Why do I need a home warranty?
Your home is most likely one of your biggest investments. Unexpected repair or replacement costs can easily strain your budget if you do not have a home warranty. Plus, finding an approved and insured contractor to solve your problem can be stressful and inconvenient. A home warranty cannot prevent systems or appliances from breaking down, but it can help make covered repairs or replacement easier and less costly.

How does a home warranty work?
When a covered item breaks down, request service by calling to speak with a customer service representative. Once repair or replacement is complete, and as long as we have your proper email address on file, we will send you a follow-up customer satisfaction survey regarding the service preformed.

Why a Home Warranty?
Your home is likely one of your largest investments – don’t trust the covered repairs or replacements to just anyone. Make the right choice in case things go wrong.

Is everything in my home covered by a Home Warranty?
No. While not everything is covered, coverage for many of the most frequently occurring breakdowns of home system components and appliances. Please review sample contract for specific covered items, terms and conditions, limitations and exclusions.

How do I know my service contractor is qualified?
Our comprehensive network of approved and insured contractors are consistently monitored and graded on their performance through our customer satisfaction survey program.

Is the Home Warranty renewable?
Yes, warranty holders may renew their coverage (at the option of the Home Warranty provider).

We purchased our current home a little over a year ago and one of the perks to entice potential buyers was an included third party home warranty purchased by the seller. I have to admit, when buying an older home, it sure does ease your concerns about the home falling apart right after you close.

A home warranty plan is simply insurance you can buy against sudden and accidental breakdown. Typical coverage is for the mechanical systems of your home such as electrical, plumbing, furnace, and hot water heater. Our plan included a few extras such as our appliances, central air, pool pump and filter. Our plan would cover the cost of repair or replacement minus a seventy five dollar fee which is paid at the time of repair. Structural repairs such as our roof were not covered. Companies and plans vary so do your homework if you’re considering buying a plan for your home.

Home protection plans are not replacements for home owner’s insurance, it’s just an extra piece of mind. Don’t skip having the home you are planning to buy inspected because it includes such a policy. Always hire a licensed professional inspector to look the place over.

So, are they worth the money? In my personal example, even if I had purchased the plan with my own money I would have came out far ahead financially. In fact, we renewed our policy at my expense without hesitation. Shorty after we moved in we lost electricity in two rooms. Our bathtub in the second bathroom started leaking behind the wall. We purchased the home in the winter and in late spring when we opened the pool we discovered the sand filtration system was shot. Those three items combined cost me $225 ($75 x 3 occurrences). Our home warranty plan paid over $3000 for the repairs and a new pool filter.

As you can see, we saved in that situation. I renewed the plan for another year because the alternative would be to use a credit card when something major breaks and that’s not a plan at all. Ideally you would have an emergency fund building interest somewhere but until you have that established a home warranty might just be the answer. We even added the washer and dryer to this year’s plan.

Tip: Even though we knew we would renew, we made them work at selling it. We ended up with a free upgrade with a lowered initial repair fee of $40 rather than the $75.

The bottom line is how much risk you’re willing to take. You can save $250 to $500 a year by skipping the home warranty if you’re a gambler. It is a large expense, especially if you believe the risks are low due to the condition of your home. How do I see it? If my 20 year old furnace or my 50 gallon hot water heater goes out, I’m going to be very happy to write that $40 check to have it repaired or replaced. If nothing at all happens I’m still ahead and I didn’t have to worry about it for a year. If my home were newer and everything was under five years old, I’d probably take the $500 and get that emergency fund started.

What is a ‘Home Warranty?’ A home warranty is like an insurance policy. In fact, in some states the Insurance Commission may even regulate them. I know in Texas, the Real Estate Commission regulates these companies. Basically as a homeowner you pay a company a few hundred dollars a year to cover the major appliances and components of your home. If something should go wrong, you call them up and they send a technician out to size up the situation and tell you if you’re covered or not.

Is this too good to be true? Problems for some consumers usually arise when they have a claim. They may have paid their dues each and every year and believed everything in their home was covered. Then one day in August the A/C goes out and they call the Home Warranty Company who sends a tech out to look at the A/C. “Yep” he says “Your A/C equipment is shot, you’re going need a new one.” “Good thing I have this warranty” you think. You may soon find out that your warranty will not cover a new A/C because you failed to have it “serviced” each year or because the service tech says the reason it went out was because of a “Pre-existing” condition.

