Home Warranty Insurance Contracts (HWI) are all the rage. Generally, they state if a covered appliance or system breaks down, they will pay for the repair. Do not be lulled into a false sense of security. The contract will list what is covered, but more importantly, what is not covered. Typically, ¾ of the text in the policy will deal with what it will not cover.
Some examples of non-covered items are:
Window unit air conditioners
Fireplaces
The plumbing line stopped up by tree roots
Bathtubs, sinks, showers
Garage doors and track assemblies
Doorbells that are part of an intercom system
Freestanding freezers
Above ground spas
Damages caused by fire, water damage, electrical failure, or defectively manufactured items.
If there is a dispute about whether an item can be repaired or replaced, many contracts state that the HWI has the sole right to determine whether the appliance can be repaired or replaced.
The policies have a dollar limit on what they will pay for a covered item, a repair or a replacement. Some examples of limits are:
$1,500 for air conditioning and heating systems
$1,500 for a leaky roof.
$1,500 for a well pump
$3,000 for a built-in pool repair.
Other typical limitations of the HWI’s liability include:
The HWI will not repair or replace items covered by a manufacturer, or extended warranty.
The HWI has the exclusive right to choose a repair person of their choosing.
Many HWI policies require you to pay the repairman for the initial visit to evaluate the situation. This is called a “Trade Service Call Fee”. This typically runs from $75 to $125.
The HWI will not be responsible for any damages caused by one of their own assigned repair people.
Buyer beware, READ THE ENTIRE POLICY to know what you are getting into BEFORE you make a purchase.
For any problems with your Home Warranty Insurance Policy, or any other insurance-related problems, give the Law Office of Elliott Klein a call for an evaluation.