Want to know the impact and importance of pre-existing conditions on your home warranty plan? That is what we talk about for making a secure investment.
One of the biggest investments you will ever make is buying a new home. That will take a lot out of you, physically and financially. But the reason why you would want to go through this hectic home-buying process is to enjoy the perks that come with homeownership.
You can personalize your home by buying your preferred appliances and installing the systems you want. There will be no need to take approval from a landlord before making the changes. That is because you are the landlord, and your responsibilities have just increased
While a tenant leaves all the home repair and maintenance to the landlord, you, as the homeowner, will be responsible for ensuring your home components are working fine. That includes finding a reliable technician to offer services and bearing the cost as well.
But what if we said you don’t have to? Just like a tenant, what if you had the option to leave all home repairs and maintenance to someone else? That is not just wishful thinking. You can experience this when opting a home warranty coverage.
This is the contract between homeowners and the home warranty coverage provider to manage all the home repairs and maintenance. Home warranty coverage can help save you a lot of money and hectic situations.
There is a fixed service fee for every claim you make. This will be significantly less than what you would have had to pay without home coverage.
Additionally, you can avoid the frustration of finding technicians you can trust to provide expert services. You will have access to licensed and proven service professionals provided by home warranty providers.
So, if there is a pipe leakage, HVAC malfunction, or some other issue and you have the coverage for it, all you need to do is file a claim. Home warranty coverage provider will ensure that the home component is back to the pre-existing condition before the wear and tear.
Are you thinking, “What will happen if the home appliance or system has already defected before coverage?” That is what you call a pre-existing condition. Generally, pre-existing conditions are categorized into two types.
These defects are detected during the visual home inspection or a mechanical test. The homeowner is aware of these issues when buying the home and does not take action to fix them.
If the home inspections and mechanical tests fail to detect the pre-existing condition issues, they are called unknown pre-existing conditions. Since these home repair and maintenance issues were not highlighted, the homeowner could not do anything to fix them.
Most home warranty coverage providers would not want to approve coverage for a home component that is already defective.
So, is it really a good thing if the home warranty company doesn't require a home inspection before providing coverage? Well, you might want to reconsider. This could potentially be a strategy employed by the home warranty company to leverage the pre-existing condition clause to its advantage.
For example, suppose your roof is leaking, and it is covered in your home warranty plan. When you file a claim, the home warranty company can turn the table and deny your claim with the reason, “The pre-existing condition of the roof was not good.”
If that occurs, you will find yourself caught between a rock and a hard place without any documented proof. To avoid reaching such a situation and having to relinquish your claim, you have the option to opt for a third-party home inspection beforehand.
When the home inspection is complete, and you find some defects, make sure you have them fixed before buying a home warranty coverage.
Now for the all-important question, “What can I do to avoid complications of a pre-existing condition?” This is information that would be valuable for a first-time or new home buyer, as they would aim to steer clear of opting for a home warranty coverage that could potentially reject their claims.
Here are some of the steps you can take to ensure the home warranty coverage provider does not outsmart you.
You can’t just go for any home inspector you can find. It is good to have options and choose a reliable home inspector for a thorough report. This will tell you about the things you want to work on before opting for home warranty coverage.
Pro Tip
Most home warranty companies want a home inspection report 60 days prior to the coverage begins.
When purchasing a home warranty, make sure you disclose all the detail about your home’s pre-existing conditions. Hiding a known pre-existing condition can lead to complications and disputes when filing a claim.
Keep a record of all home repairs and maintenance after the home inspection. This will be proof that you have fixed the problems mentioned in the home inspection report.
After you find an issue with a covered home component, make sure to file a claim without wasting time. The longer you take to file a claim, the more chances there will be that the claim will be denied.
Make sure you read all the clauses and terms mentioned in the home warranty coverage contract about the pre-existing conditions. This will help you understand things like the limitations, exclusions, waiting period, and more.
Learn More: Choose the Real Estate Service You Want
These were the influencing factors about pre-existing conditions when choosing a home warranty coverage. We started off by understanding the types of pre-existing conditions, followed by the importance of home inspection. In the end, we have suggestions you want to see.
After you are done, now is the time to find a home warranty provider. For options, check out the home warranty coverage agents and companies listed on HAR.com. These are professionals from different parts of the country waiting to be your next home warranty providers.
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