I’ve seen claims denied for very questionable reasons. Stop and think about it, if they can deny a claim, then that’s money in their pocket. Someplace in that fine print I keep telling you to read there is a whole bunch of “we won’t warranty it ‘if’s’.” The Technician who comes to your home may be the one who’ll decide whether or not the work will be covered by the warranty. In some instances, these third party contractors who are hired by the warranty companies do not make as much on repairs and replacements on a claim as if you just called them up out of the phonebook. It pays to get several opinions before making a decision.

Here are a few reasons I’ve seen Home Warranty Companies deny claims · Lack of regular maintenance · Pre-Existing conditions · Questionable ‘Code’ issues · Components not installed per the manufacturers installation instructions

The best way to protect yourself if you plan on purchasing one of these policies is to call the Company and ask them which service provider they use in your area. Then call that service provider and schedule an inspection with them to come out and look at the systems and components in your home to ensure the Home Warranty Policy will cover it. Get it in writing if they says everything will be covered.

You also want to make sure what the Home Warranty will cover and what it doesn’t. I’ve never seen a policy with blanket coverage so don’t assume it will ‘cover everything in the home’ like some real estate agents tell you. Read the fine print!

What are my options if my warranty company denies my claim?

I’m betting that most states regulate these companies some how. Check with your states Attorney Generals Office. They should have all the information you need. You may even be able to file a complaint with the AG’s office of your state if you’ve had a denial of a claim in which you feel is legitimate.

Good Luck and read the fine print on those contracts!

As fall approaches, it’s time to start thinking about a top-to-bottom inspection to check for any damage and to prepare for the upcoming cold winter months.

Bite-sized projects

When it comes to staying one step ahead of maintenance headaches, we have to admit, our preference would be to bury our heads in the sand and hope that someone else takes care of any problems. Fortunately, we learned a trick that helps us overcome that mental block. If we break a big task down into smaller tasks, and then put one task on our to-do list each week, we will surprise ourselves by tackling something we didn’t think was possible.

For example, Sarah recently moved into a new house and there were about 50 little maintenance issues, such as a knob that had fallen off the dresser drawer and a leaky faucet that was keeping her up at night, which she knew she had to deal with. So she broke it down. Week one, she created a checklist. Week two, she went to the hardware store for all the supplies she’d need to fix the broken things. Week three, she fixed the broken knob. And so on. When you’re feeling overwhelmed, break the project down into smaller bite-sized steps, and you’ll be off to the races in no time.

Getting help

If you keep putting off maintenance tasks because you’re too busy, reach out to others who can help you. I am happy to admit that I am out of my depth in many areas of home maintenance. Why? Because that means my job as a homeowner is really about finding the right people to help me for the right price.

Here are three essential chores to tackle this week to get your home ready for the transition to fall.

No. 1. Change esssential batteries

Don’t wait until your smoke and carbon-monoxide detectors chirp at you to be changed, since that usually happens when you’re busy doing something else (like sleeping). Buy a few extra batteries when you’re at the grocery store this week and swap out the old batteries for new ones in all of your detectors.

No. 2. Change the filters

As much as half of the energy used in your home goes to heating and cooling. A dirty filter will slow down air flow and make the system work harder to keep you warm or cool — thus wasting energy. A clean filter will also prevent dust and dirt from building up in the system, leading to expensive maintenance and/or early system failure. If it’s been more than three months, buy some new filters and put them in your heating and cooling systems this week.

No. 3. Sweep the chimney

Chimneys need periodic examination and thorough cleaning to maintain efficiency and to reduce the chance of a chimney fire. Book an appointment with a chimney sweep to have yours professionally cleaned and checked for loose or missing mortar.

By: Sarah Welch and Alicia Rockmore
Detroit News; September 20, 2008

While fall is often a time when homeowners focus on some indoor home improvements, one of the most important home improvements may be putting on a new roof (see if this is covered under your home warranty ). Sure, a new roof doesn’t have the “wow” factor that a new kitchen or finished basement has, but it is vital in eliminating the potential for serious water damage in your attic. If you have an older home, or even one built in the last 20 years, there is a good chance you need a new roof.

