Do Home Warranties Have a Waiting Period?

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Adding a home warranty policy is smart if you want to protect your home. Home warranties cover damages to your home’s major systems and appliances. One of the usual conditions of home warranties is a waiting period. Knowing when your coverage will begin is important if you are considering investing in a home warranty policy.

Despite the waiting period, home warranties are a good investment for homeowners. Home warranty policies typically cost $35 to $80 per month, depending on coverage level and location. Coverage usually lasts for one year, although two- and five-year options are available.

Understanding home warranties

A home warranty is a specific insurance policy that covers damages to your home’s major systems and appliances. Unlike a home insurance policy, warranties only typically cover natural wear and tear damages. 

Warranties typically cover the major systems in your home, including the electrical systems and wiring, HVAC systems, interior plumbing, and the water heater. Some appliances, like the air conditioner, dishwasher, and refrigerator, may also be covered. Some home warranty companies can have a serviceperson at your home the same day to assess the damage and determine whether the item needs to be repaired or replaced.

What is a home warranty waiting period?

Most home warranty providers include a mandatory waiting period in their policies. You’ll have to wait a specific amount of time before you can schedule a service call for your home. Depending on what kind of plan you enroll in, you’ll typically need to wait 30 to 60 days before you can use your home warranty. Porch Whole Home Warranty has a 30-day waiting period from when the contract is signed.

You may wonder why home warranties have a waiting period in the first place. Since home warranties are usually purchased when buying a home, the waiting period discourages people from misusing the home warranty policy to replace appliances or systems with pre-existing damages. If you had a home inspection, you should know of any repairs you must make to the property. 

If you already own the home and want to add home warranty coverage, continue with routine maintenance items. The pre-existing condition exclusion typically applies here as well. The home warranty can protect against future issues, but you’ll be responsible for repair and replacement costs during the waiting period. 

Read your home warranty policy carefully to understand your coverage. By knowing your waiting period, you’ll enjoy the full benefits of your home warranty policy. Remember that not all items are fully covered by a home warranty, but a home warranty policy can save you a decent chunk of change at the end of the day. 

If you are a homeowner or are planning to buy a home, consider adding a home warranty to your to-do list. It’s a financial safety net that can shield you from unforeseen expenses related to your home’s systems and components.

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