What to know about buying a home protection plan in Michigan
In the Wolverine state, there are many options available to homeowners for home protection plans. A home warranty is a type of home protection plan that functions as an extended warranty for your home's critical systems and appliances. This extended warranty protects your home well beyond the manufacturer's warranty and can be purchased at any time, no matter the age of the home.
After you sign a yearly service agreement, you can put in a claim any time after a 30-day waiting period. After that, you'll be asked to pay a service fee of $100-$150 for a visit from your service provider.
Prior to selecting a home warranty company, make sure you fully understand what a specific home warranty covers.
To help you better understand the warranty options available to Michigan homeowners, we have compiled many of the most frequently asked questions about purchasing a home warranty in Michigan.
What types of properties should have a home warranty in Michigan?
Several types of properties in Michigan can benefit from a home warranty. Single-family homes and multi-family units such as townhomes are eligible for home warranty coverage. New construction can also benefit greatly from a home warranty, since a manufacturer's warranty is often limited and difficult to use.
Modular and manufactured homes should have a home warranty in Michigan. However, homes on wheels cannot be covered by any home warranty company.
How much on average is a home warranty in Michigan and why?
The average cost for a home warranty in Michigan is $420-$745 a year. While you can opt for a less expensive basic plan, most homeowners choose a home warranty plan that covers air conditioning, along with the heating system and the electrical system.
Optional coverage for spas, pools and septic systems may also be added to your Michigan home warranty plan.
No matter which level of protection plan you choose, you will need to pay a deductible for each visit by a repair professional. Home warranty deductibles range from $100-$150 and can impact the monthly plan price. If you plan to use the warranty coverage more than twice annually, you are likely better off selecting a lower deductible to save money.
Who will benefit most from having a home warranty in Michigan?
Any homeowner who cannot afford to have a sudden, unexpected out-of-pocket expense will benefit from having a Michigan home warranty. The repair and replacement cost for a major appliance or system such as a heating and cooling system can be expensive. Even the replacement price for a water heater can be $1,000-$3,000.
While many people who purchase a newer home may believe they have no risk, they don't always understand the limitations of a manufacturer's warranty or homeowner's insurance. Home insurance generally covers loss related to theft, fire or extreme weather, but it doesn't cover normal wear for an appliance or system. And a manufacturer's warranty is usually limited to one year.
A home warranty plan can complement your home insurance by giving you additional coverage for everyday use of items like your HVAC, garbage disposal or oven.
How comprehensive should a home warranty in Michigan be?
Your Michigan home warranty should be as comprehensive as you desire. If your budget is limited, the base plan will help you get warranty coverage for your appliances. But if your house is more than 20 years old with older appliances and systems, the price of a warranty plan can pay for itself. The last thing you want is a $3,000 air conditioner replacement when you could have eliminated a large out-of-pocket payout for $15 per month.
How can you determine the best home warranty provider for your Michigan home?
The best home warranty provider for your Michigan home is the one that matches your needs to the level of service provided. As always, reviewing your homeowner’s insurance policy is prudent as is understanding your structural warranty on a new home, if applicable.
Home insurance can supplement home warranty coverage by protecting your home from events related to theft, fire or extreme weather. A home warranty plan differs in that it is protecting you against unknown risks related to normal daily use.
A structural warranty, often referred to as a 2-10 home warranty, covers the load-bearing structures within your home for a period of up to 10 years. Repairs and replacements due to everyday wear and tear would not be covered under your structural warranty.
The best home protection plan for you will be with a provider who provides great customer service, along with the home warranty coverage you need. Your contract will specify the service fee, coverage details and any exclusions and coverage caps.