An infrequently mentioned fact about owning a home is that anything that can break eventually will—but homeowner warranties offer a certain level of reassurance and fast solutions when things go wrong. For a yearly fee, home warranties cover the replacement or repair of home appliances and systems that fail because of ordinary wear and tear.
The average yearly cost of home upkeep ranges from one to four percent of a home’s value, so it’s easy to understand why so many homeowners are turning to service contracts. While these warranties may not be used very often in new homes, their relatively low cost makes them an affordable protective measure. Here, we’ll discuss the importance of home warranty coverage and how 2-10 HBW homeowners warranties can protect you from the unexpected.
Home Warranty Basics
Home warranties are yearly service contracts that help cover the expenses associated with the repair or replacement of home appliances and systems. Coverage levels vary by plan, but no matter how much your plan covers, it’s not a replacement for a homeowner’s insurance policy. Rather, the warranty kicks in when a covered item fails during normal use. Warranties sometimes cover the replacement cost of items when repairs aren’t practical.
Levels of Coverage
2-10 HBW offers coverage at different levels and price points. Some plans cover a home’s major appliances, while others only cover its vital systems. With our add-ons and Supreme coverage, it’s never been easier to protect your home’s appliances and systems from sudden failure.
What’s the Difference Between a Manufacturer’s Warranty and a Home Warranty?
Home warranties are one- to two-year contracts that cover systems and appliances, and most come with a renewal option. By comparison, a manufacturer’s warranty covers a certain appliance or system from the date of purchase or installation to a predetermined expiration date.
How Do Home Warranties Differ from Homeowner’s Insurance Policies?
A homeowner’s insurance policy helps after a covered event such as a theft, a house fire, or an accident. These policies have exclusions for wear and tear unless an item was damaged by a covered event.
Do Home Warranties Help Buyers?
A home warranty factors into the purchase process after inspection, appraisal, and closing, when the buyer knows the age and condition of the home’s systems and appliances. However, if a seller includes transferable warranty coverage, it could be considered a strong selling point.
What’s Covered by A 2-10 Warranty?
Generally, home warranties cover the mechanical parts of plumbing, electrical, and HVAC systems. A home appliance warranty typically covers washers, dryers, dishwashers, stoves, and refrigerators. Higher-coverage plans may include septic pumps, spa and pool equipment, fans, and water heaters. Not all warranties cover the replacement of home systems and appliances, so you’ll need a higher-level plan for that.
What Isn’t Covered by a Home Warranty?
Home warranty plans don’t cover damage caused by fire, flood, or natural disaster—that’s what homeowner’s insurance is for. For instance, if there’s a kitchen fire, your warranty will not cover the damage. Here are a few other things not covered by a home warranty.
- Fixture and cosmetic repairs, such as batteries and light bulbs
- Appliances that aren’t maintained properly
- Seasonal maintenance
- The home’s structural components
- Alternative home appliances and systems, such as steam ovens and solar panels
When purchasing a home warranty, it’s important to read the fine print carefully. Every company has a different definition of “properly maintained,” and service records may be requested before coverage is approved. This may be a problem for a home’s second owner, who wasn’t there when covered appliances and systems were installed.
How to Use a Home Warranty
Most homeowners like 2-10’s warranties because it’s simple for them to report problems. When things go wrong, simply file a service request by phone or online. Within a short time, we’ll send a service technician to assess the issue. In most instances, we’ll then pay for the replacement or repair services you need.
Deductibles and Service Visit Charges
Service charges, also known as deductibles, are the amounts paid when service technicians respond to requests. Most times, customers can choose a higher deductible to lower the plan’s yearly cost.
Yearly Limits: Why They’re Important
Coverage limits apply per item, and those limits depend on the plan you’ve purchased. 2-10’s plans range from a few hundred to several thousand dollars in coverage per item. These limits serve an important purpose: they allow us to provide cost-effective coverage without sacrificing customer service.
Home appliance and system failures are costly events, but 2-10 HBW’s wide network allows us to access volume pricing on parts and repairs. That’s how we offer our customers service at a mere fraction of what they’d pay on the retail market.
Our coverage limits address the most common problems experienced by homeowners. While most customers will never reach their coverage limit, these rules protect us against excessive claims and keep prices low for everyone.
The Benefits of Warranty Coverage
If you’re not sure of an appliance’s age, a warranty will take effect when the manufacturer’s coverage expires. These warranties cover various items, so there’s no need to track separate plans.
When costly appliances such as water heaters and refrigerators break beyond repair, it may be possible to get them replaced. Deductibles are clearly outlined, so you’ll know just what to pay when the service technician arrives. While homeowner’s insurance is a good thing to have, a warranty fills the coverage gaps.
Warranty Purchase Tips
It’s important to choose a warranty plan that fits your requirements and budget. To make the selection process an easy one, follow these quick tips.
- Determine your needs. List the items for which you need warranty coverage. Check to see if any of your home’s older appliances may need repairs, and assess the condition of its HVAC system, water heater, and other components.
- Do your homework. While 2-10 HBW offers plans to suit a range of needs, it’s still important to do your own research.
- Ask neighbors, friends, and family members for recommendations. Our customers are typically so satisfied with the services they receive that they’re glad to recommend us.
- Get a no-obligation quote. Once you’ve decided to get warranty coverage, it’s time to request a quote. With this no-cost estimate, you’ll find it easier to work a home warranty plan into your budget. Call or click today to get your free quote.
Now that you’ve learned how to find the right home warranty plan, let’s discuss the factors homeowners should look for when deciding.
Things to Look for In a Home Warranty
While every homeowner will want something different from a home warranty plan, there are a few commonalities found in most customers’ purchase decisions. Some of these factors are listed below.
- Service fees and deductibles. If you’re looking to cut costs, choose a plan that covers only the home’s major appliances and systems.
- Coverage limits. If repairs on certain items are cost-prohibitive, select a plan with a higher coverage limit. 2-10’s Luxury Package covers high-end and specialty appliance brands for up to $5000 each per year.
- Replacement coverage. It’s important to keep in mind that, for some warranties, replacement is only included in costlier plans. If some of your home’s appliances or systems are past their prime, consider a plan that covers replacement.
- Upgrade options. For many homeowners, this is a vital plan feature. Although most plans’ lists of covered items may look long, they don’t apply to all homes. We offer the flexibility you need to cover what’s most important to your family.
- Service at all hours. If your water heater fails at 10pm on Friday night, you won’t want to wait until after the weekend to get it fixed. Some providers offer emergency service, so be sure to choose a warranty with an around-the-clock claims department.
- The contractors the company uses. One of the best things about working with 2-10 HBW is that we have access to insured and licensed service contractors. As you’re evaluating various plans, keep this fact in mind.
- Overall cost. For most homeowners, the cost of a warranty is a primary consideration. Plan limits and exclusions play a role, and the more that’s covered, the more you’ll pay. While some warranty plans are costly, you’ll pay less out of pocket for unexpected repairs. 2-10 HBW makes it easy to get an online quote, and we’ll help you personalize your plan.
Let the experts at 2-10 help you choose the right plan for your needs and your budget. Call or click today for additional details or to request a no-obligation quote.
Are Home Warranty Plans a Good Idea for Homeowners?
A home warranty plan is a wise investment, but careful deliberation is a crucial purchase requirement. Consider your home’s age, the condition of its appliances and systems, and your level of confidence in handling unexpected breakdowns.
If your home and its appliances are relatively new, or if you’ve already found a great provider network, a home warranty may not see much use. However, for those who live in older homes and have family obligations that leave no time to focus on repairs, warranty plans offer an important layer of protection and reassurance.
