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The company confirms that the appliance or system is covered under the contract and assigns a service technician to diagnose and fix the problem. When an appliance or home system fails, the homeowner files a claim with the home warranty company. In exchange for the fee, the home warranty company agrees to cover the cost of repairs and replacements for appliances and home systems as outlined in the contract. The homeowner typically signs up for an annual contract and pays a monthly fee. Home warranties follow a structure similar to insurance policies. Many home warranty companies offer a variety of plans or add-ons to customize coverage to fit your needs. They are also helpful for homeowners who would not have the savings to cover an unexpected repair or replacement for a big-ticket appliance, such as a refrigerator. However, they are an excellent choice for homeowners with older homes or appliances that are no longer covered under a manufacturer’s warranty. Home warranties are not required for homeowners. Home warranties can cover household appliances like dishwashers and refrigerators, as well as home systems like HVAC, electrical, and plumbing. What Is a Home Warranty?Ī home warranty is an annual contract that provides coverage for home systems and appliances, footing the bill for repairs and replacements due to normal wear and tear. Before committing to an annual contract with a company, it’s important to know exactly what is covered under the policy, how much it costs, and what level of coverage is right for you. There are a lot of companies out there offering home warranties or home service contracts.
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Read Review Understanding Home Warranties States Investing the Most in New Housing.Cities Investing the Most in New Housing.
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Construction Project Management Software.Owner Controlled Insurance Programs (OCIP).