I'm a Buyer Specialist in the Phoenix, Arizona area, but I was born and raised in Shelby, Montana. I remember when I was a little girl and we got central air conditioning in the house my parents had recently purchased. Summertime in Montana is absolutely beautiful, but it does get hot, sometimes hovering around 100 degrees in the afternoons. The beauty of a Montana summer is that it always cools off in the evenings, so AC is a luxury instead of a necessity. You really can get through the hot afternoons with any combination of a window unit, a sprinkler to run through, and a nice cold drink. I'll never forget when I put the offer in on my first house in Mesa. My mother asked me if it had an air conditioner, and I'll admit that I rolled my eyes ever so slightly as I responded that every house in Arizona has AC. Here, it's a necessity, and it's also one of the major costs of home ownership, one that stings a lot more once a month in the summer when I cut a larger check to SRP than I do to the bank that holds my car loan.
As of January 2006, the US Government mandated that air conditioning units not meeting the 13 SEER rating would no longer be produced. As a homeowner and Realtor, I paid attention. A recent visit from a Home Warranty sales Rep to my office made me think about it again. Most home warranty companies took a lot of time structuring their coverage policies to accommodate the new regulations, because they anticipate their costs to skyrocket once replacement parts run out for existing units. The 13 SEER units are much more efficient and will reduce monthly cooling bills, but the cost to replace the existing unit is significant. The units themselves are expensive, and the renovations they may require push the costs even higher. The units are heavier and often will not be able to be placed in the same location as the old units. Hence, modifications must be made to the property to accommodate them. Outdoor areas, roofs, attics, trusses, and more will need to be changed. That spells major expenses for the homeowner.
So, what do home warranty companies cover, and how can you make sure you're covered? Every company has different programs, so read the fine print. They may cover the cost of the unit, but not the modifications that are required to make the 13 SEER fit in your house. Find out before you need the coverage. Also, when you buy a house, spend the extra money to have a licenced AC specialist inspect the unit. One caveat all home inspection companies have in their contracts is that they don't cover equipment that wasn't maintained by the former or present homeowner. If your unit breaks and the repair person comes out and discovers that it's filthy and hasn't been checked in years (and they can tell!) your claim most likely will be denied. You don't want to find out that you're not covered for upwards of $10,000 when it's 115 degrees outside in the afternoon and 100 in the middle of the night.
Here's some advice. When you choose a Realtor you can trust, ask them to get you information on several Home Warranty companies. Read the fine print in the brochures and call the company if you have any questions. Ask your agent if they have had clients who've had trouble with getting claims covered with different companies. When you find a house and have an accepted contract, get a specialist to come out and evaluate the unit. Make sure it's in good condition and has been maintained, and if it's not, make sure it's brought up to standard. That's why we have inspection periods. When you move into the house, change your filters and make sure that your unit is serviced twice a year. And renew your home warranty. Shop around for the company that has the best coverage for your needs. If your budget always seems tight, you might want to pay a higher annual premium to take advantage of the lower deductible. If you have savings and know that you'll always be able to cover a higher deductible, go with the lower annual premium. Your home is quite possibly the largest investment you'll ever make, so be proactive about taking care of it. You probably have health insurance and go to the doctor for preventive screenings take care of your body. You may have a warranty on your car, and you know that you need to get the oil changed and do other routine maintenance on it to keep it in the best shape possible. Make sure you're doing the same for your home.
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