{"id":922,"date":"2018-11-17T14:49:15","date_gmt":"2018-11-17T19:49:15","guid":{"rendered":"https:\/\/www.yourhome1source.com\/blog\/?p=922"},"modified":"2018-11-20T18:21:19","modified_gmt":"2018-11-20T23:21:19","slug":"home-warranty-may-be-owners-best-friend","status":"publish","type":"post","link":"https:\/\/www.yourhome1source.com\/blog\/home-warranty-may-be-owners-best-friend\/","title":{"rendered":"Home Warranty May Be Owner\u2019s Best Friend"},"content":{"rendered":"

We usually buy insurance for those just-in-case times \u2013 for auto accidents, for medical emergencies or in case our home is damaged by fire, wind or flood.<\/p>\n

But what about a home warranty<\/a>? Is such coverage necessary, or just another home expense? We already have many expenses like the mortgage, real-estate taxes and assortment of costs required to keep our home running smoothly \u2013 so is a warranty a justified expense?<\/p>\n

We recently caught up with Dmitriy Krupin, Senior Vice President of New York-based, The Home Service Club<\/a>, which offers home warranties in 48 states. Mr. Krupin shared the following perspective. "Look at it this way, a home warranty will protect most of a home\u2019s major appliances and systems, from the refrigerator to the HVAC, electrical and plumbing, and maybe some of the extras such as a pool or hot tub. A manufacturer\u2019s warranty may cover one item like a dishwasher for a short period, for that single item. A home warranty will cover many appliances and multiple home components like the HVAC unit."<\/p>\n

When you compare home insurance \u2013 which may offset costs related to damage caused by storms, accidents or natural disasters \u2013 to a home warranty, the home warranty may be helpful for the appliance and other home system repairs that occur more frequently, Krupin says. In other words, home insurance is great for a significant, rare occurrence like a fire, while a home warranty covers multiple and inevitable failures of items that can break your savings account, like appliance repairs. Most home insurance policies cover accidents but will not cover failures due to normal wear and tear. This is where a home warranty comes in.<\/p>\n

Some years, if lucky, you may experience home-ownership Nirvana and have nothing happen that needs attention\u2014and dollars. Other times, a few or many parts may conk out, and you wish you had set aside that emergency nest egg for such unexpected issues. And this is when those who purchased home warranties thank their lucky stars.<\/p>\n

How does a home warranty<\/a> work? When a covered item breaks, you contact the warranty provider \u2013 not a repair person. You file a claim and the warranty provider will send out their approved service provider and you pay a deductible, which may average $75.00 to $80.00, towards the covered repair and the warranty covers the balance. That seems like a reasonable fee and solution to get your furnace or air conditioning system back up and running again!<\/p>\n

So, is the preventative cost of a warranty worthwhile? The big challenge for home owners is two-fold. First, many resale home owners say "yes" since many parts may break down because of wear and tear. Others, probably owners of newly built homes, think the extra cost isn\u2019t worthwhile as everything is new and under the manufacturer\u2019s original warranty. That may be the reasonable conclusion. The product warranty, however, is limited and is usually for a defined period of time \u2013 such as one year. A home warranty, on the other hand, is renewable for as many years as the home is standing. It is also important to keep in mind that many parts covered under a home warranty, such as plumbing pipes or electrical wiring, for example, do not come with sufficient warranties from their manufacturers.<\/p>\n

We also found out that there are two types of home warranties, as follows:<\/p>\n