Home Service Contracts
A service contract for the home helps protect the homeowner from major home system and appliance repair and replacement expenditures, and eliminates the hassle and inconvenience of locating qualified repair contractors. Typical home service contracts cover repair or replacement of a home's major systems, such as heating, air conditioning, electrical and plumbing and major appliances for renewable one-year terms. With a home service contract, a homeowner has convenient and easy-to-use repair resources right at his or her fingertips and may pay only a small service fee for each repair visit.
Depending on the terms of the contract, the following systems and appliances can be covered in a home service contract:
|Washer / Dryer
||Oven / Stovetop / Microwave
||Garage Door Opener
||Pool and Spa Equipment
Where to Purchase a Service Contract
- Most service contracts for homes are sold by realtors or companies that specialize in home service contract sales and customer service.
- Service contacts for homes can be purchased at anytime during homeownership and are especially useful and popular during the buying and selling process.
- Service contracts are available for both new construction and previously-owned homes.
- The vast majority of service contracts are sold and/or administered by reputable, licensed companies that abide by current regulations, adhere to high principles of customer service, and are protected by financial reserves and/or insurance.
- A list of home service contract providers who are members of the Service Contract Industry Council, a non-profit trade association representing the service contract industry, is available here.
Benefits of a Home Service Contract
In addition to saving money on the lower cost of home repairs and replacements, and the timesavings and convenience of securing a pre-qualified tradesperson, home service contracts also offer the following benefits:
- Peace of mind that comes with knowing the home is protected from everyday breakdowns due defect or normal wear-and-tear during the contract term. In fact, contract holders on average utilize their home service contracts over 2 times every year
- A convenient 24 hour a day 800 number to request service. Expedited service is often provided for emergencies and just a phone call or mouse click away
- Endorsed by realtors across the U.S., home sellers use the home service contract to enhance the resale value of their home
- Transferability to a new owner
Consumers Tips for Purchasing and Utilizing Home Service Contracts
- Read the provisions carefully and become thoroughly familiar with all coverage, limitations and exclusions
- Carefully fulfill all contract responsibilities, such as regular filter changes. Just like you would never fail to change the oil or air filter on your car, ensure your heating/air conditioning filters are regularly changed to help reduce utility bills and enhance the longevity of the system.
- Keep the service contract paperwork, original receipt(s), and all maintenance records in a secure, easy-to-access location
- Utilize the service contract for all covered repairs to maximize the function, value and enjoyment of your home