Comprehensive Service Warranty Coverage: The Ultimate Defense for Home Owners

Published Jan 19, 23
8 min read

What is a home warranty?

A home warranty is a type of service agreement that will pay for the cost of fixing or replacing your home's systems and appliances if they fail because of normal wear and tear. Home warranties are not the same as insurance for your home, which protects your home's structure against natural disasters and theft, but instead ensure the security of your home's systems as well as appliances. All kinds of homes are eligible to be covered by home warranties. They can reduce the cost of repairs or replacements and make it feasible for landlords of both types, new and old. The service fee is the amount paid to the home warranty provider for each claim. Most providers do provide coverage for older homes, however certain ones do not provide coverage for home appliances that have preexisting issues.

What are the advantages of using a home warranty for rental properties?

1. Protection against high repair costs

A home warranty can be used to shield rental properties from high repair costs. It gives quick service, ease of use, and zero service charges. This reduces the amount of time and expense needed to repair your home and also provide financial protection for unexpected repairs and replacements. Furthermore, the coverage of regular maintenance aids in increasing tenant and client retention, since tenants can request service without landlord approval and the covered appliances and systems are repaired quickly, reducing the risk of negative reviews. This can help landlords save money while charging more for rent, thus putting more money in their pockets.

2. Protection for household appliances that are commonplace

What appliances are covered under a home warranty for rental properties ? And what exactly are they covered for? (Extended list) Refrigerators, dishwashers dryers, washers for clothes, trash compactors, ranges/ cooktopsand ovens, microwaves with built-in ovens with built-in food centers heating systems, water heaters, air conditioning electrical systems, garbage disposals, smoke detectors, central vacuums, plumbing systems, doorbells, exhaust and ceiling fans, septic tank, sump pump spa, pool and garage door openers.

3. You can rest assured that repairs will be made

Repairs made under the warranty of a home for rental properties provides landlords with numerous benefits. Landlords do not have to pay cash on demand for maintenance and repairs. Additionally, a home warranty plan simplifies the home repair procedure for all involved by sending a claim to the warranty provider, who then sends a technician to the rental property to fix the issue. Furthermore, because many repairs and replacements are covered and resolved quickly and efficiently, property management companies can anticipate a reduction in charges for contractors from third parties as well as insurance costs. The home warranty offered for rental homes will help clients and tenants keep their clients by solving the most common reason for tenants to quit: maintenance issues. Tenants can request service from their landlords without needing to get approval. This lets them repair their appliances and systems swiftly. This also decreases the chance of tenants complaining about the service. Home warranties provide landlords with a cost-effective and efficient solution to repair rental properties.

4. It helps you save time as well as making it simple to locate a contractor.

Utilizing a home warranty on rental properties can reduce time and stress when trying to find a contractor. Instead of having to search the web for a reliable contractor an instant, landlords could file a claim through their home warranty provider. They will send someone to their rental home to fix the issue as fast as they can. This is a lot easier than having to reach out to numerous contractors to find the best contractor.

Property managers can cut down on time and stress by hiring a trusted vendor to manage the property. They are familiar with the prices, the work, and background of the vendor. This means that they don't have to spend time researching and selecting the best contractor for the job. Furthermore, contractors who have been trained will be more tolerant and ethical towards tenants. This is important to ensure that tenants are satisfied.

Sometimes, it may take some time to receive service from a home warranty provider. Tenants can become dissatisfied if they are not satisfied with the speed with the time repairs are made. This causes discontent. Property managers are intermediaries between the tenants, the home warranty company, and property owners.

In the end, a home warranty for rental properties can be beneficial as it can save time and hassle of finding contractors. Property managers can send trusted contractors they have already worked with to homes they manage, while homeowners can file an inquiry to their home warranty provider and have the issue resolved in no time.

