5 Facts About Home Warranties Homeowners Should Know

Oftentimes the first time homeowners review the intricate complexities of their house warranty coverage is when they discover a major problem, despite having the policy since they purchased the home. Unfortunately, because this happens more often than most people understand, it is imperative for homeowners to review their coverage fully. Are home warranties worth it? Warranties not only vary by the company issuing them but also by the province they're issued in. To avoid unnecessary confusion, find out more about how they work so there are fewer unpleasant surprises down the line.

Not Every Part of the Property Is Covered

Not every part of your property may be covered, as certain housing warranty companies will only cover the building envelope (the physical components that separate the outside of the home from the interior). So if a pipe happens to burst on the outskirts of the home, this event may not be covered. If the pipe burst was due to faulty construction, a homeowner typically can't go to their home insurance carrier for help. This may mean they're entirely out of luck for any type of financial consideration.

The Process Is Lengthy

Dealing with a warranty can be a time-consuming process, as getting repairs covered isn't just a matter of consulting with a single party. Even if it seems clear that the pipe broke due to faulty construction and it's covered under the warranty, a homeowner will first need to call the warranty company to fully explain the situation. Once the warranty company has the claim, they'll hire a third party to verify why the event occurred. This party will need to agree with the homeowner for the warranty company to cover the claim. As homeowners might imagine, this whole process can take some time.

Funding Limits Vary by Province

Homeowners should learn more about how their province rules work before accepting a warranty. How does a home warranty work by province? Those in Manitoba will usually get $50,000 to fix potential issues, but buyers in Ontario will get up to $300,000. These limits are usually imposed by local authorities, so it helps to understand the specifics in case homeowners want to purchase additional outside protection. A homeowners warranty is not technically required in certain parts of Canada, but local laws will impose penalties on the builders who do not offer them.

Rules Vary by Province Too

Warranties may cover more than just shoddy workmanship, depending on the location of the home. For example, Alberta residents may enjoy financial protection if the construction crew has to drastically delay their original schedule. In addition, the time limits vary for the warranty as well. Those in Ontario typically receive up to two years of protection against worker mistakes but up to 10 years of total coverage on the general structure.

Homeowners Have Options

Remember that you have options when asking yourself "should I get a home warranty?" The best way to get the right protection is to ask questions and do research on the builders. Hopefully, a Leduc homeowner hasn't chosen someone with a reputation for cutting corners but if for any reason they did, they purchase additional coverage through a third party. This move gives owners general peace of mind and financial help when they need it the most. Resale homes will include the original warranties for the home, but the time limits will not extend for any reason for the new buyers unless specific arrangements are made.

Home warranties can be complicated depending on the builders, warranty company, and the province of the home buyer. Some of the more common problems can be avoided by knowing the reputation of the builder and the rules of the warranty. Talking to a real estate agent or home warranty professional can be an excellent way to mitigate confusion and ensure that homeowners are getting the additional protection beyond their standard home insurance.