The home service agreement, also known as the home warranty contract is basically a type of agreement, which covers a few repairs and replacements on the systems in any residential property, generally for a year. On the basis of the service contract, this agreement may cover the structural components, plumbing, heating, cooling or air conditioning system and appliances or electrical systems in any home. But one thing to remember is that the service agreement is not insurance or not replacement for insurance as well. In fact, the homeowner’s insurance covers things like damaging to the structure of the property or the personal property of the homeowner. On the other hand, the service agreement covers a few agreements of the home while these fail because of the normal wear and tear.
When do you need the home service agreement?
Heating and air conditioning systems of the homes, which are annually maintained experience comparatively fewer breakdowns. Therefore the maintained systems mainly work at the peak efficiency every year in and out. Tuning up these things are really helpful in decreasing the total amount of the kilowatt hours used and fewer kilowatts is equal to lower electricity bills. So, by choosing to get a home service agreement, you will be able to protect all the necessary equipments of your home.
Things that you should know about these agreements:
The home service agreement is not valid without licenses, and therefore all the companies that sell this type of agreement should be licensed by the commission. So, you will find the list of all the licensed home service agreements in Albuquerque companies on the web. Besides, the real estate sales agent must be familiar with how this type of agreement works and things that this agreement covers. Usually, this type of agreement only covers the items, which are in proper working order while the agreement is being purchased.
Moreover, a number of covered items have some limitations of coverage and therefore the agreement may not cover the total cost of required repairs. Therefore, a broker or sales agent should not represent ever that this type of agreement covers almost anything or that this type of agreement works as a substitute for negotiating the required repairs with any seller.
Here the cost and coverage often varies by the company, therefore you should always compare different companies before making a decision whether to purchase the agreement or not.