When dealing with any company that’s going to be taking money from you, it’s good to know who they answer to. That way, in the worst-case scenario, you know who they’re accountable to. Home warranty companies are absolutely not an exception to this rule. Making sure that the home warranty industry is regulated by somebody is important for keeping yourself protected from people that want to take your money without helping you.
How Home Warranty Companies Are Regulated
The entity that regulates home warranty companies can vary from state to state, but in most states, that person is the Commissioner of Insurance. Because the Commissioner of Insurance holds home warranty companies accountable, they are able to protect consumers from fraud, malpractice, or any other ways that the home warranty company can violate the rules set in place by the Commissioner of Insurance.
Who or What is the Commissioner of Insurance?
The commissioner of insurance is a position that can change a bit from state to state, but essentially that person is in charge of whatever body regulates insurance and related items in any given state. In some states, they’re the head of the department of insurance; in other states, it’s just called the Office of the Commissioner of Insurance. Regardless of what their office is called, their job duties are still the same. Protecting consumers from fraudulent insurance companies that only want to take money from the pockets of consumers without providing what they promised to, as well making sure that the insurance industry is well regulated so it can continue to run smoothly for everyone involved.
What is a Home Warranty?
A home warranty is a service contract that covers the repair or replacement of covered appliances or systems. For the most part, this includes things like water heaters, plumbing systems, electrical systems, HVAC systems, washers and dryers, and more. Units have to be well maintained, as home warranties will only cover repair or replacement of a broken down unit if the breakdown is caused by normal wear and tear.
There can be other limitations placed on home warranty plans. These limitations can include things like the size of the unit, number of units, and even how much the home warranty company will pay out when a unit breaks down. This is all very important information to know and will be included in the paperwork that you get when you sign up for your plan. If the company you’re speaking with doesn’t offer terms to your liking, it’s best practice to shop around until you can find a company that will meet your needs. There are plenty of home warranty companies out there. While you probably won’t find one that will cover anything other than mechanical failures caused by normal wear and tear, you can usually find one that will cover the full price of repair or replacement or won’t limit how many units or the size of units covered.
Home Warranties can Save you Money.
If you’re good at keeping your units well maintained, there’s a good chance that a home warranty can save you a good deal of money when your units start breaking down. Thanks to the Commissioner of Insurance, you can rest a little easier knowing that there’s someone in charge of making sure that your home warranty company will act ethically, and if they don’t, you know who to call. Many Americans already have their own home warranty because they’ve decided that the money it can save them is worth the annual premiums that they have to pay, and many home warranty companies will have your back when things start to break down.