Of course, one of the most common questions I get from callers is, “How do I know if I need a new roof?” If you have any obvious leaks in your attic or ceiling, that’s a sure sign that you need a new roof. Even if you don’t have a problem with leaks, it doesn’t mean your roof is fine. To determine if your roof is in need of repair or replacing, take a pair of binoculars and inspect your roof shingles. If they are cracked, discolored or curling, you should call a full-service roofing contractor to get it inspected.

Once you determine that you need a new roof, you should learn all you can about roofing and roofing products. For example, in the past, many homeowners that had one layer of shingles on their roof would elect to have the roof “re-covered.” That’s where the contractor would put a new layer of shingles over the old ones. While that is certainly cheaper than a complete “tear-off” of the old shingles, it is not the best solution to your roofing needs.

ORA Warranty is one company that doesn’t recommend re-covering. According to experts, if you do a re-cover, it means you are assuming the wood underneath and the original shingles are in good shape. However, you can’t really know that unless you tear off the old shingles and inspect the wood. If that wood is rotting or in need of repair, your roof could still leak even after a re-cover.

Home warranty and construction experts also say that re-covering a roof doesn’t enable a roofer to address other important areas of the roof’s integrity, such as flashing walls and areas around chimneys or stack-vent pipes.

When it comes to roofs, you get what you pay for. Therefore, saving some money by doing a re-cover could unfortunately lead to paying your deductible on an insurance claim when your ceilings are damaged by water leaks.

Cost of shingles

You also get what you pay for in terms of roofing products.

While most contractors may be similar in pricing for installation of a new roof, the bigger cost differences are in the type of shingle you choose. There are two categories where the cost for a shingle can vary dramatically. One is the style of the shingle, while the other is the shingle warranty.

In the past, most shingles were the flat, three-tab variety, and only came in a few basic colors, such as black, gray or brown. Fortunately, today’s homeowners can choose from a variety of architecturally designed shingles in a several colors that complement the look and color scheme of your home.

So, today’s shingles can actually bring better curb appeal.

Of course, these architectural shingles are more expensive than the flat, three-tab version, but there are various price points for you to choose from to help you stay within your budget.
Warranty

The other important price factor when considering roofing shingles is the warranty. Obviously, a shingle that is warranted for 50 years is going to cost more than one warranted for 25 years. But it also will be better then the 25-year warranted shingle, so it will last longer.

When it comes to warranties, you need to know what the warranty covers before you can decide whether it’s worth the investment. The best warranty is one that has a “No Dollar Limit.” Which means that no matter how bad the problem or the cost, the shingle manufacturer will take care of the problem.

If you are planning to get a new roof, it’s important to familiarize yourself with the common terms used in the roofing industry to help you make an educated decision when choosing a contractor and roofing materials. See the accompanying story for some of the most common terms used in the roofing business.

Once you have settled on the type of roof shingles you want, make sure you have enough roof and soffit ventilation to improve the shingle’s life. With the proper amount of insulation on your attic floor, your attic temperature is closer to the outdoor air temperature, which eliminates the potential to “cook” the underside of the shingles. Most roofing contractors will recommend and install the proper ventilation system for your roof.

You’re away on vacation, enjoying the peace and quiet. Unknown to you, the compressor motor on your refrigerator at home suddenly burns out. Within hours everything in your refrigerator begins spoiling. Everything in your freezer melts. The refrigerator starts leaking a gooey mess all over the floor. You come home two weeks later to a horrible stench that can only be described as…indescribable. At least you have insurance that will pay for a new refrigerator…or do you?

If an appliance breaks down – no matter how expensive that appliance is to replace – your homeowner’s policy will not pay for its replacement. For that you need Home Warranty Insurance.

You may wish to purchase a Home Warranty policy for your own peace of mind. For many people it is simply comforting to know that no matter what happens, from a heater going bad to an air conditioner breaking down, everything in the house is always covered and will be replaced at a very nominal cost if anything should go wrong.

