A little bit of research is a good idea before committing to a contract. On the other hand, the home warranty is often exercised more often than the insurance policy for a car. A car policy holder may go many years before having an incident that would call for the insurance company to jump in. At that point, the policy owner finds out whether his or her insurance provider is a good company or not. If it turns out that the company is not on the level, then it is frustrating to have been making payments for years and not being truly covered in the way that the policy owner thought.

A home warranty in Arizona is exercised roughly once a year on the average. The policy owner generally gets to prove the efficacy of his policy at least once during each term. This gives the opportunity to make sure the home warranty is good. It also gives the warranty provider an extra incentive to keep your business.

Many types of insurance policies involve a lot of premiums without a lot of payoff. A home warranty in Arizona is not this way. Over a period of 5 to 10 years, a homeowner can track the premiums against the payouts and find a definite and immediate benefit. Often, the payouts will be almost as much as the total of the premiums. This proves an effective policy.

If a homeowner has done the analysis for a home warranty in Arizona, he may come to the conclusion that he could have accomplished the same thing by putting aside the home warranty payment into a savings account and handle the problems themselves. However, the reality is that most homeowners do not do that. In addition, that strategy would not cover the situation when a lot of problems hit all at once and the savings account is not big enough to handle the expenses. This is the essence of risk management, that the surprises of failed appliances that do not come along at convenient times are handled by a company that is willing to take that risk. The peace of mind that comes with the reduced risk is well worth the expense of a home warranty.