When evaluating a home warranty, you should take the time to understand what is not covered. This article will look at things like pre-existing conditions, normal wear and tear, and manufacturer defects. We’ll also look at things like natural disasters that may occur.
Pre-existing Conditions
If you are unsure whether a home warranty will cover pre-existing conditions, check the warranty terms. Generally, pre-existing conditions will only be covered if they are discovered after the purchase. Nevertheless, there are some circumstances when pre-existing conditions may be covered.
Before the home warranty coverage period, a pre-existing condition is a failure or defect in a house appliance or system. This can be due to age or lack of maintenance. Some home warranty companies such as home warranty companies in Texas require a home inspection to identify any known pre-existing conditions to ensure you are covered.
If you think a home warranty covers pre-existing conditions, consider reconsidering. Some home warranties will cover certain pre-existing conditions but not others. Some conditions, such as mold, will be excluded.
Normal Wear and Tear
Normal wear and tear refers to damage that happens over time to a home. Although some damage is unavoidable, proper maintenance and repairs can reduce the risk of failures and damages. Examples of everyday wear and tear include roof leaks, slow-leaking pipes, and mechanical breakdowns of appliances.
A home warranty provides coverage for replacing or repairing systems that break down due to normal wear and tear. Everyday use wears down these systems. Whether you have a water heater, furnace, or HVAC system, these systems can experience failure over time. Home warranty policies make requesting service for these components as easy as possible.
If a home warranty company does repair your home, they may charge you a service fee, usually $75-$125 per issue. A home warranty company might deny a claim if the issue resulted from improper installation or use.
Manufacturer Defects
There are many things to consider before purchasing a home warranty. Home warranties differ from homeowners insurance, so it’s essential to understand precisely what is and isn’t covered. For example, your home warranty won’t cover pre-existing conditions. You should read your service contract carefully to ensure you know what’s covered and what isn’t.
Natural Disasters
You should consider purchasing a home warranty if you live in a climate prone to natural disasters. It will provide structural damage coverage to your home, including its external and internal structures. It also covers damage to any adjacent structures. In addition, you can get personal property coverage in the event of theft or an insured disaster.
A home warranty may not cover natural disasters, but you can still get help in case of a disaster. The federal government can provide emergency assistance if a disaster strikes a region. It can also make loans and grant programs available to people who need assistance. Some disasters can even result in the federal government purchasing damaged homes and lands.
While a homeowners insurance policy covers many types of natural disasters, most don’t cover damage caused by earthquakes or floods. If you live in an area where natural disasters are frequent, you can purchase supplemental insurance that will provide full coverage. However, this supplemental insurance is more expensive.
