Unexpected home repairs can be a pain! Have you ever noticed that items seem to break soon after the manufacturer’s warranty has expired? Learn why a Florida home warranty might or might not be the answer.
From your smartphone to your car, you can get a warranty for lots of things in your life. If you have owned your home for a while, or if you’re about to buy an older home, maybe you’ve thought about a Florida home warranty.
In principle, a home warranty seems like a good way to protect yourself from the expensive costs of replacing or repairing major appliances and home systems. Before you spend the money, let’s review what a home warranty is, how it works and if it is worth it.
Florida Home Warranty Defined
A home warranty, sometimes called a residential service contract, covers major appliances such as water heaters, stoves, and refrigerators for a set period of time. The warranty may also include systems such as HVAC, plumbing, and electrical. It is not the same as home insurance, which covers things like damage from flood, fire and storms.
Florida Home Warranty Cost
The cost of a home warranty ranges from $400 to $3,800 annually. Prices vary based on the type of property you live in and the level of coverage you choose.
Pros
- Cover unplanned expenses. A warranty could help cover all or at least some of the cost of repairing or replacing major appliances and systems that break down.
- Save time and hassle. If an item covered by the warranty breaks, all you have to do is make a claim with the warranty company and they handle the rest. You don’t have to attempt making the repairs or try finding a repair person.
Cons
- Denied claims. Even though an item may be covered by your Florida home warranty, your claim might be denied due to “improper maintenance”. For example, a hot water heater should be flushed annually. If your hot water heater breaks and the warranty company finds the unit was not flushed annually, they could deny your claim.
- Repair instead of replace. The company may choose to repair and item instead of replacing it, even if the items breaks down regularly.
- Delayed claims. When it comes to repairs and replacements, you’ll have to work on the warranty company’s timeline. It could take them days to get around to your claim—so if your refrigerator dies, you might need to need to break out a cooler and some ice.
Final Thoughts
Unlike homeowners insurance, you are not required to purchase a warranty on appliances in your home. However, if you purchase an older home where appliances are dated, you may want to consider replacing them or purchasing a Florida home warranty policy.
