Insurance Tidbits:

Home Warranty Plans…A Good Value?

It’s 8:00 AM on a Sunday morning and you open your refrigerator to find it warm inside.   Your first thought is that a repair may cost more than $200.  Or worse…you need to replace the refrigerator which could cost more than $1,000.  Who do you call to get an honest assessment of the problem?

A home warranty plan is your answer to this difficult situation.  These plans provide protection for many of the appliances in your home.  Most home warranty companies offer a 24 hour 7 day per week toll-free number to request service.  Upon your call, a local, pre-screened, professional will be sent to your home to evaluate the problem. 

Regardless of the severity of the repair, you will only be charged a $40 - $50 trade service fee for all the work performed, including all parts and labor.   If your appliance is beyond repair, home warranty plans have provisions to provide for replacement of the item at no additional charge to you.   

Most companies offer different levels of protection.  Base plans include the standard appliances in your home.  These policies usually range between $180 and $225 per year.  More comprehensive plans to cover electrical systems, plumbing, and air conditioning systems are available for less than $400 per year.

Compared to the option of buying extended warranties for all of your appliances, a home warranty policy is a much better value.  Most extended warranties cover the appliance for the first couple of years, when it is least likely to break down.  Home warranty plans provide coverage regardless of the age of the appliance. 

With each passing year, major home systems and appliances are likely to need repair or replacement more frequently.  A home warranty plan is an excellent way to ensure you get a professional service person while eliminating huge out of pocket expenses for repairs or replacement.

Jon Gardner, CPCU is an Insurance Agent with Farmers Insurance who offers complimentary insurance evaluations.  His office is located at 27907 Smyth Dr., Suite #101 in Valencia.  He can be reached at (661) 775-9244