Phoenix Insurance & Warranty Home Repairs
|After having Phoenix residential construction, it is not unusual for the property owner to mistake a home warranty for home insurance and vice versa, but they are not the same thing at all. A home warranty typically covers the cost of repair and replacement of home appliances, whereas home insurance policies cover general property damage, even though there may also be some sort of protection against damaged appliances. As a result, numerous property owners decide to purchase both for peace of mind. Below, we briefly show you how each protection item works.|
Warranty & Insurance Policies
A warranty is purchased by the seller or buyer and if it is the seller, the cost of the warranty is included in the purchase price and becomes active as soon as the new owner takes possession of the home. Depending on where you live and the size/contents of the property, a home warranty will cost $50-$400 a year and is much cheaper than a standard home insurance policy. Additionally, the holder of the warranty will need to pay a set fee (usually $100 or so) every time they use the warranty. At the end of the year, you can renew the warranty or allow it to lapse.
Home insurance needs to be bought separately and the property holder has to pay a premium and interest. A fixed interest rate means the cost doesn’t change while a variable rate is at the mercy of the market.
Home warranty: A home warranty does not cover the repair of all home appliances. In general, the more you pay, the more you are protected. Low cost warranties are unlikely to cover garage door openers, refrigerators or dryers. The warranty covers the cost of repair or replacement of specified items; however, the insurance company can refuse to pay if the appliance is damaged by the property owner or shows signs of excessive wear and tear.
Home insurance: In some cases, home insurance will only cover appliances deemed vital to the lives of the occupants. Furthermore, most insurance companies will only pay out if the holder of the policy can prove that the damage affected the whole house. For instance, appliances damaged during a storm will likely be covered; depending, of course, on the terms of the policy.
Issuing a Claim
If an appliance breaks or is damaged, the holder of the warranty needs to contact their home warranty company. The organization should then contact the warranty holder to set an appointment to arrange for a repairman and for his fees to be covered for fixing or replacing the damage item.
Home insurance companies will usually only pay for repairs, as it is the policy holder’s responsibility to find a licensed residential contractor. All insurance companies have a limit on the amount they pay and if you go above this amount, the remaining costs must be paid by you, plus you can expect to pay a deductible when issuing a claim.
Do not assume that a warranty or insurance alone will cover your property and possessions. For complete protection, you should acquire both.
Insurance & Warranty Contractor
Doege Development, LLC is a licensed, bonded, and insured residential construction firm that offers em>Phoenix insurance repairs. Call (623) 242-5247 or click here to speak with a company representative today!