There’s another reason many people buy a Home Warranty policy and that has to do with selling a home. A potential buyer of a home is often swayed when vacillating between two or more home choices and will purchase a home that has a Home Warranty policy on all of its major appliances. In this way the new homeowner feels more secure.

How does a Home Warranty policy work? You decide which appliances and home systems you want covered and you pay a yearly fee, much as you would with any insurance policy. If an appliance or system that’s covered by the Home Protection Warranty should fail, there is a service charge to have a repair person come to your home and make a repair or replacement of the broken system. The service charge varies depending on choices you make when you purchase your policy, but a charge in the $50 to $60 range is common.

How is the best and least expensive way for you to buy a Home Warranty policy? That’s simple. I’ve done a great deal of research and there’s only one way you should buy a policy and that’s online.

Online brokers have no overhead to speak of and so they don’t need to make a huge commission on each sale. This means you save approximately 30% instantly just by buying your policy online.

Also, the decisions you need to make when buying a Home Warranty policy are simple and straightforward; you don’t need a live agent sitting across from you and talking you into buying a lot more policy than you need or can afford. When you buy online YOU are in complete control for once – and wouldn’t that be nice?

As I mentioned, I’ve done a great deal of research into online insurance and I’ve discovered where you can get the best deal – but I don’t want you to take my word for anything. I want you to get online yourself and discover for yourself just how much money you can save on your Home Warranty policy simply by purchasing it online.

Since your home is most likely one of your biggest investments, unexpected repair or replacement costs can easily strain your budget if you do not have a warranty.  Additionally, finding an approved and insured contractor to solve your problem can be stressful and inconvenient, especially at that crucial moment when a system breaks down.  While a home warranty cannot prevent systems or appliances from breaking down, it can help make covered repairs or replacement easier and less costly.

While not everything is covered, coverage for many of the most frequently occurring breakdowns of home system components and appliances is actually included.  Applicants should review their contracts or sample contracts carefully, to confirm covered items, terms and conditions, limitations and exclusions.  In some cases “supplemental” home warranty coverage may also be necessary, for items such as swimming pools and their filter / pump systems, garage door openers, secondary appliances (i.e. a deep freezer that is not the primary appliance), etc.

Whenever you apply for a mortgage loan, most lenders require that you have proof of insurance on your home before they will allow the closing to take place.  Very often, what homeowners feel is covered by their home owners insurance policy, is not included in their policy.  A home warranty can be very useful in this respect.  Carefully reviewing your homeowners insurance policy and comparing it to a home warranty, and then adjusting each to be complimentary to the other, can give a homeowner REAL peace of mind knowing that they are in fact fully covered for any event that may come their way.

If you have a seller’s home warranty (a type of home warranty provided by the seller to help promote the sale of the property), once the sale closes, any problems that may occur in the home will be covered.  Any expensive repair the home may require, will be taken care of by the home warranty.  A homeowners insurance policy will not likely cover many kinds of problems which will occur from time to time, nor will it cover wear and tear on home systems.

Unless you’re carpenter or contractor by trade, a home warranty is a great investment.  In most cases you will recover your modest investment in the home warranty plan via replacement of home systems and appliances, which will all eventually fail and need to be repaired or replaced.  The best advice is to check around and compare home warranty coverage and rates.  Both quarterly and monthly payment plans for are available, and the internet is a great resource to begin your home warranty search.

You’re away on vacation, enjoying the peace and quiet. Unknown to you, the compressor motor on your refrigerator at home suddenly burns out. Within hours everything in your refrigerator begins spoiling. Everything in your freezer melts. The refrigerator starts leaking a gooey mess all over the floor. You come home two weeks later to a horrible stench that can only be described as…indescribable. At least you have insurance that will pay for a new refrigerator…or do you?

If an appliance breaks down – no matter how expensive that appliance is to replace – your homeowner’s policy will not pay for its replacement. For that you need Home Warranty Insurance.

You may wish to purchase a Home Warranty policy for your own peace of mind. For many people it is simply comforting to know that no matter what happens, from a heater going bad to an air conditioner breaking down, everything in the house is always covered and will be replaced at a very nominal cost if anything should go wrong.

