Suppose someone is considering buying a home, and the furnace works but is getting on in years. The seller is not required to replace it, but the potential buyer is leery about taking on a home in which the furnace might be on its last legs.That is where home warranties, also called home service contracts, come into play. These guarantees are designed to protect a homeowner from unexpected repair costs for major appliances like refrigerators, washers, and dryers. The home service contract is the ideal solution, and the new homeowner has the option of extending it beyond that first year.A home service contract or warranty, which usually lasts one year, offers repairs or replacements for the major appliances and systems in a home. While coverage options vary, a home service contract usually includes interior plumbing, heating and electrical systems, water heaters, ductwork, dishwashers, stoves, washer/dryer, pool equipment, refrigerators, air-conditioning, garage-door openers, garbage disposals, and spa equipment.

Typically, these contracts cost between $200 and $600. The cost varies by state and depends on the size and age of the property and the amount of coverage chosen.Be careful, however, not to confuse these home warranties with the home warranty offered by builders, which guarantee the quality of the new-home construction itself, not the systems or appliances inside. air handling unit indiaWhile your home service contract will cover those appliances, most don't cover home foundations, walls, structures, or finish.ac split units pricesWhile these contracts may seem like the ideal option when buying an older home, homeowners need to carefully read the fine print to avoid some loopholes—home service contracts are very specific.european style ac unitHere are some things to watch out for, and what not to do because it could void your coverage:• A mechanical failure that existed before the agreement was effective.

Say, for instance, that the air conditioning hasn't worked for five years. Summer comes around and the new homeowner tries to start it, only to realize he's out of luck. In this case, repairs or replacement might not be covered. (Several firms do offer different levels of coverage that could cover your home's preexisting conditions.)• A failure not caused by normal wear and tear. If the family pet is using refrigerator coils as a chew toy, or if a raccoon has taken up residence in the air-conditioning unit, those repairs would not be covered.• Inspectors finding asbestos, hazardous or toxic materials, or mold.• Faulty workmanship on your appliances. Check with the Better Business Bureau before choosing one to make sure it is a reputable company. Do not tackle any job on your own that you are not qualified for.• An appliance has clearly been mistreated.• Calling a repairman before the home warranty company gives approval for a repair or replacement. Always consult with the warranty company first.• Changing the property use from residential to commercial.

If the homeowner decides to convert the home into a beauty salon, the contract would be voided.Follow these tips to get the most out of your home service contract:• Make sure all appliances are installed properly, including those installed by a trained technician. Again, check with the Better Business Bureau if you are not sure about a technician.• Take care of routine maintenance. Don't let rust run wild. An annual maintenance plan for air conditioning and heating is a good idea; you can avoid the rush in summer and winter when everyone else needs help.• Make sure multiple appliances are covered. Yes, your kitchen refrigerator is covered, but what about the backup fridge in the garage?• Find a quality home inspector. This person will make sure everything is running the way it should before you finalize the home purchase.• If you have a problem, remember to call your home service contract company before you call a contractor. The warranty company will not pay for a claim unless you call them first.

They may suggest a contractor or let you choose your own, depending on the company policy.• If a claim is denied, don't take "no" for an answer. Carefully review your policy and then ask to talk to a manager. Find out what has happened with similar situations to get the problem resolved.Visit the National Home Service Contract Association for a complete list of all registered companies. The website also includes a consumer section for fraud reports or complaints.GARDNER, Kan. -- It's 5 p.m. and the Narine family would love to be anywhere but inside their Gardner home. Even on a day that topped 97 degrees, the Narines insist it still feels cooler outside than inside ever since their central air system stopped working. Katie Narine blames her home warranty company, Old Republic Home Protection.We are reasonable people, but this has been a very terrible experience," Narine said. It was June 14 that the Narines first realized that the brand new air conditioner their Old Republic warranty paid for in May stopped working the week after they turned it on.

When the company Old Republic hired to install the unit was unable to fix the problem, the Narines called Old Republic for help. Old Republic told the Narines they needed to contact the manufacturer to find out why the brand new unit wasn't working. "So we did that," Narine said. "They come out and said `no it's been installed completely wrong. There are missing parts.'" Narine dutifully reported back to Old Republic, even sending the warranty company written proof of the problem. But Old Republic insisted on having its own contractor also inspect the unit. However, that contractor never showed, much to the Narines' disgust as they sweat in their hot home as the days ticked by. "I just want Old Republic to make it right," said Narine, who has had to spend hundreds of dollars on fans and a window unit to keep her family cool. The Narines feel the problem is completely Old Republics since they chose the original contractor that installed the bad unit. Plus the Narines are frustrated not to keep more timely help from Old Republic -- a service which costs them $50 a month, plus service fees.

The fee on the air conditioner was more than $300. FOX 4 Problem Solvers has had complaints about home warranty companies before from unhappy customers who either are refused repairs or can't get their warranty company to use a competent contractor. However, this was our first complaint involving Old Republic. The company has a good reputation in the home warranty business. Still the Narines had been stuck in the heat more than three weeks waiting for this problem to be solved. Problem Solvers called Old Republic and talked to an employee promising to solve the problem. That same day, Old Republic sent out a new contractor to verify the problem with the air conditioner. And the next day, that same contractor was back on the job installing a brand new unit. Here's some advice before hiring a home warranty company: Check out their reputation online, look at multiple companies and compare services and prices. But before signing a contract, do the math. If you factor in the monthly charge, plus service fees, you may find you're better off banking that money and using it to hire your own repair people.