Answers to the key questions first-time buyers need to know about their home warranty
What is a Home Warranty?
A Home Systems and Appliances Service Agreement helps homeowners reduce the overall cost of owning a home by protecting them against unexpected system and appliance breakdowns.
What Items or Systems Does this kind of Home Warranty Cover?
A Home Warranty Service Agreement covers major systems and appliances that malfunction or break from normal wear and tear. These expensive-to-repair items such as air conditioning and heating units, electrical wiring, refrigerator, oven, dishwasher and garage door opener will age over time, making repairs inevitable. A Service Agreement offers protection from these repairs.
How Does a Home Warranty Service Agreement Differ from Home Insurance?
Homeowner’s insurance is often included in a homeowner’s mortgage and covers loss from incidents like fire, storms and vandalism. A Home Warranty Service Agreement covers major systems and appliances within a home from breakdowns caused by normal wear and tear. The two are complementary and do not overlap coverage.
How Does the Service Work for Homeowners?
When a covered item breaks down, homeowners simply log their service request online in a few easy steps, or they can call our toll-free number 24 hours a day. Your request will be dispatched to an approved and insured contractor in your area. They will contact the homeowners to set up an appointment, or they may call them directly to expedite the process. When the contractor comes to their home, the homeowners will pay a low service fee that varies by state. The contractor makes the covered repairs and bills 2-10 HBW for all of the work. Your homeowners are covered, so they owe nothing more.
Are Home Warranty Service Agreements for Systems and Appliances Transferable Between Owners?
Yes, these home warranty products are transferable at the time a home changes hands and the costs can be included in the price of the home. In fact, a home warranty is likely to increase the final sales price of a home. A legal document, such as the HUD statement will be required to ensure the Service Agreement being transferred to the correct individual. After the remaining term of the warranty, the new owners will simply have to renew their home warranty coverage on an annual basis.
Do These Warranties only Cover New Homes?
While systems and appliances warranties are certainly recommended for new homes—along with structural warranties that we sell to builders of new homes—2-10 HBW offers a variety of products to cover owners of both new and used homes.
Remember that a breakdown can occur at any time, even in new homes. Newer systems and appliances are more complex and can cost substantially more to repair. A 2-10 HBW warranty protects you from these unexpected repairs. HBW customers who have been in their homes for three years or less place an average of two claims each year.
How Much do Home Warranties Cost?
The average cost of a basic plan ranges from $400 to $600 a year, with more complex plans adding $100 to $300. Costs for home warranty plans are usually paid up front before the coverage become effective.
Home Warranty Service Agreements protect homeowners from unforeseen repairs and replacements. Visit 2-10.com to find out more!
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