Do I have a home warranty?
Here’s how to determine if you’re covered
Refrigerator on the fritz? Water leaking under the sink? If you recently discovered a problem in your new home that will cost some money to fix, you may be wondering if the repair is covered under a home warranty. If so, you could get away with paying as little as $60 for a service call to fix the issue. But how do you verify coverage and determine if your repair needs fall under a home warranty?
Understanding your coverage status is crucial for reducing stress and protecting your bank account against unexpected home repairs. Let's demystify home warranties and explore how to determine if you're covered.
Home warranties can help defray unexpected costs for home systems and appliances.
Jump to insightHome warranties cover things that homeowners insurance doesn’t.
Jump to insightIf you don’t have a home warranty, you can purchase one.
Jump to insightVerifying your coverage status
If you're unsure whether you're covered by a home warranty, here's how to find out:
- Reach out to your real estate agent: Agents sometimes purchase home warranties to sweeten the deal and push a sale over the finish line. If you worked with an agent, contact them to find out if they (or the seller's agent) included a home warranty in the offer.
- Reach out to the seller: If you recently purchased your home, contacting the seller may be the simplest way to ascertain if a home warranty is in place. They can provide details about the coverage period and the warranty provider.
- Check with home warranty providers: Researching reputable home warranty companies in your area can help determine if your property is covered. Contact them directly to inquire about coverage options for your home.
- Review service records: Past service records for your home's appliances or systems can offer clues about any existing warranty coverage. Contact the service provider to inquire about coverage details related to previous repairs.
Why does a home warranty matter?
A home warranty is a financial safety net. It shields you from the financial strain of unexpected repairs or replacements for essential systems and appliances. Rather than facing hefty bills that could drain savings or lead to high-interest debt, a home warranty offers reassurance by covering most of these costs.
It’s important to note that most home warranties don’t cover known preexisting conditions. If you’re hoping to buy one to cover a problem you’re aware of, it will likely be excluded. But if your home is already covered under a warranty, you should be able to make a claim.
Should you get a home warranty?
If you find out that you don't have a home warranty, here's why you might want to consider obtaining one. First, you have financial security. Unlike homeowners insurance, which primarily covers damage from unforeseen events like fires or natural disasters, a home warranty focuses on everyday wear and tear damage to appliances and systems. This coverage can help minimize the unexpected burden of costly repairs and replacements.
Another reason is convenience. A home warranty makes taking care of maintenance issues more convenient. You can skip the hassle of finding reliable repair services—most home warranty companies work with a network of vetted contractors. Best of all, you won't have to charge up your credit card or dip into savings to cover the unexpected repair.
FAQ
How do I know if my home came with a warranty?
You should have been told if your home came with a warranty during the negotiation and closing process. However, if you’re unsure, you can reach out to your real estate agent or the seller to find out if one is in place for your home. You may also be able to find out by contacting home warranty companies or referring to service records on appliances or systems (like plumbing) in your home.
What is the difference between home insurance and home warranty?
Homeowners insurance covers loss due to events like burglary or natural disasters. Insurance typically covers the structure of your home and your personal belongings. A home warranty covers repairs or replacement for things that aren’t included in most home insurance plans, like appliances and home systems like plumbing and electrical.
When you buy a house, does it come with a warranty?
Maybe. Many sellers and real estate agents offer a home warranty to help sweeten the deal and close the sale. It also gives buyers extra reassurance if something unexpected comes up, like a garbage disposal on the fritz.
What is typically included in a home warranty?
A home warranty usually covers major kitchen and laundry appliances and home systems like plumbing and electrical. They may also cover extras like roof leaks, water softeners, pools and hot tubs—but those items are usually add-ons to basic coverage.
Bottom line
Understanding whether you have a home warranty is essential for safeguarding your home and finances against unexpected maintenance costs. Whether you're a new homeowner or considering adding home warranty coverage to your existing property, it's always smart to take proactive steps to assess your coverage status.
