A home warranty service contract isn’t an insurance policy that protects you from loss, but is meant instead to provide service, repair or replacement on a home’s appliances and major systems. There are many home warranty companies and they differ greatly. When making a decision whether to pay for a home warranty on your rental property, here are some items to consider:
- What does your contract cover and not cover? Read the fine print. Coverage for plumbing, for example, typically ends at your home’s foundation, so leaks or breakages beyond that would be your responsibility. “Pre-existing” problems typically aren’t covered, nor are breakdowns that result from poor maintenance or improper installation. Service is often denied on grounds of lack of maintenance or abnormal wear and tear. In addition, now that the price of air conditioning refrigerant is rising, many home warranties only cover $10 per pound of refrigerant cost, leaving the remainder per pound (an extra $50 per pound) for the home owner.
- How convenient is it to report a claim?
- Does the home warranty company have after hours and emergency reporting procedures?
- Once a claim is assigned to a service provider, can you easily contact that provider?
- What’s the response time once a service provider has been assigned a work order?
- What is your recourse if an assigned service provider fails to provide service?
- Does the service provider warranty their work? If so, for how long?
Efurd Properties strives to provide you, the owner, with the information you need to make good decisions. We make every effort to provide fast, efficient and cost-effective repairs for the proper maintenance of your investment property and to create goodwill and retention of tenancy.