02/09/2017
The Most Common Myths about Home Warranty Service Agreements
Home Warranty Service Agreements are a helpful tool that homeowners can use to avoid nasty financial surprises when common systems and appliances break down in their homes.
However, Service Agreements and what they cover are often misunderstood by homeowners. To learn about the seven most common Home Warranty Service Agreement myths (and their truths), read on now:
7. Home Maintenance Can Be Ignored
Even with a Home Warranty Service Agreement covering your property, home maintenance is still important and cannot be neglected. A Service Agreement protects against the failure and/or breakdown of a home’s most important systems and appliances, but the Service Agreement is void if the breakdowns are due to lack of maintenance.
To protect your home and get the full value out of your Home Warranty Service Agreement, take good care of your HVAC system, major appliances and other important parts of your home. To remember when and how you need to maintain your systems and appliances, create a home maintenance schedule.
6. Home Warranty Service Agreements Are Expensive
The cost of a Service Agreement varies throughout the industry, but the price is surprisingly affordable. Most basic plans range from $30 to $50 per month.
The savings provided from such a small investment can add up fast. Because coverage includes protection on the most likely breakdowns that will occur, it’s no wonder most homeowners place around two claims each year, saving an average of $466 per claim.
5. It Doesn’t Matter Which Home Warranty Company Homeowners Use
When a homeowner searches for a Home Warranty Service Agreement company, they’ll be flooded with a seemingly endless array of choices. However, not all companies are created equally.
It is important to thoroughly research a company before committing to the purchase of a Home Warranty Service Agreement. Make sure to ask questions about how long the company has existed, the percentage of claims that get paid out, whether the company has 24/7 customer service support and more.
4. A Home Warranty Service Agreement is the Same as Homeowners Insurance
A Home Warranty Service Agreement and homeowners insurance are two very different things, and each has a different purpose. Homeowners insurance offers protection for your house and for the possessions inside it from damage caused by specific problems like fire, wind and break-ins, while Service Agreements cover systems and appliances malfunctions.
3. Filing a Claim Is Difficult and Time Consuming
If you’re working with the right company, filing a claim (also called submitting a service request) should be quick and easy. For example, when requesting service through 2-10 Home Buyers Warranty® (2-10 HBW®), you have several simple options to choose from.
2. These Service Agreements Don’t Actually Cover Anything
Many homeowners have been mislead about the benefits of Home Warranty Service Agreements, and they might think that these products don’t actually cover anything important in their home. Truthfully, Service Agreements provide coverage for a very specific list of systems and appliances.
Take the time to read through your paperwork to learn more about exactly what’s covered. If a home has additional features like a pool or spa, those systems can also be covered at an additional cost.
1. A Home Warranty Service Agreement Covers Everything
This is one belief that sets homeowners up for major disappointment, because a Home Warranty Service agreement does not cover everything that can go wrong with a home. The coverage documents will explain, in detail, what is covered and what isn’t. Most Service Agreements cover the following systems and appliances:
Air conditioning and heating units
Electrical wiring
Refrigerator
Oven
Dishwasher
And more!
Are you interested in purchasing or renewing your 2-10 HBW Home Warranty Service Agreement? Visit 2-10.com to get started.
