The first thing you need to know is the difference between a home warranty and homeowners insurance.
- Homeowners insurance is essentially hazard insurance. This covers damages to your property as a result of external forces (i.e., flooding, fire, etc.)
- A home warranty, on the other hand, is not insurance but a service contract. It offers coverage for failures of your major systems and appliances due to normal wear and tear.
A home warranty is not a replacement for homeowners’ insurance, and neither is homeowners’ insurance a replacement for a home warranty—but they can work well together.
Now, why would you want a home warranty?
The answer is to potentially save you money in the long run. It can help in terms of budgeting for those times when a home’s system fails and lessen the financial burden of repair or replacement of a covered failure.
When you buy a home, there is a high likelihood that a major system or appliance will fail in the first year of home ownership. This could cost thousands in repair or replacement costs. A home warranty lessens the burden of the cost of large, unexpected repairs required when any covered systems fail due to normal wear and tear.
As with all contracts, it is vitally important that you thoroughly read and understand the details of your home warranty.
Home warranty companies generally cover most major systems and appliances. However, there are differences in base and optional coverages. Therefore it is crucial to read the contract and its terms and conditions.
Better education creates better understanding of your coverage and can help you avoid unmet expectations. If there is ever something you don’t understand, ask—there is always a customer service representative more than willing to answer your questions.
America’s Preferred Home Warranty (APHW) has three main differentials that set us apart from other home warranty companies: Control, Security, and Easy Claims.
- Homeowners are in control with America’s Preferred Home Warranty because they choose their own licensed contractor. This offers homeowners a third-party review of their failed item, as well as someone with zero contractual obligation to us—these contractors work with and for the homeowner.
- APHW gives homeowners security. If a homeowner adds our warranty when listing their home for sale, they receive coverage toward repairs or replacements of covered items for the duration of the listing (no expiration date), and our ListSecure® program provides them up to 2 years of post-sale legal protection should a legal dispute occur after the sale of the listing. Payment is not due until closing, and once it is paid, the home buyer receives a Supreme Home Warranty for 1 year.
- Our 3-step, easy claims process provides 24/7/365 person-to-person service.
Whenever you need us, we are here to help. All of us at America’s Preferred Home Warranty are looking forward to working with you! Please contact us at 1-800-648-5006 or visit www.APHW.com for more information.