A home warranty helps increase homeowners’ peace of mind, especially during emergency repairs. Studies show that having a home warranty lowers annual repair costs for average consumers by over $100.
The global market for home warranties has grown exponentially over recent years, to hundreds of billions of dollars. These policies provide coverage against faulty construction materials, defects, malfunctions and damage caused by natural disasters. They also include emergency plumbing repairs, pest control and accidental damage coverages.
Homeowners who purchase home warranties save hundreds of dollars annually on significant repairs because they receive premium service from licensed professionals who fix minor issues before they become serious. The most significant benefit of a home warranty isn’t necessarily fixing or replacing appliances; instead, it provides services 24/7 year round.
Technology advancements make it easier to pinpoint potential trouble areas and identify issues sooner than ever. A homeowner should always plan and ensure a qualified home warranty covers their systems.
What is a Global home warranty?
A global home warranty is insurance for those homeowners who purchase a product where the manufacturer guarantees its quality for an extended period. This means that if there is a problem with a particular appliance, the company will repair it under warranty, even if it was purchased after the manufacturer’s guarantee expires.
A great example would be a microwave oven. Suppose a consumer purchases a microwave oven from another company and experiences a defect within six months. In that case, they might be able to return the item to the retailer for reimbursement. Still, they wouldn’t be eligible for any warranty repairs since the microwave was purchased after the original manufacturer’s warranty expired.
As consumers become more aware of the benefits of a warranty, these warranties will continue to grow in popularity. In addition to providing peace of mind when a consumer purchases a product, some manufacturers also provide valuable incentives for consumers to buy a product with a warranty. For instance, some companies offer reduced monthly payments to consumers who sign up with them for credit card loyalty programs and purchase products that come with a manufacturer’s warranty. Others give consumers discounts on auto maintenance, lawn care, or energy bills. Some manufacturers include incentives such as gift cards or money for future purchases.
People spend more money on household items that carry a warranty than items without a warranty. Consumers that purchase appliances with a warranty typically view the product as a safe investment rather than a risky purchase. As long as the product performs as it should, consumers feel secure knowing that the manufacturer will fix the product if it breaks during the warranty period.
The popularity of global warranties appears to be growing across industries. According to data collected by Warranty Week, the number of warranty agreements reached $1 billion or more in 2012, a 10 per cent increase from 2011.
Advantages of a Global home warranty
A global home warranty allows you to protect your investment against common repairs such as plumbing, electrical & fire damage without worrying about where an issue arises.
A comprehensive global policy provides for repair, replacement, reinstatement of service or reimbursement for covered losses regardless of where the loss, injury or damage occurs. This includes out-of-country coverage anywhere in the world.
It also protects you against any future liability due to faulty materials used in building construction, poor maintenance or normal wear and tear. In addition, you may qualify for additional benefits, including enhanced protection against vandalism, theft, malicious acts or natural disasters.
The fact remains that most homeowners insurance policies do not cover these types of risks. So we recommend you consider adding a global home warranty to your existing homeowner’s insurance plan.
The key objective of a global home warranty program is to provide you with peace of mind knowing that the costs associated with repairing or replacing damaged property are protected.
Home warranties are a great way to ensure that your home continues to operate safely and efficiently while saving money on major repairs to your home.
Disadvantages of a Global home warranty
A global home warranty could be an excellent option for homeowners if appropriately used. This type of insurance typically covers property damage and loss of personal possessions inside the home.
The disadvantage of a worldwide home warranty is that there is often little way to tell how much coverage there is. If there isn’t adequate coverage in certain areas, it may mean you won’t receive any help when disaster strikes.
Some companies provide local home warranties that cover only a few states or even a single city. These policies tend to be more limited in scope, but they offer excellent protection against fire, flood, theft and other problems in these regions.
There also might come a time when you’ll need to pay out-of-pocket for repairs. For example, if you live in a state that doesn’t require water backup alarms, you will probably be required to pay for them separately.