Homeowners know that any time something breaks down in their homes itís going to be their responsibility to pay to have it fixed. Home repairs can be something small, such as replacing a faucet, or something much larger such as replacing a water heater. Home repair insurance offers a way to help pay for those unexpected repair costs.
What Is Home Repair Insurance?
Home repair insurance is also known as home warranty insurance. Home warranties offer new homeowners the peace of mind in knowing that if anything breaks down, the costs are covered. Home repair insurance offers protection against mechanical breakdowns that are not covered by a typical home insurance policy. Some of the things that a home repair insurance policy may cover include furnace failures, air conditioner breakdowns, clogged pipes, and appliances that quit working. Typically, a home repair insurance policy is part of the home sale and covers the first year of home ownership. Homeowners will then have the option to continue the coverage or not.
How Home Repair Insurance Works
Home repair insurance policies are often part of the sales contract with the sellers covering the costs of the initial annual fee, which can be from $250 to $600. The home repair insurance company has contracts with local repair companies that will provide the services you may need for your home. If something breaks down, you just call the home warranty company; it contacts a service agent. If the contract covers the repairs, the repairperson fixes the trouble, and all you pay for is the service visit, which is usually between $25 and $75.
Can I Buy Home Repair Insurance for My Current Home?
Home repair insurance is not just available to new homeowners buying existing homes. Anyone who wishes to purchase a home repair insurance policy can. These home warranty policies are available from several different companies across the country. However, itís important to know that in some states home repair insurance is not regulated, which means that when choosing a policy, individuals must take care. When signing up for a home warranty program, make sure to read the policy carefully. Itís important to make sure the policy covers all thatís expected of it.
Why Get Home Repair Insurance?
Home repair insurance offers you peace of mind in knowing that if something major breaks down in your home, at least some of the costs are covered. Imagine that your air conditioner breaks down in the middle of summer. The cost to repair a compressor can top $1000, and the cost of replacing the entire unit can exceed $3500. A home repair insurance company will pay for the cost of replacing the air conditioner, minus the fee for the visit and the yearly premium, so you save thousands of dollars.
Home repair insurance or home warranties are a good idea if living in an older home. The typical lifespan of some of a homeís major appliances such as the furnace and water heater is around 15 years. If these appliances are at the end of their life-cycle, itís well worth looking into a home repair insurance policy.