InsuranceActs

Insurance is a very versatile product; you can insure just about anything, from the mundane to the exotic! To the average man on the street, some types of insurance are critical and necessary; for example, life, health, accident, automobile and property insurance. Under the last category, insurance is available for securing a mortgage loan, property damage, etc. One such insurance program is ‘home warranty’ insurance; read all about buying home warranty insurance in this article.

Definition
Home warranty insurance is protection for household appliances and gadgets which make your life simple – air-conditioning, entertainment systems, cooking range, refrigerator and so on. It comes into play when you buy or lease a house which is fully-furnished and equipped.

Generally, most sellers will provide home warranty insurance already paid for, as a ‘perk’ to excite potential buyers. In other cases, buyers/owners buy home warranty insurance for added peace of mind, especially if it’s a new house with all-new furnishings and systems.

Terms of coverage and price
A standard home warranty plan will provide for the cost of repairs and/or replacement parts for the appliance covered under the policy. Home goods covered under home warranty may differ in their composition, depending upon the insurance provider, but the following items are usually included:
Kitchen: Refrigerator, cooking range, regular or microwave oven, dishwashers, trash disposal systems.
General: Heating and ventilation equipment including furnace or boilers, ceiling fans, electrical appliances, wiring for power and communication, alarm systems, doorbells, plumbing deficiencies, etc.

If there are more items or systems you want covered, other than what the program already lists, you may need to pay extra. Standard home warranty policies cost anything between $200 and $1,000 depending upon the coverage and deductibles payable. The premium should be paid upfront and the warranty is valid for a period of one year, which means you need to make an annual payment to renew your warranty.

How home warranty insurance works
The process in brief is mentioned below:
Contact the home warranty provider when an appliance malfunctions or stops working.
The warranty provider will pass on the details of the problem to a maintenance/repair service, which is contracted to handle such emergencies.
The latter contacts the customer, fixes a date and time to inspect and repair the problem.
The repairman makes out a report detailing whether the problem was resolved or not. If the latter, based on coverage terms, the insurance provider will either replace the malfunctioning part(s) or the entire appliance itself. If the damage is not covered under the home warranty policy, the customer will need to get the repair/replacement done at their own expense.

When buying home warranty insurance, get multiple quotes and compare the benefits and pricing before you make a final decision. It is also helpful to get independent opinions from people who’ve used home warranty insurance before and their experience with the insurance company in question.

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