A home warranty can help with repairs or a replacement of electrical, plumbing and appliance systems and will provide the owner peace of mind when unexpected issues arise. This article provides you some general information on what a home warranty covers and what key differences you may look for when comparing home warranty policies.
It is important to note that a home warranty is not the same as homeowner insurance. Homeowners insurance may provide coverage for things like flooding, fires, wind damage, and theft but it will not over your home’s systems and appliances.
When it comes to basic coverages, home warranty companies provide you a comparison chart which shows the differences between their various levels of service. The pricing of a home warranty for a single family home can be between $300 – $650 for the first year depending upon the level of coverage. Pricing for condominiums and townhomes also vary. In addition to the initial purchase there is a service fee for each call made. The following 5 companies service properties in Hawaii (click image to download brochure):
When comparing home warranty companies it is important to first determine what systems you are most concerned about. For example, if you have multiple split A/C systems, you want to make sure that your policy addresses being able to have coverage for each system. In addition, you should have an understanding for what the cap on coverage might be. If you have older kitchen appliances then you want to make sure your plan covers those appliances of concern. It is also important to note that up until this time in 2020, there is no warranty coverage for photovoltaic systems in Hawaii. The following are some differences in coverage you want to inquire about:
- Limitations on age of systems
- Cap of coverage on systems or appliances
- Restrictions on the number or aggregate dollar amount of claims each year
- Differences on freon cost for A/C systems
- Warranty on parts installed (ie. 30 days, 90 days, etc.)
- Waiting period before coverage begins
- Seller’s coverage when listing a property for sale
Home warranties can make homeownership less stressful when it comes to maintenance and upkeep. Though you can’t always predict when a repair is needed, it is a good idea to be prepared.
