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Homeowners are required by their lender to purchase homeowner’s insurance to protect the property against fires, natural disasters, flooding, and criminal acts. However, the insurance doesn’t cover the installations inside or around the property fully. A home warranty may present a better way to protect their installations and give the property owner a chance to replace or repair the items at an affordable rate.
It Isn’t the Same as an Insurance Policy
Home warranties are not the same as homeowner’s insurance policies. The homeowner’s insurance policy provides funds to pay for repairs or to replace the home. It has limited coverage for items inside the home unless the homeowner adds a rider to the policy.
A home warranty provides protection for installations in the home, such as appliances, electronics, and HVAC systems. The property owner reviews the warranties to determine what they want to be included in their home warranties. They can use individual warranties for specific systems, or they can use a comprehensive home warranty that covers several installations at once. The property owner can get more from 2-10 HBW right now.
They are Customizable to the Owner’s Needs
The property owners can customize their warranty according to their needs. They review their installations and determine what will require replacement or repairs soon. When buying a new home, the buyer has an initial warranty through the builder. If they get the home warranty when they purchase the home, they have protection for all systems they include in the warranty. If they are purchasing an existing home that is at least ten years old, they must assess all systems and determine when they were installed.
The installation date for these systems determines the longevity of each system. For example, the HVAC system will need to be replaced after about 15 years. If the property is 10 years old, the property owner has about five years before they need to replace the units.
The Homeowner Can Add Coverage
When the property owners install new systems, they can add these new systems to the home warranty. Property owners can increase their protection and cover installations such as swimming pools, saunas, and spas. Protection under a home warranty helps cover the cost of repairs and replacements.
Discounts On Vital Repairs
The home warranty provides the homeowner with discounts on their repairs and replacement services. The property owner can review the terms of their warranty to determine how much of a discount they receive. Home warranties also provide help with getting energy-efficient installations.
The Homeowner Know How Much They’ll Spend
The terms of the home warranty define the deductible the property owner must pay before coverage starts. The monthly payments are listed on the home warranty, and the total number of payments is explained, too. The details of their warranty also present the average cost of certain repairs. The property owner reviews the information from the home warranty company to determine how much they will spend overall by getting the protection.
Homeowners assess different types of protection for their home and installations inside or outside the property. A homeowner’s insurance policy will not provide individual protection for all installations in the home. In fact, it gives the owner protection for the home itself and limits coverage for items inside the property. However, a home warranty provides more coverage for the installations and provides discounts on repairs and replacement services.