Home Warranty Coverage Facts To Know
A home warranty is a written agreement between you and the manufacturer of your appliances or systems that covers certain parts and labor for a specific period. Here are some key facts to know about home warranty coverage:
Understanding Your Home Warranty Coverage:
- A typical home warranty policy includes coverage for major appliances such as refrigerators, stoves, dishwashers, and washing machines.
- The cost of a home warranty varies depending on the provider, location, and level of service chosen. On average, the annual premium is around 5-10% of your home's value.
- Home warranties usually have a limited coverage period, typically ranging from one to five years.
Federal Trade Commission (FTC) Guidelines:
The FTC provides guidelines for home warranty providers to ensure they provide fair and transparent policies. Here are some key points to consider:
- A reputable provider will disclose the specific coverage included, exclusions, and any limitations.
- Providers must also provide a clear estimate of costs and fees before starting service.
- FTC recommends that consumers choose a provider with experience in their area and a proven track record of providing quality service.
Additional Tips for Homeowners:
To ensure you get the most out of your home warranty, here are some additional tips to consider:
- Read and understand the policy before signing up.
- Ask questions about coverage and exclusions if you're unsure.
- Keep a record of all work performed under the warranty.