A home warranty covers the cost of repairing home appliances and utility systems if they breakdown. Home warranties offer homeowners the financial protection and safety of knowing that unexpected problems with their appliances and critical systems, such as HVAC, electrical and plumbing, can be dealt with without large out-of-pocket expenses.

Home warranties offer some definite benefits to homeowners, including peace of mind and a sense of security. A feww additional benefits include:

• Saving money on expensive repairs.  Homeowners will typically pay less overall for repairs and replacements, especially when expensive appliances and utility systems are involved. Home warranties offer protection from unexpected, surprise repair costs.
• Access to skilled service contractors.  Home warranty companies utilize a network of service contractors that can be dispatched for repairs in the event of a claim. This is helpful for homeowners who might not be handy or those who do not have a regular contractor.
• Coverage for breakdowns from normal wear and tear. On average, consumers place two and a half claims per year, and over half of homeowners had a home repair emergency in the past 12 months.

It's important to note exclusions can lead to claim denials. If coverage is denied, the homeowner must pay the service call fee and pay for any necessary repairs. Home warranties also do not cover "improperly maintained" items - and the warranty company has the discretion to define what that means - and items with pre-existing condition also are not typically covered. Extensive damage could mean out-of-pocket expenses for the homeowner, or the warranty may only cover repairing items rather than fully replacing them.

How Does a Home Warranty Work?

Homeowners pay a monthly or yearly premium to maintain their home warranty coverage. When a covered item on the home needs to be serviced, repaired, or replaced, the homeowner submits a claim to the administrator of the program. The administrator takes the call and determines the next steps. A licensed and insured service provider is then dispatched to the home to investigate and, when needed, provides repair or replacement to resolve the claim. In this process, the homeowner is protected from paying for the unforeseen costs related to the breakdown. Some programs may require the homeowner to pay a small deductible depending on the coverage.

What Does a Home Warranty Cover?

A home warranty generally offers coverage for major systems and appliances throughout the house. However, it does not cover structural features and doors or windows.

The coverage varies by company and plan, but a typical home warranty can cover any of the following:

• Heating, ventilation and air conditioning system (HVAC)
• Gas line
• Electrical system (interior or exterior)
• Plumbing and drainage system
• Water service line
• Sewer/septic system
• Water heater
• Appliances, such as fridge/freezer, stove/oven/range, built-in dishwasher, built-in microwave, garbage disposal, built0in trash compactor
• Washer and dryer
• Garage door opener
• Coverage for pools, spas, well pumps
• Smart thermostats
• Surge coverage

In the event that a major repair or replacement item is needed, such as an HVAC system (if covered), costs can range anywhere from $5,000 to over $12,000 to replace.

For further information on the solutions we can provide which include both  the Administrator and Insurer please contact Mark Standen, Mocden Insurance Services:

+1 315 359 6005

+44 (0)1322 476 276

+61 3 638 77 044

Mob: +44 (0)1322 476 276

Mob: +61 (0)490 056 472

mstanden@mocden.co.uk

www.mocden.co.uk