In the UK, the term house warranty refers to the collateral and insurance provided with the new house. Usually lasts for 10 years, new home warranties and insurance protect the first or subsequent buyers of new homes built against damage caused by structural defects that may arise as a result of poor workmanship during the development process.
NHBC has about 80% market share in the UK from the new home warranty market. Only NHBC listed builders can offer guaranteed products and NHBC checks the quality of buildings of new homes on offer with their warranty at key stages during the construction process.
In the United States, house warranty is a contractual agreement given to a homeowner by one of a number of different entity types such as a home builder, risk management group, or another. Home warranty industry was established in 1971 by American Home Shield. In the strictest legal sense, any warranty in the United States must comply with guidelines set at the state and federal levels. However, the words "house warranty" are not always used explicitly to mean legal guarantees are being submitted. In many cases, at least in the United States, a home warranty is not a guarantee at all, but a home service contract that covers the cost of repair and/or replacement of home appliances, main systems such as heating and cooling, and possibly other components of the house, structural or otherwise. Home service contracts generally include home systems such as home or electric pipes, and equipment such as dishwashers that fail from old age/normal wear. Coverage varies significantly across the entire home warranty company. The home warranty contract does not cover all home improvements.
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Coverage
The basic house security covers the main system of houses and certain equipment. Most companies include pipes, electricity, heating systems, as well as refrigerators, dishwashers, and microwave ovens. Some charge extra for equipment such as laundry and clothes dryers. The company's home warranty will pay a fee to repair or replace the system or equipment, provided it has been damaged from normal use and tear. If the system or tool fails due to unkempt (the water heater is not flushed or refrigerator evaporative rolls are not cleaned), most of the home warranty contracts will not cover the cost of repairing or replacing it. The house warranty is there to repair or replace old worn-out systems that have been well maintained by homeowners. Buyers should read the home warranty contract carefully to understand the coverage, limitations, and exceptions.
Limitations
Many home warranty companies have limitations in their contracts. These limits determine how much money a company will pay to fix or replace the system. Other non-monetary boundaries can determine how many units are covered or the size of the unit.
Some home warranty companies have a whole set of limits, in which everything in the contract is covered up to a certain amount of money. After the company pays the money, they will no longer pay for repairs and replacement of the house. Other home warranty companies have restrictions on certain items at home. In this contract, if there is no limit to the item, the item has no limit and the house warranty will pay as much as is necessary to repair or replace the system or tool. Homeowners should read the home warranty contract to know what limitations are set on the scope.
Exceptions
What parts of the house are exempt from coverage vary from company to company. Generally, home security does not cover coverage of systems and equipment that have been abused, intentionally damaged, or not treated. Some home warranty companies do not cover non-mechanical parts of the system or tool, such as the handle or buttons on the oven, for example. Another common thing for home warranties to exclude coverage on is a known condition.
Known Condition
Most home guarantee contracts will state that repair and replacement will not be covered if the issue is known before the insured date. This is sometimes referred to as a known condition. Most often, homeowners experience this problem when buying a home. After getting a home inspection, some property agents will mistakenly inform the buyer that any problems found in the home inspection will be covered with a home warranty. Conversely, if a house inspection states that something needs to be repaired or replaced before the closing date, most of the home warranty will not repair or replace it.
Country Rules and Regulations Regarding Home Guarantee
In some states, such as New Jersey for example, new home builders must provide home security for those who buy a home. Although the terminology is the same, this house warranty package is different from that offered to existing homeowners or through real estate transactions involving the purchase of existing homes. Coverage may be very different from other similar agreements.
Home warranty is one of several provisions for contracts between homeowners and companies that cover some of the costs associated with specific repair and replacement of household items. Related industries often use terms like housing service contract and tool warranty plans . Just as with home warranties in countries like Florida, contracts for residential services are organized in several countries such as Texas. It is a value for consumers to understand their country regulations for companies offering to provide maintenance or repair services and/or coverage for related costs as some companies may operate without proper licensing. Consumers can sometimes avoid falling victim to unlicensed companies in consultation with their country policies and other information regarding home warranties and similar services. In some cases, a list of licensed companies is currently available to consumers to check the applicable government agency websites.
In NSW (Australia), Home Owner's Warranty must be issued by your builder and an insurance certificate must be given to you if the employment value is more than $ 20,000.
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Using the Home Warranty
When a system or tool is damaged, a homeowner should contact the home warranty company. It is important for homeowners to call the company first, because some home security will not replace the homeowner for the money spent on repairs or replacements outside of the contract.
After determining whether the system or tool is covered by the contract, the company will send the contractor out of the local business. The homeowner will pay a pre-determined service call fee to the contractor, who will diagnose the problem with the failed system or tool. The contractor will get approval from the home warranty company to make improvements, depending on whether the diagnosis reveals that the failure is due to something covered by the contract. If the contractor receives approval from the home warranty company, they will complete the repair. During repair or replacement is not charged more than the limit stated in the contract, the home guarantee will pay the contractor for the remaining bill.
Problem with Business Model
Some homeowners may find that repair or replacement takes longer for their home. Because house collaterals order and purchase components at prices lower than retail prices, there will be a delay to get the parts needed to make repairs or replacements.
Contractor
The local contractor provided by the home warranty company to make a diagnosis and technical improvement is not an employee of the home warranty company. Contractors are paid by companies, but they are usually separate businesses that partner with companies to make service calls for their customers.
Controversy
Some common complaints that the home warranty client has:
- The warranty company rejects the claim by mentioning the negligence of the homeowner's maintenance
- The warranty company rejected the claim for "pre-existing issues"
- The warranty company always fixes the appliance even in such bad condition to replace
The company's home warranties reject the systematic denial and claim that the customer should pay attention to the contract. The warranty contract specifies that pre-existing conditions and problems arising from lack of proper maintenance and maintenance are not covered.
It is not uncommon to find companies that open a business for a short time and then disappear. About 20 companies out of business between 2013 and 2014. Buyers are encouraged to check the reviews and ratings of providers of companies that sell products.
References
Source of the article : Wikipedia
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