Home warranties can provide peace of mind for homeowners by covering the cost of repairs and replacements for major home systems and appliances. However, misconceptions about home warranties often lead to confusion and missed opportunities. Here, we debunk six common home warranty myths.
Myth 1: Home Warranties Cover Everything
Debunked: While home warranties cover many significant home systems and appliances, they do not cover everything. Typical warranties include coverage for HVAC systems, electrical systems, plumbing, and major appliances like refrigerators and ovens. However, structural issues, pre-existing conditions, and items not listed in the contract are generally excluded.
Myth 2: Home Warranties are Only for New Homes
Debunked: Home warranties are beneficial for both new and older homes. For older homes, warranties can be particularly valuable as systems and appliances are more likely to fail due to age. New home buyers also benefit from warranties that cover potential defects in workmanship and materials.
Myth 3: Home Warranties Replace Homeowners Insurance
Debunked: Home warranties and homeowners insurance serve different purposes. Homeowners insurance covers damage from events like fires, storms, and theft, whereas home warranties cover repair and replacement costs for home systems and appliances due to normal wear and tear. Both are essential for comprehensive home protection.
Myth 4: All Repairs are Fully Covered
Debunked: While home warranties cover many repairs, they often come with limitations and exclusions. Homeowners may have to pay service call fees, and some repairs may only be partially covered. It’s essential to read the warranty contract carefully to understand the extent of coverage and any potential out-of-pocket costs.
Myth 5: You Can’t Choose Your Service Provider
Debunked: Many home warranty companies have a network of pre-approved service providers, but some allow homeowners to choose their own licensed contractor. Always check with the warranty provider to understand their policy on service provider selection.
Myth 6: Home Warranties are Not Worth the Cost
Debunked: The value of a home warranty depends on individual circumstances. For homeowners with aging systems and appliances, a warranty can save thousands in repair and replacement costs. Additionally, warranties can provide peace of mind, making them a worthwhile investment for many.
Conclusion
Understanding what home warranties cover and the limitations involved can help homeowners make informed decisions. By debunking these common myths, homeowners can better appreciate the value that home warranties offer and avoid unnecessary surprises.
