If you are in the market for a new home, or even a used home, you will notice that many of them have a home warranty included. While home insurance is relatively standard and even necessary by law, a home warranty is something that most people are not familiar with.
What Is Home Warranty
Home insurance is about protecting the home from severe damage such as natural disasters, theft, and fire. On the other hand, a home warranty is a specific form of protection that covers appliances in the home and specific high-value systems such as the HVAC and electrical systems and swimming pools. It can also be used for smaller appliances like your TV or even kitchen gadgets. The home warranty is a contract between the homeowner and the warranty provider, and in the case that any of the warranty-covered products get damaged, stolen, or otherwise ineffective, the warranty provider will use authorised professionals to help repair or replace the item. There is a basic plan covering the fundamentals in nearly all policies, and then homeowners can choose to add on additional services to cover specific things in their homes.
What Does It Cost
Typically, home warranties have a fixed annual charge that depends on the kind of coverage you opt for. If something gets damaged, the warranty provider will send a professional to inspect the problem and suggest a course of action. In most cases, you will have to pay an additional fee for the professional who comes to check the matter. The repair or replacement will depend on the home warranty service contract and the cause of the issue. In some cases, you might get the full item replaced for no additional cost; in other cases, you might get no coverage at all if the professional suspects that the cause of the damage is not covered in the warranty. Payment for the home warranty can either be in the form of one large payment for the entire year though many service providers also offer instalment-based payment schedules. Also, the warranty cost depends on the size and type of the house and many other variables such as where the home is located, whether or not it is a shared property, and how many people live in it.
Pros And Cons
The only drawback to a home warranty is that you cannot control how the repair is carried out, the parts used, and who does the job. However, most warranty providers only work with certified and authorised professionals who are usually enlisted on the recommendation of the product manufacturer. One significant advantage is that you don’t need to worry about the age of the appliances as they are covered. Moreover, you have a clear idea of what it will cost for the warranty, and you don’t need to budget for unexpected expenses in the repair. For both sellers and buyers, this is a valuable service to have.
A home warranty can take the doubt out of the purchase decision for a used home. However, electronics and other appliances are always at risk of failure, and even brand new products can fail. Home warranty allows you to pay a fixed amount and earn the right for repairs or replacements that could cost thousands of dollars.
What type of policy can you purchase as a landlord
Our website offers various policies depending on your situation.
As a landlord, you may want to consider yourself against unpaid rent, with a rent guarantee insurance. Even the best tenants can find their circumstances change suddenly, meaning they’re unable to pay the rent. Rent Guarantee Insurance will pay unpaid rent by the Tenant of up to £2,500 per month for up to 6 months.
However, this will only protect you against unpaid rent, and any malicious or accidental damages caused by the tenants will not be covered. You could end up out of pocket for thousands of £.
To that effect, we also offer landlord content insurance, which may protect you and your property when you need it most. You could be putting your investment at risk if you don’t take out a cover designed for landlords.
Up to £15,000 to cover loss or damage to the landlord’s contents caused by specific events such as fire, storm, flood and theft.
There is a range of optional extras to boost your covers, such as malicious damage caused by the tenants, Building Insurance, Legal Expenses, and Rent Guarantee.
The Building Insurance can cover up to £600,000 to cover loss or damage to the building caused by specific events such as fire, storm, flood, theft, impact, malicious damage and vandalism.
Ref :THSI-2549 / ZD 22987