Your Columbia SC home, no doubt, is one of your favorite possessions. But what happens if a pipe bursts or the water heater stops working? When you were a tenant you simply called the landlord. As a homeowner, now it's your responsibility. Enter the next best thing to a landlord… a home warranty.
Columbia SC Home: Peace of Mind
So just what is a home warranty? Think of a home warranty as insurance coverage for the cost to repair or replace just about any system in your home that may malfunction or wear out. Typical coverage includes heating and air conditioning systems, hot water heaters, certain electrical systems and appliances. Most home warranties cost between $300 and $900 annually.
The beauty of a home warranty is that if something goes wrong, you don't have to call various companies to get repair estimates. And you don't have to pay anything additional out of pocket to fix the issue or replace the equipment. All you have to do is call your home warranty company or enter a claim online. The company then contacts the technicians they work with and either send a repairman or replace the item in question. The only added expense you may have in the case of a brand new replacement would be a co-pay (or deductible) of around $50 per occurrence.
Is a Columbia SC home warranty right for you? The answer is maybe. Home warranties are usually a good idea for first-time homeowners like Gen Xers and Millennials. They're used to calling their landlord, and for the most part, have little or no experience in tackling home issues. In addition, these younger homeowners often work long hours and may not have the time to make lots of phone calls to get repair quotes. Plus, they can't very well take off from work to wait on the repairmen to show up.
When your home was inspected for lending purposes, you may remember the condition and life expectancy of some of your home's systems. Some appliances and systems begin to fail after 15-20 years. And, as luck would have it, when one item goes bad another one soon follows. That's a reason many homeowners welcome a home warranty – it's just one more form of insurance that provides them peace of mind.
Home warranties are also popular with investors or landlords who may have to deal with multiple potential problems in more than one rental property. Most investors have other businesses or other jobs, and the last thing they want to have to worry about is finding a plumber to repair a broken water pipe in the middle of the night.
In summary, home warranties can save home buyers time and money – especially in the first year of home ownership. One last tip, remember the older the home the more coverage you may need to have.
We've featured articles here on our site in the past about the pro's and con's of getting Columbia SC home warranties. But just recently, Consumer Reports released an article discussing why you should avoid Columbia SC home warranties, since even the best ones typically aren't worth the cost, and they advise putting your money in the bank instead.
The state of New Jersey recently filed a lawsuit against a home warranty company stating that warranty claims are denied because the company says the problem was pre-existing. Or, the claim is denied because the consumer can't prove that a broken item was properly maintained. They say they've seen consumers raise these issues in the past in connection with home warranties and other types of service contracts.
The state said the company, which sold coverage in at least 25 states, denied claims even when technicians said covered products had been property maintained or that a problem wasn't pre-existing or caused by a lack of maintenance. For some claims, the state said, the company demanded that customers provide years of maintenance records.
While the coverage required the company to replace products that couldn't be repaired, the state said the company offered consumers cash "buyouts" for hundreds of dollars less than it would cost to replace the item. And in some cases, local technicians dispatched to handle claims refused to respond, saying the company failed to pay them for their previous service.
Columbia SC Home Warranties Not Recommended By CR
Consumer Reports now recommends avoiding Columbia SC home warranties and service contracts, even those provided by companies with no record of engaging in any shenanigans. The reason is that coverage for contracts that cover homes and cars, for example, can cost hundreds of dollars.
Instead, CR suggests putting the money you otherwise would use to buy that service contract into a savings account or product repair-and-replacement fund.
Many credit card issuers automatically extend the manufacturer's warranty for an extra year or so for most products you buy using their card. Many companies also have goodwill programs and service campaigns that provide free or low-cost repairs or product replacement for items that fail in an unreasonably short time.
If an item falls under a safety-related defect, manufacturers generally must initiate recalls and provide free repairs, which are not even covered under Columbia SC home warranties.
Consumer Reports offers an "Extended Warranty Buying Guide" here.
While we don't necessarily endorse Consumer Reports in their stand against Columbia SC home warranties or companies, we felt obligated to advise you of their recommendation, and let you make your own intelligent decision in this matter.
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A Columbia SC home warranty may save you some money, but before you shell out money for one of these protection plans, read the fine print. Same goes for extended warranties, cell phone warranties, as well as pet insurance…
Video on Columbia SC Home Warranty and Other Protection Plans
Have you had a Columbia SC home warranty that actually paid off? We’d love to hear about your experience with your warranty. Comment below…