5. Budget for repairs

A home warranty that can pay for repairs and replacements for appliances and mechanical systems in your home can help budget operating expenses easier for landlords of rental properties. The home warranty plan ensures that repairs are more predictable and can help tenants feel more comfortable. It also improves the bottom line. The home warranty plan is convenient as it is a one-stop source for all household maintenance and replacement requirements. It is also a way to not change money when making service calls. In addition the home warranty could help reduce the cost of homeowner's insurance by covering all or a large portion of the expense of repairing and replacing aging or malfunctioning appliances and systems.

6. Protection against landlord liability

A home warranty for landlords protects against landlord liability. It covers expert repairs for appliances and systems that are failing because of normal wear and tear or old age. This helps reduce the risk of lawsuits for hability from tenants, as the repair and replacement of appliances and systems are taken care of promptly. Repairs covered by the warranty also decrease the requirement for approval from landlords and disputes to be resolved and reduces the chance of liability for landlords. Additionally, having a home warranty in place can serve as an additional level of financial security since it is tax-deductible and can help pay for rental costs.

7. The ability to select between various warranty providers

The selection of a warranty company for your home for a rental property isn't an easy task. You should consider cost as well as the reputation of the company, its customer service system, and many other aspects. We recommend looking at the available service plans and add-ons, depth of coverage the plan's cost, its brand reputation, customer support infrastructure, as well as additional options when choosing the right home warranty company. Also, consider whether you can choose your own contractor, and then upgrade the coverage you have. Additionally, consider how simple it is to transfer your policy from one owner to another.

Based on our research, plan coverage is the one that should be considered most important in the customer support department as the second most significant factor. Industry reputation, plan availability as well as additional features should be rated equally as well as price. Price should not be the primary base for selecting the best home warranty company to meet your home's requirements.

For instance, if your rental features a saltwater swimming pool, appliances from the pro-series, or a reverse osmosis system, Liberty Home Guard has a collection of additional features that might be appealing to you. If you're not available to attend to repairs within the typical 30 days of the workmanship guarantee, AFC Home Club offers the option of a plan-length warranty that can provide additional protection. HomeServe's specialized plans are a good alternative for those concerned about the utility lines of their rental property. American Home Shield is the best choice for those who prefer more coverage.

Ultimately, we recommend requesting a quote from at least three home warranty providers and thoroughly reviewing the policy's terms to ensure you are aware of the limitations and exclusions from the policies. By doing this, you can make an informed choice and choose the best home warranty provider for your rental property.

8. The ability to benefit from discounts and other incentives

Utilizing a home warranty for rental properties can to save money in two ways. In the first place, these plans give you a more convenient and affordable solution to fix important household appliances and systems as they inevitably break down. This could help landlords save money on regular repairs. Another advantage is that the cost of premiums and service charges of the home warranty plan could be claimed on a tax return as an operating expense, dependent on the landlord's registration. This could decrease their total income and tax burden.

9. Ability to submit and track repair claims online

Warranty plans for home owners can be incredibly helpful for rental properties by making repairs easier. If an item covered by the warranty fails or breaks and needs to be repaired, landlords need to submit a claim to their warranty provider. The warranty provider will send an expert to the rental property to address the problem as quickly as possible, which saves landlords the hassle in searching for a trustworthy contractor at the shortest notice. The Home Warranty plans permit landlords to make sure that their rental property is properly taken care of by providing rapid service and ease of use.

10. Greater tenant satisfaction

Using a HomePRO Warranty can provide many benefits to tenants with regards to customer service and satisfaction. The HomePRO Warranty reduces service calls since tenants can make requests directly without waiting for the approval of the landlord. This helps to improve the relationship between landlord and tenant. Furthermore, HomePRO Warranty eliminates the requirement for landlords to deal with multiple vendors, as the warranty includes repairs and replacements of various appliances and systems. As a result tenants have the assurance that their needs will be met quickly and effectively. The home warranty, which may raise the rental value of the home and is a good option for landlords who want to earn more each month.