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What Homeowners’ Insurance Does Not Cover

After all of the extra costs that come with owning a home, you’d think there would be nothing to worry about. You pay to apply for a mortgage, pay the mortgage, pay your utilities, property taxes and homeowners’ insurance, what else could there be? Well, don’t be so certain these fees cover you completely. Do you even know what your taxes pay for, and do you really know what homeowners’ insurance does?

With homeowners’ insurance, you may be covered if your house burns down. It’s a horrible thought, but it does happen. Your homeowners’ insurance will also pay for other natural disaster relief and perhaps break-ins. What it does not pay for is what may be the most practical and every day needs in your home.

Homeowners’ insurance does not pay nor reimburse you for the breakdown, malfunction, dysfunction or abnormality of appliances and systems in your home. Think air conditioning, sprinklers, refrigerators, washers and dryers. The performance of these household devices is important to living in a comfortable environment. Sadly, homeowners’ insurance will not buy you a new dishwasher if yours breaks or gets too old. It also will not pay for that broken handle on the oven or that leaky faucet.

So, if homeowners’ insurance doesn’t help me cover all of my appliances and systems, than what does? Do I have to pay for it all out of pocket? The answer is no, you do not have to pay for it all. If you buy a home warranty protection plan, much like one you may buy for a computer or electronic component, you will be covered for these kinds of problems and will not have to pay for them every time.

Keep in mind that even if you have a warranty on each separate appliance or system, those warranties expire. Home warranties will cover you no matter how old anything is, and no matter how long you have used or owned it.

Home warranty plans usually cover heating systems and duct work, plumbing, electrical systems, and often dishwashers, water heaters, range, oven and stove. They may also cover other unspecified appliances.

You can receive different levels of coverage according to the premium you pay. This is the amount you pay on an annual basis to have the protection plan. The service should be provided 24 hours a day, seven days a week, and a professional service contractor will come to your home in a timely manner. You may pay a small service fee, kind of like a tip for the service person, and you will be advised on any new parts or components your appliance or system may need.

A home warranty protection plan is great because it covers everything in your home that homeowners’ insurance does not cover, it is convenient as opposed to visiting all of the retail locations or businesses where the appliance or system came from, it will help sell your home should that time come, it will protect older appliances so they “live” longer, and there are no inspections required to obtain the plan.

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