When you purchase a new home in Texas, you may be offered a residential service contract, also known as a home warranty. This contract provides coverage for repair and replacement of certain home systems and appliances. But what exactly is a residential service contract, and how does it work?
Simply put, a residential service contract is a legal agreement between a homeowner and a warranty company. The contract covers the repair or replacement of specific items in the home, such as plumbing, electrical, heating, and air conditioning systems, as well as home appliances like refrigerators, ovens, and washers and dryers.
The cost of a residential service contract can vary depending on the level of coverage and the size of your home, but typically ranges from a few hundred to a few thousand dollars per year. Some contracts require a deductible or service fee for each repair or replacement, while others do not.
When you purchase a residential service contract, you will receive a booklet detailing the coverage and limitations of the contract. It is important to read this carefully to understand what is and is not covered under the plan. Additionally, before you sign a contract, you should research the warranty company and read reviews to ensure they have a good reputation for customer service and timely repairs.
If a covered item in your home breaks down or stops working, you can contact your warranty company to file a claim. They will send a licensed technician to your home to assess the problem and determine if it is covered under your contract. If it is, the technician will either repair or replace the item at no additional cost to you.
Residential service contracts can provide peace of mind to homeowners, especially those who are purchasing an older home with older systems and appliances. However, it is important to note that these contracts do not cover everything in your home, and some items may be excluded from coverage.
In summary, a residential service contract in Texas is a legal agreement between a homeowner and a warranty company that provides coverage for repair and replacement of certain home systems and appliances. Before purchasing a contract, it is important to read the coverage details and research the warranty company to ensure they have a good reputation for customer service and timely repairs.