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).

Buying a new home warranty is much like buying an extended warranty on your refrigerator or car — there are a lot of questions to be asked.

Many states have different laws regarding home warranties. For example, in California, state law allows you to sue builders for general defects for up to four years after the home is completed. You can also hold the builder liable for latent defects on major components for ten years. Why would you need the warranty if the law says the builder must pay?

We are starting to see many warranty products being offered on existing homes. You should be cautious with these products.

Start by checking with your state’s Department of Insurance. The department regulates the industry. They will be able to tell you whether or not a particular home warranty company is in compliance with the state regulations.

Many advisors suggest that you should waste your money on warranties for resale homes. These warranties include standard coverage for the home’s heating, electrical and plumbing systems. Your kitchen appliances are often part of the standard coverage. You can often add your air conditioner, pool, well pumps, solar components and root coverage for an additional cost.

You will often find that sellers offer the warranties. The warranty is by no means an acceptable substitute for a professional home inspection. If the seller pays for the insurance, then fine. But if you are asked to, you need to think hard about it.

Not only will you spend a couple of hundred of dollars for the plan, you will pay around a $50 deductible every time someone comes out to look at a problem.

Most plans also limit how much they pay to correct problems. You are better protected by having a professional property inspector inspect the home thoroughly and uncover the problems for you. The inspection is a better usage of your money.

But the plans are popular. Eighty percent of existing home sales include a home warranty in California. If you are thinking about taking out a home warranty on your new purchase, you should ask your friends and family for referrals. You are looking for a company with a good track record of happy customers.

Make sure you shop around. Look at price, service fees, coverage and company stability. Make sure you look at all of the costs that you will have to pay and the coverage amounts. Be certain that the coverage is applicable to your home. You don’t want the policy to be voided because your home is too old.

If you want to purchase warranty insurance, then go ahead. Some people do benefit from the coverage. Like all insurance, the company is betting that you won’t ever make a claim. If you don’t, you’ve lost your money.

Homeowners insurance covers personal belongings and the entire house in case fire, theft, or natural disasters such as lightning, a tree falling, heavy snow damaging a roof etc.  A homeowners insurance policy does not cover regular maintenance and replacement costs of appliances and most home systems, which is where home warranty coverage picks up.  A home warranty is a type of wear and tear insurance against equipment and appliances such as heater, A.C. unit, plumbing and electrical systems.

What does homeowners insurance cover?

• Personal property, furniture, clothing, jewelry etc.
• Structure and contents of the home
• In most cases your living expenses if the home is not in a living condition due to natural disasters
• Appliances are covered as well, but only in the event of natural hazard or special circumstances.
• If someone visiting your house gets injured while in your property (such as a slip and fall) and if you are sued, you are covered by homeowners insurance.
• Homeowners insurance protects you from fire, lightning, tree-falls, burglary, storms, etc.

What does a home warranty cover?

• Like homeowners insurance, a home warranty can be adjusted or customized to suit the homeowner.  In most cases, basic coverage includes the repair and replacement of all major appliances such as Heating/Cooling systems, Water Heaters, refrigerators, Dishwashers, Ranges, Ovens, washer/dryers etc.  Plumbing and electrical system are also included in most basic coverage plans.
• Optional coverage varies.  Many companies also cover roof maintenance in the basic coverage, but some companies charge extra.
• Coverage is generally effective 30 days from the date of buying the policy. But be aware that claims can be denied by companies for various reasons, including what they consider “maintenance negligence”.

Normally whenever you apply for a mortgage loan, most lenders require that you have proof of insurance on your home. Often times what you think you are covered for, is not included in your policy, and things like electrical problems, heating and mold infestation are not covered. This can be stressful and these kinds of additional expenses will certainly not be welcome.

If you have a seller’s home warranty, once the deal is closed, any problems that may occur in the home will now be covered. So any expensive repair you may have to do, or pipes you have to fix will be taken care of by the warranty. Your home insurance will not likely cover these kinds of problems that will occur from time to time.

Your seller’s home warranty also covers, whatever the cost is to repair any damage in the new home, once the deal is done. Things like failures in the electricity, plumbing, air conditioning, and heating will be paid for by the home warranty. Be aware though, that unless these failures occurred on their own, the seller’s home warranty will not pay for the repairs. If you commit a code violation, or are found wanting in terms of how you care for the affected system and any maintenance, you cannot be denied coverage.

If you decide to get a home warranty, be extra vigilant in reading and comprehending the stated terms and conditions on the contract agreement. You will be unable to dispute or challenge the policy once you have signed the contract and made payment. The term of a home warranty is usually one year, so you will have coverage for that period of time. So if you should decide to sell your home, you should let the buyer know when the home warranty will need to be renewed, and leave it up to them to decide whether or not they want to extend it.

In the final closing costs of your mortgage, you may also include your seller’s home warranty. You also have the option of buying home warranty and deferring paying until the deal is closed. Just as you would do, to get a number of home insurance quotes, the same applies when seeking a home warranty. Seek as many quotes as you desire and make your decision accordingly.

The first step is to decide if you need home warranty.  You should get a detailed home inspection report on your existing house from a third party inspector.  This report will help you understand the potential and existing problems with your appliances, and will also help you decide if you need home warranty.  If some appliances are aging and need special attention, be sure to check if the warranty company provides sufficient coverage for those appliances in particular.

Check with your friends and colleagues as to which providers do they use, and how their experiences rate them.  Be sure to ask about their satisfaction levels with service and claims processing. The may some comments about customer service, contractor turnaround, quality of work etc.

It is important to choose a company that has a decent track record, as many consumers are dissatisfied with the services offered by many home warranty companies and it is indeed difficult to deal with some companies when it comes to claims processing.  It is not easy to find a perfect home warranty company, but you can always chose a company with least number of complaints.  There are several ways to research.

1. Check with several companies via internet.  You can often receive a free quote from an online company with no obligation.
2. Check the company’s track record using trade organizations such as Better Business Bureau
3. Research the company over the Internet for any negative reviews.  Insurance discussion boards list complaints against many home warranty companies.
4. Your real estate agent or broker will also be able to provide the name of few reliable warranty companies in the area.

Next, determine if you need additional coverage.  The coverage can vary from plan to plan with regard to duplicate sets of equipment (second refrigerators) or items such as pools ad spas.

Now, start calling the companies and make notes of their offerings. Be sure to collect information such as -

• Annual premium

• The deductible per incident (including any service call fees)

• Average turnaround time for repairs

• Additional costs for any extra coverage, if necessary.

• If you have any aging equipment reported in your Home Inspection report, be sure to confirm that the warranty company provides adequate coverage.

• Determine the period of time before the police will be in force (especially if you need immediate coverage)

• Ask for clarifications and contractual obligations.  Take note of how you are treated, which can be a good indicator of how the company treats its customers after the sale.

Lastly, glance over the contract terms when you are ready to buy the coverage.

Now you have completed your due diligence.  Hopefully you have gained knowledge about home warranty coverage in this process. Having a better idea about your coverage will help you when you are dealing with the conflicts with home warranty companies.

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!

FREE No Obligation Home Warranty Quote

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.