Home Warranty Insurance

Home warranty insurance? I already have title insurance, is that what you mean? No, home warranty insurance is actually an insurance policy that covers the appliances in your house. Thus, when an appliance or a system, such as the AC or heating system, breaks down then the insurance company will either fix it or even replace it.

Now if you have a newer home, you do not need home warranty insurance, as your systems as well as your appliances are basically new and will not be subject to major breakdowns any time soon, besides which, if one of them would break down, you still would not be able to recoup the cost of what you spent on the insurance.

In essence with home warranty insurance, you are actually purchasing peace of mind, so that if something major goes wrong with your systems, or appliances, someone else has to fix it! Interestingly enough, no matter how many parts, nor how many hours are spent fixing your appliance or system, all you need to pay is a low flat deductible, which usually is about $50. They can spend days seeking out the problem until they find it, and you are still out only the low flat deductible fee.

When you sell that house, it will become much more salable if you have been carrying this kind of insurance. This is because the fact that you carry this type of insurance will tell a buyer that the home has been superbly looked after, that all appliances and systems work well, and that if something does go wrong it will not be his problem, as he will inherit the home warranty insurance from you as the new owner!

On the negative side of home warranty insurance, the deductibles are strangely structured. For instance, if on the same day, your AC system stops working and on that same day, your refrigerator breaks down as well, you will owe the insurance company with which you have your insurance, two separate deductibles, as two distinct separate appliances or systems broke down, even if the same repairman is there to fix both problems.

Also on the negative side of home warranty insurance, the cost of the premiums will run you anywhere from $500 to $1,000 a year, depending on many different factors, thus if you have been maintaining your home as it should be and you do not anticipate having any problems, perhaps this type of insurance is not for you. Factor in the deductible as well in the yearly cost should you have minor problems.

Probably the worst of the negatives is that the insurance company will always try to repair the problem, rather than have to face the possibility of having to replace the unit or system involved. Two things are important to realize here, first whatever the inefficiencies of the appliance or system are, each time you have it fixed by the insurance company, you will have to continue with the inefficiencies. Secondly, each time you call to have the same unit or system repaired, you will have to pay the deductible.

You may want to check out my other guide on health insurance for individuals and maternity insurance

Home Warranty Insurance

homeowners warranty insurance

Home Warranty Insurance

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