(And why our home warranty provider, America’s Preferred Home Warranty, is the best!)
The first thing you need to know about home warranties is that they are neither insurance nor warranties. They are, in reality, service contracts.
They were created to provide financial protection for homeowners faced with the failure of major mechanical systems, such as the home’s heating and air conditioning. Home warranties provide, most of all, peace of mind.
What does a home warranty cover?
Home warranty companies offer a variety of plans and typically the more you pay, the more your plan covers. Most of the basic warranties – first tier and second tier plans – cover the following:
- HVAC System – heating, ventilation and air conditioning system components such as heat pumps and ductwork.
- Plumbing – all of the home’s interior plumbing system components such as pipes, drains, and faucets. Some home warranty plans cover outdoor plumbing as well, such as the sprinkler system. Some companies offer a separate policy for hot tubs and pools.
- Electrical system – wiring, doorbells, electrical panels and other electrical system components are covered under either Tier 1 or Tier 2 plans.
- Major appliances – the basic plan typically covers the range, refrigerator, garbage disposer, washer, dryer and water heater.
Ah, those nasty “exclusions.” Just like your health and homeowners insurance even a home warranty contains them. Not everything in the home is covered under a home warranty. Like inclusions, exclusions vary, depending on company. The following are some common home warranty exclusions:
- Normal wear and tear
- Problems that arise from deferred maintenance
- Insect or vermin damage
- Damage caused by the homeowner
- Structural problems (leaky roof, cracks in walls)
- Acts of God (earthquake, flood, etc.)
Optional coverage, at additional cost, is usually offered for:
- Well pump
- Septic system (if you have one, this is highly recommended)
- Central vacuum system
How much does a home warranty cost?
America’s Preferred Home Warranty’s plans start at $479 for a condo/townhome, $499 for a single family home, $600 for 3 year coverage for new construction and $950 for a duplex. You can add on additional coverages or pay for multiple year plans.
Here’s how APHW plan works
In the event of a mechanical failure or appliance problem, you will place a call to the repair person of your choosing. While they are out on their initial diagnosis appointment, you will call America’s Preferred Home Warranty. They will ask to speak to the contractor for their diagnosis. They will then get you back on the phone to tell you what your coverage will be.
They work with your chosen licensed contractor to get repairs done quickly and efficiently through their easy claims process. They offer several fast payment options, including immediate payment over the phone directly to your contractor for covered repairs.
Are home warranties worth their cost?
YES! Because of the peace of mind they offer homeowners, they are absolutely worth the purchase. Most of our agents have APHW coverages on their own homes and have used them several times.
Especially during the first year you are in your new home, when you may be strapped for cash, a home warranty may be well worth the price of it. When a major system in the home malfunctions, the price to repair or replace can devastate your savings. A home warranty offers both peace of mind and financial security.
To receive an America’s Home Warranty brochure via email, please send a request to: [email protected]. If you find a plan that is right for your home, we can set it up free of charge for you.