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When To Carry Home Owners Warranty Insurance
Let a home owners warranty policy pick up the slack from where your homeowners insurance policy leaves off. If you are curious about when it is important to carry home owners warranty insurance, there are a few questions you can ask yourself to make the decision an easier one. Are you short on time? Do you enjoy spending your time off with family and friends enjoying your home rather than repairing it all the time? Then a home owners warranty policy might be something you should consider.
Home Insurance vs. Home Warranty Policy
Home insurance and a home warranty policy might sound very similar off the bat but in reality they are rather different from one another. A home insurance policy must be carried by every homeowner to protect there home and assets from theft, fire, weather damage or any other unforeseen act that can damage a home. It also protects you the homeowner if someone should get injured on your property. A home warranty policy on the other hand, helps to protect the systems and appliances in your home from natural wear and tear that occurs with normal use. It’s basically an insurance policy for your stuff that makes sure your stuff keeps functioning the way it should. If for example your dishwasher goes on the fritz, a technician is sent out to repair or replace it. Of course we always hope for the best when it comes to our appliances and systems like air conditioning but it’s a fact of life that these items may break or need replacing.
How Does Home Warranty Insurance Work
When you carry home owners warranty insurance and a system or appliance goes down you file a claim just like you would with any other insurance policy. Typically, claims can be phoned in or reported online 24/7. After that a technician is dispatched to the house to either fix or repair whatever went down. If you don’t take out insurance, these simple repairs can wind up costing a small fortune, but with a policy the out of pocket cost of a repair or replacement is minimal. If you are thinking of taking out a policy, it is important to talk with your insurance broker to make sure that you fully understand the contract and how it works. As with most insurance policies, there are varying degrees to the coverage that you can take out. A standard company like Home Warranty Of America for example, allows a homeowner to choose between a premium plan, a premium plus plan and in addition, there are various a la carte add-ons that allow you to tailor your policy to suite your needs.