What’s Covered?
All homeowners are looking for the same thing: peace of mind and the security of knowing that if something goes bump in the night, all it will take is one phone call to have it taken care of. In a perfect world, there would be one all-inclusive home warranty to address all potential worries, ranging from extreme damage brought on by natural disasters to the malfunction of one of your beloved household appliances. But we do not live in a perfect world. So we have to make a choice and hope for the best.
Two specific types of home warranty services can address your needs. You have options. The differences between the home builder warranty and the independent home warranty service will address two sets of criteria; the major distinction is this: a home builder warranty generally provides coverage against major structural defects while the independent home warranty includes plans that cover your household systems and appliances. That being said, it’s important to understand what that entails. The most important thing you can do before making this investment is to read the terms and conditions of each and thoroughly comprehend the significance of their meaning.
It’s in the Fine Print
If you read into the fine print of most home builder warranties, you will learn that the coverage under this policy is limited to providing protection against major structural defects of the “load-bearing” portions of your home. “Non load-bearing” items excluded from coverage run the gamut from HVAC, certain wall tiles and coverings, exterior finishings, appliances, *some plumbing and electrical and others.
When the repair or replacement of an item under the home builder warranty is approved, matching the repair or replacement to its previous condition will be attempted, but there is no promise that the article will be returned to a like-new condition.
On the other side of the equation is the independent home warranty service. This type of warranty allows the homeowner to pick and choose what components they would like to cover, with flexible plan coverage ranging from kitchen and laundry – to home office – to electrical – to – HVAC and others. One can elect to cover only specific items or choose a comprehensive plan that covers all, with the option of adding individual units as add-ons.
The consumer is typically rewarded for choosing the extensive plan coverage with discounted prices and many other value-added incentives, like toll-free assistance and advice that is provided 24/7/365. Another feature of the independent home warranty service consumers find attractive is found with the home warranty service providers who guarantee like-kind or better replacement. Enrolling in a plan that makes that pledge is recommended.
Exclusions from Coverage
Taking a no-nonsense approach to maintaining your home can prevent a lot of trouble later on down the road that can cost a bundle. One reason home warranty service providers have to incorporate exclusions from coverage into their conditions is to avoid repairing items that wouldn’t be in need of repair if they hadn’t been neglected. Fair enough. It is recommended, however, that you carefully take note of any other exclusions from coverage as listed in the terms and conditions of your warranty policy.
The standard home builder warranty will include an extensive listing of exclusions from coverage, far-surpassing the case of owner neglect; which may include some of the following conditions:
- Insect infestation
- Water damage, leaking roofs and some plumbing
- Normal wear and tear
- Drainage deficiencies not affecting the ‘structural integrity’ of the home
- Recreational facilities, pools, saunas
- Any loss or damage not acted on in a timely fashion
- Home improvements made after the Start date
- Dampness or condensation resulting from neglecting ventilation maintenance
- Oversights on the part of the builder or his agents and subcontractors
- All work not completed by the builder
- Any defects resulting from natural disaster or accidents
- Chemical contamination from work done at time of construction
- Any defects caused or aggravated by owner, occupants or guests
- Property damage or bodily injury resulting from structural flaws; including plumbing, heating and cooling
- Incidental costs acquired by owner vacating premises due to unsafe/unlivable conditions during the time of repair
With the standard independent home warranty service plan, the list of exclusions from coverage is much smaller – covering the basics, such things as: insect infestation, neglect or improper maintenance of appliances and improper installation of appliances and household systems.
Filing Claims
Reputable home warranty services are designed to provide convenience and eliminate the hassle of filing a claim. Ordinarily, there will be one number to call in order to dispatch the specialized trade service professional to your home to come assess and take care of the damage in one shot.
Filing a claim with a home builder warranty provider can present some interesting predicaments. After a close reading of the obligations of the homeowner when filing a claim, the best advice we can give is to proceed with caution. Your full cooperation will be required. Expect an inspector or multiple inspectors to show up at your home to thoroughly investigate your claim. Document everything. The more articles you can submit as evidence of the problem, the better off you will be. These can include reports, estimates, diagrams and photos. When the determination is made in favor of the homeowner, s/he is expected to sign a release waiving all rights.
Read the Arbitration Provision of your Home Builder Warranty
With some home builder warranty providers, if your claim is denied and you cannot settle it through their dispute resolution process, you may be asked to sign an arbitration provision. By doing this, you are waiving your rights to a trial in a court of law and you may have to submit your claim to an arbitration company from the home builder warranty provider’s list of approved arbitration companies. Also, take heed of the fact that many of these providers only accept reports from a list of approved construction consultants – encompassing inspection firms, contractors and others.
Concluding Thoughts
In sum, as painful as it can be to read through the fine print of a warranty policy, it is the best way to go about selecting the warranty provider who is going to deliver what is promised – and it is the most effective way to select either a home builder warranty or an independent home warranty service. Safeguard the quality and craftsmanship of your home and all the beloved items within today and it’ll make a world of difference in your world tomorrow!
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