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New Home? What about the Home Warranty waiting period?

| June 13, 2019, 11:21 AM

white isolated house with plants

A home warranty is an important tool for a homeowner. By the way, you should never confuse a home warranty with homeowner’s insurance. If you have recently shopped for a home warranty, you might have come across a waiting period. So, yes, there is a waiting period for a home warranty. You will still get to enjoy the home warranty benefits, but you just have to wait for some time.

How Long is the Waiting Period?

Well, the waiting period of a home warranty will depend on some factors. One of them is the company offering the warranty. A home warranty company will have its specific waiting period. Generally, it can range from between 15 days and up to 30 days. However, it can get longer than that. Some home warranty companies will have you wait for up to 6 months before you can enjoy the coverage–however, waits of that length are rare.

Most of the home warranty companies will have you wait for around 30 days. A home warranty will work similarly to an auto insurance policy. Suppose you are involved in a car accident, you will be covered for the damage as well as future damage, but something in the past–not so much!

A home warranty will also not cover your damages that are done before you take the warranty.

The waiting period here helps to ensure that the systems and appliances that are about to be covered have truly stopped working. The cause of a non-functional system and appliances should only be normal wear and tear or old age.

Once you purchase a home warranty, the money that you pay in a monthly or annual premium will go into your account with the home warranty company. This helps you to save up and pay for the massive repair or replacement costs. But this is not exactly like a regular savings account because you will save money and the home warranty company will be able to negotiate the labor and parts at a discounted rate.

In that case, you must ensure that you choose a good home warranty company. One of the reputable home warranty companies is the Select Home Warranty. You can go through the Select Home Warranty reviews and have a glimpse of what you will be getting when you take this warranty coverage.

What Happens If You Have a Home Inspection?

With a home inspection, you will have a general idea of the appliances and systems that were in good working condition when you purchased the home. It is actually a good idea to have a home inspection regardless. Those in good working condition will qualify for a home warranty coverage. However, the plan you choose will determine what will be covered. Most home warranty coverage will repair and replace a system or appliance that is covered by your specific home warranty contract.

What Should You Do after The Wait Period is Over?

After the waiting period is over, 15 days, 30 days, or 6 months, you’ll be able to open a claim. Nonetheless, all the maintenance on your systems and appliances will be on you.

Suppose you open a claim on a failed appliance or system after the waiting period, a contractor will come to diagnose the issue. The aim here is to determine if your appliance or system qualifies for a home warranty coverage. It is also meant to check if the problem was caused by a pre-existing condition. If the diagnosis shows that the system or appliance was in a good working condition, the home warranty will be offered.

It is important to know the monthly maintenance for your home. The home warranty company should be able to give you the figures. Generally, for every $1 you spend on maintenance, it will help you save up to $100 in repairs. In other words, monthly maintenance is very important.

Why is there a Wait Period?

In most cases, the waiting period is because the home warranty company wants to protect themselves from paying out for the pre-existing conditions. That is why they will force you to wait. However, the waiting period is not a must in all situations. You might get the coverage instantly, especially if everything is working perfectly.

But when there is a breakdown in your system or appliance, you might have to wait 30 days on average. The main reason why people opt for taking a home warranty coverage is that they don’t want to pay more $2500 for repairing the repair or replacement of the system/appliances.

On the downside, the home warranty companies may stall the coverage for 15 to 30 days forcing you to make the repair immediately out of your own pocket because it is a critical repair.

If your refrigerator was broken, you’d just have to fix it or replace it without having to wait for the home warranty to kick in.

Does the Wait Period Apply to Everyone?

Like we have mentioned, the waiting period will not apply to everyone. Suppose you purchase the home warranty through a real estate transaction, the coverage will start on the day of closing. In other words, if you can, include the home warranty in your real estate transaction.

Before you take the home warranty coverage, remember to always look for and research the right home warranty company for your needs. A reputable company should offer you the deserved coverage without trying to evade paying it.

Severn Bank

Category: Local News, NEWS

About the Author - Stephanie Maris

Stefanie is a local blogger and social media content marketer from Maryland and most recently a wife and a mother. She has an unhealthy obsession with puns, sarcasm and caffeinated beverages.

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