Can you do your own home insurance repairs? This is a question that many people ask themselves, and the answer is not always clear. Home insurance repairs can be expensive, and it may seem like it would be cheaper to do them yourself. However, there are a few things you need to consider before making this decision.
In this article, we will discuss the differences between home insurance and home repair insurance (home warranty), and we will help you decide whether or not doing the repairs yourself is a good idea.
What Is Home Repair Insurance?
Also known as home maintenance insurance or home warranty, home repair insurance is a type of insurance that covers the cost of repairing or replacing appliances and systems in your home. Home repair insurance is different from your typical homeowner insurance, which covers damage to your home caused by events like fire, theft, or vandalism.
In most situations, the coverage provided by home maintenance insurance is not covered under a normal homeowners insurance policy. If your air conditioner breaks down due to a mechanical issue, for example, your home maintenance insurance would cover the expense, whereas your homeowner’s insurance wouldn’t.
Many home repair insurance companies provide extensive coverage. The level of protection you receive from your home warranty depends on the exact policy type. Here are a few examples of the most frequently covered items:
- Home mechanical items, such as ceiling fans.
- Indoor plumbing, including drains, sinks, faucets, and pipes.
- The majority of home appliances, like microwaves, washing machines, refrigerators, washers, dryers, and dishwashers.
- Heating and cooling units, like AC units and furnaces.
The cost of repair or replacement for your property might be above the limit of your insurance policy. For example, a company may set a $1,500 limit on washing machines. As a result, even if your machine is worth more, your coverage for a washing machine repair or replacement can’t exceed $1,500. If you have low limits, you’ll have to pay the difference between what’s covered by your policy and the cost of the repairs or replacement. Most insurers offer different rate restrictions for various items, so it’s important to read the fine print before purchasing a policy.
Can You Do Your Own Home Insurance Repairs?
Most of the time, your insurance company will allow you to handle your own home insurance claims since it determines how much they’ll pay to restore your property and when they’ll pay. The insurer is more inclined to let you proceed if the task is simple, such as cleaning up trash, rather than if it’s complex, like plumbing. There are a couple of other factors to consider as well:
- Legality: There’s also the question of whether the repairs are legal. Depending on the severity of the damage and local laws, you may be required to obtain a permit from your city or obtain a license to carry out essential repairs. All electrical work must be done by a licensed electrician in your city. If you can’t get these permissions, you won’t be allowed to perform the work yourself lawfully. Check with your local municipality or development services department to determine what approvals are required for your project.
- Mortgage Lender Permission: If you have a mortgage on your property, your lender may have a say in who performs the repair and might not allow you to do it yourself. A typical provision in mortgage contracts states that your lender must be named on insurance claim checks. If you have this clause in your mortgage, all or part of the funds you receive from your insurance company will bear both your name and the bank’s name. The bank will typically put the cash in escrow and pay the contractor straight after the repairs are finished. Because the bank holds the money and has an interest in making sure your house is fixed properly, it may not allow you to perform the work yourself. So check with your mortgage lender to see if self-repairs are permitted.
Should You Do Your Own Home Insurance Repairs?
Consider the financial expenses, local rules, and, above all, your safety when deciding to repair your house yourself. Even if your home warranty company gives you permission to perform the repairs on your house, you should thoroughly evaluate the dangers and whether it’s worth doing the work yourself before committing to self-repair.
The first and most significant concern is safety. There are several hazardous materials that may be utilized in repairing a home’s system. If your house’s damage involves electrical wiring and you’re not trained in fixing it, you shouldn’t try to learn on your own — leave it to the experts.
You should also consider whether the amount of money you’ll save is worth the time and effort, especially if you’re not a seasoned DIYer. The amount your insurance company will pay out can differ greatly based on the repairs’ type, size of the claim, and the insurer’s rules.
What Are The Benefits Of Doing Your Own Repairs?
You might be wondering, if there are so many risks and challenges to doing your own repairs, why would anyone bother? Well, there are some benefits.
One of the most significant advantages is that you’ll likely have more control over the repair process. Insurance companies often choose contractors from a pre-approved list or send out their in-house technicians to assess the damage and recommend a plan of action. While going with such a technician is usually the wise choice, if you feel that they’re not providing the level of service you deserve, you can ask to have someone else sent out. If you’re handling the repairs yourself, you can choose the contractor, schedule, and materials.
Furthermore, doing your repairs might end up being cheaper than letting your insurance company do it. Your insurer will likely have a contract in place with its contractors that specifies the maximum amount they’ll pay for specific tasks. If you can do it for less, the money you save can either go into your pocket or be put towards upgrading materials.
Lastly, some people simply enjoy being involved in the repair process and feel a sense of satisfaction from fixing their home up themselves. If you’re experienced in home and appliance repairs and confident in your abilities, doing it yourself can be a fun and rewarding experience.
So, can you do your own home insurance repairs? It depends. You’ll need to consider the cost of materials and labor, the severity of the damage, your safety, and whether or not your mortgage lender will allow it. If you’re experienced in home repairs and feel confident in your abilities, doing it yourself can be a fun and rewarding experience. However, if you’re not experienced or comfortable with repairs, it’s probably best to leave it to the professionals.
Choosing the best house warranty company for your property may be somewhat challenging, especially if there are many various types of coverage available. First Premier Home Warranty is here to assist you in determining the finest plan for your needs. To help you decide what would be ideal for your home and budget, we provide a free online quotation. Visit our website right away to discover what choices you have!