Home warranty services are a great way to get discounted repairs for household items that break down due to normal wear and tear. Customers typically agree to pay monthly and additional service fees when a repair or replacement is needed. In exchange, they get discounts on major home systems and appliances. Read on to the Las Vegas home warranty guide to learn more.
Cost
The cost of home warranties varies based on several factors. The type of coverage that the home warranty covers are the most critical factor. The more comprehensive the plan, the higher the cost. Conversely, a less comprehensive plan may cover only some of the elements that are important to homeowners. Whether you need service coverage or replacement parts for your home is a personal decision.
A home warranty policy can range from $300 to $625 a year, depending on your chosen plan. This is the cost for a basic warranty, but it can increase significantly if you purchase add-ons. Also, remember that trade service fees can apply when covered appliances break. American Home Shield, for instance, charges between $75 and $125 per service call.
Exclusions
Home warranty coverage includes a variety of exclusions. Many people have misconceptions about these exclusions. They often limit coverage to certain things, including the parts and labor of a service call. In reality, however, home warranty policies only cover a particular portion of the costs of repairs.
Exclusions can range from a simple physical condition to a pre-existing condition. You must understand what your home warranty covers before signing up for it. For example, if you have had a previous major renovation, you may be excluded if the work isn’t done correctly. Exclusions can also apply to systems and appliances that must be properly maintained.
When shopping for a home warranty, compare the coverage offered by different companies. Make sure you review the contract carefully and make sure that there are no hidden fees or exclusions. Home warranty companies may offer optional add-ons that increase your coverage. It would be best if you continually asked to see a sample service contract. It will help you understand the scope of a home warranty company and differentiate them from unreliable ones.
Waiting Period
A home warranty waiting period is when the policyholder has to wait before they can submit a claim. This delay is designed to protect both the warranty company and its customers from fraudulent claims. It also allows the warranty company to provide services to those who need them most. The waiting period for home warranties is generally, at most, 30 days.
A home warranty can be extended once the policy is active. If you have a home warranty plan that expires, then you should check the policy to see if there is a waiting period. Although waiting periods do not typically apply to renewals, some new approaches can have them.
Limitations
When deciding if a home warranty is worth purchasing, you must understand the coverage limitations. Most plans only cover mechanical items, such as plumbing, electrical, and roofing. If you have nonmechanical items, consider purchasing your insurance plan instead. Then, you’ll avoid paying for a program that may not provide adequate coverage.
A home warranty can be an invaluable investment. It covers some of the most common problems homeowners face and helps you maintain your budget. But you must know the coverage limits, so you don’t pay for something you don’t need. Many home warranty companies set coverage limits for their plans to keep costs low for the average homeowner. These limits also help home warranty companies develop expectations for their clients. They define how much it will cost to replace or repair eligible systems in a home.
Unfair Practices
Consumers may be able to claim unfair practices in a home warranty when they believe that a home warranty company has engaged in deceptive business practices. For example, the salesman or individual on the phone may have lied about the terms of the warranty. These complaints may be investigated by the state’s consumer protection division or the Consumer Financial Protection Bureau.
Dan Kaplan filed the lawsuit against Fidelity National Home Warranty Company (Fidelity). In it, he alleged that Fidelity had engaged in claims-handling practices that violated the contract and the implied covenant of good faith. He also claimed that the company had failed to respond to consumer claims and inquiries. Ultimately, he was denied reimbursement.
