If you own a home, chances are you know how costly it can be to maintain. The cost of home repairs can quickly add up. If you are thinking about purchasing a new home, or if your current address needs a facelift, you may be wondering if any repairs you make are covered through your insurance. Homeowners insurance will cover the costs to repair your home if there is damage caused by fire, hurricane, hail, or any other type of natural disaster listed in your policy. Home repair insurance is additional coverage purchased in addition to homeowners insurance that covers the cost of repairs to the appliances in your home.
Now that you understand the difference between the two types of insurance lets talk a little more in-depth about home repair insurance.
Home Warranty
A home warranty will cover your homes’ crucial systems and appliances from breakdowns caused by normal wear and tear. For example, let’s say you come home from an evening out and you notice water leaking from your dishwasher.
If you purchased a home warranty that includes coverage for your dishwasher, the home warranty can cover its repair or replacement.
What is covered In A Home Repair Insurance Policy?
Some features covered in a home repair policy include but are not limited to:
- HVAC
- Dishwashers
- Water heater
- Range and oven
- Electrical systems
- Ductwork
If you are considering purchasing home repair insurance, make sure it covers what you want it to. Another thing to take note of is if you are purchasing a newly built home, the items inside are probably still covered by the manufacturer’s warranty.
Coverage varies from one policy to another and from state to state. This is why it’s very important to read through the policy before you decide to commit to it.
What’s Not Covered
Home warranties don’t usually cover problems that are discovered during a home inspection or a result of poor maintenance. In addition to these, there are several items that home repair insurance doesn’t cover that just may surprise you.
Garage Door and Tracks
Typically, door openers for your garage may be covered in a home warranty, but the doors and tracks are not. In fact, if you’re worried about your home looking less than aesthetically pleasing, or your garage door being covered, take another look at your homeowners insurance plan to be sure of what is covered, or be prepared to pay for this expense yourself.
Doors, Windows, and Walls
Home warranties usually apply to systems and appliances so structural problems are not usually covered. Some home repair insurance policies allot for window repairs if it threatens the structure of your home, but doors and windows are covered through your homeowners policy.
Sprinkler Systems
Sprinklers, valves, and faucets are considered outdoor plumbing so they will be excluded from your home warranty. While these features can contribute to the overall aesthetic value of the home, they are not considered to be internal. Usually, sprinkles don’t pose a threat to the structure of your home so that is why they are excluded from your home repair insurance.
Septic Systems
Plumbing is typically standard for home repair insurance, so it’s shocking to find out it’s not. The reason is that septic tanks are located outside of the home and therefore not included in the warranty.
Do I Need Home Repair Insurance?
The answer is: it’s up to you. Each home warranty policy offers various levels of coverage and conditions of coverage. Home repair policies may cover hot items such as air conditioning systems, electrical wiring, or even appliances. Having a home warranty policy can offer you peace of mind should one of these hot ticket items breaks, but there is no way to say if you need a policy or not. The best home warranty policy would be the one that offers you the protection that you need for your home.
Can I Get A Home Warranty For Free?
Mostly no. However, some home warranties ma be included when you purchase a new home. If you have bought a brand spanking new house, the builder may offer a basic home repair policy only because it is brand new construction.
It may be limited to electrical, plumbing, and air conditioning (depending on where you live).
Be advised also that some home mortgage lenders may offer a free home warranty as part of their services and packages. You may see the option to opt-in or out of the home warranty when you sign your mortgage documents.
Buying a new home is an exciting time in your life and you don’t want to have to worry about potential problems with your new home. A home repair insurance policy or home warranty, as they are often called, can be a way to offer you security and peace of mind with unexpected systemic and appliance issues.
