As we move through summer towards fall your air conditioner has likely been working on overdrive to beat the heat. Having it quit now can be devastating as sweltering summer nights make sleeping more difficult. Many people might be disappointed to learn that their homeowner’s insurance may not cover the repair cost.
Homeowner’s Insurance policies cover the financial costs (up to the policy limit) of repairing or replacing your home and possessions due to damage caused by covered perils, such as theft, fire, windstorm, and other disasters. It also offers liability coverage should someone be injured on your property or by a family pet.
Unfortunately, your homeowner’s insurance policy is unlikely to offer coverage for your appliances and HVAC systems that require maintenance or replacement due to everyday wear and tear.
A home warranty is a yearly service contact that protects specific home systems and appliances. Depending on your service agreement you may have coverage for your kitchen appliances and washer/dryer as well as your HVAC, electrical and plumbing. Typically, these contracts are 12-month contract terms. A home warranty can be customized or bundled for your needs. On average an appliance and system combo plan costs about $75 per month.
While homeowner’s insurance is usually required by lenders or other entities such as your homeowner’s association, a home warranty is normally elective. Similar to a homeowner’s insurance policy, a home warranty has a deductible. The terms of how much out of pocket needs to be met before the home warranty company pays out depends on your contract. Generally, a one-time service call costs around $125 before the home warranty kicks in.
Getting the combined coverage of a home warranty and homeowner’s insurance is a great way to protect your home from the unexpected and the day to day wear and tear.