How Does Home Repair Insurance Work?
Many times, we find small problems or breakdowns at home that we do not know how to address either due to lack of time or ignorance. You will be surprised to know that more than 70% of households have home insurance, but do you know what it covers? You probably do not know everything you can do with your home insurance. For your peace of mind, many of the home repairs that you take care of yourself may be covered by home insurance. Before we get into the details of how home repair insurance works, you need to know exactly what this is.
What is Home Repair or Home Warranty Insurance?
As noted, home repair insurance is also known as home warranty insurance. To get the most out of this aspect of your policy, you have to first solicit the professional service of a repair contractor to help you protect the essential household items that you use in your home, in the event that any of them breaks down for whatever reason. Most homeowners pay a premium each month to the insurance company, but in most cases, this does not cover any replacements or repairs of home systems and appliances. Usually, the homeowner has to pay the costs.
However, to save money, you can add home repair insurance as part of the contract. The insurance company would access its database of licensed service professionals to contract the repairs or replacement needed inside the home. This saves the homeowner time from having to conduct a search for a good technician in the area.
What is Covered?
Your home repair insurance has different types of coverage for varying household items or systems. However, you will usually have access to three different plans. You would have the option of choosing a plan where your home systems are covered. This would include plumbing and electrical systems. Another plan would cover your appliances and the next plan would cover everything. Some insurance companies may give you the option to choose combined plans while including additional choices for more coverage. However, the premium may be more expensive.
Some of the things covered may include:
- Roof Leakage
- HVAC system repair or replacement
- Electrical Damage
- Water Damage
- Breakage of Household Items
- Ductwork
- Toilet Repair
- Water Heater Repair or Replacement
- Doorbell Repair
- Plumbing Line
- Refrigerator Repair
- Dishwasher and Oven Repair
- Handyman Services
Electrical Damage
One fine day you come home after work with the intention of cooking something for the next day, and you find that you have electrical damage. There has been a short circuit in the network and your appliances have suffered the damages. The first thing that comes to your mind is to find out how much it can cost you to repair them or how much it could cost you to replace them with new appliances. Before you throw the house out the window, check the damages that your insurance covers.
If you have coverage included, you will have to take into account the specifications that your insurance company indicates in relation to damage coverage. However, keep in mind that, to use this coverage, electrical appliances will have to comply with the existing legal regulations, and it should not exceed an age that can vary from 5 to 10 years depending on the company. If you meet all the conditions, you can rest assured, as the insurance will cover everything.
Damage By Water
Knowing that there has been breakage in the water pipes and that it has caused considerable damage can be a real headache, but with patience and trust in your insurance, everything will be fixed as long as the damaged goods are insured. Coverage usually extends to fixed pipes inside and outside the home. However, it is best to check with your insurance company what the compensation is for locating and repairing damaged pipes and the damages produced, and if they have a limit. In addition, damage to heating appliances or household appliances connected to these pipes should also be covered.
Some of the Most Expensive Home Repairs
- HVAC Repairs ($180 - $580)
- Electrical Repairs ($150 - $5,000)
- Roof Repairs ($150 - $7,000)
- Deck Repairs ($10-$50/square foot)
- Foundation Repairs ($2000 - $7,500)
Breakages
More often than we would like, it happens that, by accident, a mirror or that beautiful glass table that we are so fond of breaks. Nevertheless, these breaks could also be covered by your home insurance. Yes, this includes crystals, mirrors, and stained glass, all of which would be covered before an accidental breakage. However, it does not stop there. If your induction hob or glass-ceramic breaks and is properly insured and installed, you are in luck, because they are also usually covered by insurance, as long as you have the coverage included in your contract.
Handyman at Home
You will love this service if you do not know how to do certain jobs in your home due to ignorance or lack of time. What jobs are we talking about? Here is a short list of what you should expect to be covered by home repair insurance:
Placement of sockets, wall lights, switches, lamps, changing fuses, bulbs, fluorescent lamps, or anything similar
Installing lamps, hanging curtains, pictures, clotheslines, mirrors, coat racks, or closet rods
Insulate windows, fix blinds, screw brackets, change handles or hinges, locks, or fix minor window problems
Repair of cabinets, drawers, shelves, or small repairs on faucets
Cleaning air conditioning filters, purging radiators, plugging small holes as a result of a drill, or silicone sealing in bathrooms.
DIY Coverage
The so-called DIY coverage is only offered for the performance of jobs specifically limited to the policy, that is, it only covers the performance of the jobs expressly reflected in the policy. Outside of that, another type of coverage would be applicable, which is normally home repair. Although there is a great coincidence of covered jobs in all companies, there may be differences between one and the other, so it will be necessary to look at the policy. Another feature of this DIY coverage is that they cover professional travel and labor, but not material cost. In addition, it should be noted that this coverage has a limitation of services since insurers only offer the possibility of performing them once or twice at most during the contracted year.
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The Expense
When you are looking for a home repair or home warranty insurance policy, you should consider several factors. You should pay no more than $70, depending on the insurer you choose and the plans offered. Your premium may depend on where the home is located and the size of the home. Even though you may have coverage for home repairs, the technician that does the job may charge a small service fee. If you pay a lower premium, you may end up paying a higher service fee and vice versa. If your policy has any exclusion to what the provider determines as ineligible for coverage, then you would have to take on some of those expenses. For example, if there is a $1,000 cap on your coverage, and the technician charges $1,500 to fix your plumbing line, you would have to pay the additional amount out of pocket.
Conclusion
If you are thinking about acquiring home repair insurance, it is best to choose the right insurer. To do so, conduct research on the insurers that offer this coverage, but first, get a few quotes, so you can make a definitive choice on what best suits your needs. Pay close attention to the type of coverage offered, the cost, the limitations, if any, the fees you have to pay, and anything else that you need to know. If you want to learn more about how all of this works, we invite you to visit the Goalry platform and go directly to the Insurry store. You will get as much detail as possible to help you in making an informed decision.