There’s another reason many people buy a Home Warranty policy and that has to do with selling a home. A potential buyer of a home is often swayed when vacillating between two or more home choices and will purchase a home that has a Home Warranty policy on all of its major appliances. In this way the new homeowner feels more secure.

How does a Home Warranty policy work?
You decide which appliances and home systems you want covered and you pay a yearly fee, much as you would with any insurance policy. If an appliance or system that’s covered by the Home Protection Warranty should fail, there is a service charge to have a repair person come to your home and make a repair or replacement of the broken system. The service charge varies depending on choices you make when you purchase your policy, but a charge in the $50 to $60 range is common.

How is the best and least expensive way for you to buy a Home Warranty policy?
That’s simple. I’ve done a great deal of research and there’s only one way you should buy a policy and that’s online.

Online brokers have no overhead to speak of and so they don’t need to make a huge commission on each sale. This means you save approximately 30% instantly just by buying your policy online.

Also, the decisions you need to make when buying a Home Warranty policy are simple and straightforward; you don’t need a live agent sitting across from you and talking you into buying a lot more policy than you need or can afford. When you buy online YOU are in complete control for once.

Get online and discover for yourself just how much money you can save on your Home Warranty policy simply by purchasing it online.

A home warranty is a policy that is used to pay for common, everyday repairs to things that can go wrong in your home. For example, a home warranty will cover the cost of repairing a central cooling system or a roof that develops a leak. A home warranty is not an insurance policy , rather a way to budget for the expenses of normal repairs.

When you purchase a home warranty, you will pay an annual premium. This may be due in one lump sum, or broken down into quarterly or monthly payments. This is the money that establishes your warranty, and guarantees coverage. When something breaks in your home, and you need to file a claim, you will be responsible for a service charge. The service charge is a predetermined amount, usually between 30 and 100 dollars. This covers the cost of repairs. These are the only two expenses involved in home repairs when you have a home warranty.

When something goes wrong in your home, you file a claim for service. You call the phone number of the home warranty company, and explain the situation. They will then send someone out to complete the repairs. The home warranty company does not have repairmen, but has established relationships with various repair people in the area that they cover. It is important to ask, before you buy a home warranty, whether the company has repair people in your area.

Why Should I Consider a Home Warranty When I Purchase a New Construction?

No one can argue that moving into a newly constructed home is a wonderful luxury. With the smell of new drywall, the sleek countertops and spotless floors, it is easy to feel like you will never have to do any repairs again. Of course, you know that this is not true, it will not be long before the first problem develops, the heating doesn’t kick on in the fall, or your dishwasher stops getting dishes clean. These problems are more stressful because they are coupled with a mortgage payment.

A home warranty is the perfect solution for a tight budget. Home warranties for new constructions are very affordable, and covering your home now ensures that you can budget effectively for whatever problems develop down the road. If you have a current home warranty, you know that you will never be blindsided by the cost of home repairs.

Is a Home Warranty a Waste of Money When Everything is New?

The traditional home warranty must be taken out when the home is new. Some companies are now writing plans for older homes, but the policies are more expensive and may have limitations or exclusions that make them not the best deal. A home warranty taken out on a new construction, and kept current, is the best way to get your money’s worth. While many things, like new appliances, may go a decade without any trouble, home warranties also cover the problems that crop up occasionally in a new construction, including leaky pipes and minor electrical problems. Some home warranty plans will also cover the cost of maintenance. What a home warranty will not cover is the cost of repairs due to improper installation or excessive wear. This means that whether or not maintenance is covered, it is important to stay current on your maintenance and make sure that all installations are properly installed, to avoid voiding your warranty.

Additional Benefits of Home Warranties

When choosing a home warranty company, shop carefully. To maintain the benefits of a home warranty, you must start the protection when your home is complete, and continue it uninterrupted. While some home warranty companies are beginning to add policies that allow you to pick up a policy at any time, traditional home warranties are coupled with the purchase of a new home.

It is important to purchase a home warranty that is transferable. Very few of us will live in one house for the rest of our lives, with people moving an average of every five years. When it comes time to sell your home, real estate agents have found that the homes that have home warranties sell much faster than the equivalent homes without these warranties. To get this benefit, the home warranty must be transferable. If not, when you move, the home warranty coverage ceases.