Home Waranty for My Home Major Components
We at Action Heating & Air Conditioning Inc. offer the following information to help you as a home owner have an understanding of why a Home Warranty Program may not be the best option when you are looking at repairs on your home’s major components such as your furnace, air conditioning, plumbing and electrical systems.
If home warranties were perfect, everyone would buy one. But everyone does not have one, why?
One major issue with a home warranty is it will not cover items that have not been properly maintained. What is considered proper maintenance can be a major gray area and it is the source of many disputes between the home warranty company and the homeowner with a home warranty program. In a worst case scenario, warranty companies may use the improper maintenance clause as an excuse to deny a valid claim. In another scenario, the homeowner and the contractors sent by the home warranty company may simply disagree over what constitutes proper maintenance.
Home warranties can have numerous exclusions as well as dollar limits per repair and per year.
Home warranties are not expensive compared to what it would cost you to repair or replace a major component in your home. This is one of the major selling points that the home warranty companies use in trying to convince you to purchase their program. However, there may be many years when nothing at all breaks down or wears out in your home. In these years you receive nothing in exchange for your $300 to $600 priced warranty program. That money could have been put in an emergency fund for making the same repairs and replacements that the home warranty would cover.
Home warranties do eliminate your need to find a contractor when repairs are needed. This however also eliminates your freedom to select a contractor that you may feel would be the best to complete your repair. If you are not satisfied with the contractor they send, you may be forced to use them anyway. Also repairs may be more complicated with a home warranty company being involved versus you dealing directly with the contractor.
If replacement is needed you may have little or no say in the model or brand that the home warranty company decides to use. They are supposed to provide a similar or equivalent quality replacement, but this doesn’t mean for instance with a new toilet that you will receive one in the same color you currently have.
The Bottom Line is that a home warranty is not a perfect solution to the risks a homeowner faces. Before you purchase one, please be sure you read the fine print in the home warranty. Also check the home warranties reputation and ask for references that are have used their programs and services for a number of years.
We at Action Heating & Air Conditioning Inc hope that this information was of value to