|
Q. WHAT IS AN 'EXTENDED SERVICE CONTRACT' FOR A MANUFACTURED HOME?
A. An 'Extended Service Contract' is a legal document that protects
you, the owner of a manufactured home, against unforeseen costly
financial losses due to defects of material and workmanship in your
major home appliances and certain other major home components and
systems should they occur. You have the peace-of-mind knowing repair
expenses will not hinder your way of life with unexpected additional
debt.
Q. WHO PROVIDES THESE 'LEGAL CONTRACTS'?
A. Most service contracts are issued by Professional Specialty Corporations
specializing in this service. In most cases these companies are
backed by written agreements with well established Insurance Companies,
to provide you with added assurance your claims will always be paid,
as provided for by your contract, no matter when they occur.
Q. ISN'T A 'SERVICE CONTRACT' THE SAME AS A 'MANUFACTURER'S WARRANTY'?
A. Not really, although they provide a similar service, they are
different in many respects. A 'manufacturer's warranty' is provided
only by the manufacturer of your home. Coverage provided by your
manufacturer is often for a period of only one (1) year on the structure.
Separate coverage on certain major appliances that came with your
home is provided by your appliance manufacturers for as little as
ninety (90) days. An 'Extended Service Contract' provides you with
comprehensive protection for an extended period of time (up to 7
years after your purchase date) and covers both the structure and
major appliances that came with your home… How many times have you
heard the saying, "Wouldn't you know, the thing broke down a week
after my manufacturer's warranty expired!".
Q. ARE ALL 'EXTENDED SERVICE CONTRACTS' THE SAME?
A. No, there can be many differences in the coverage provided by
various service contract companies. For example, some companies
may restrict or limit coverage for certain appliances, structure,
or certain home systems. You can also encounter different loss claim
deductibles or co-pays, as these vary by individual company. Fees
for coverage also vary to some extent, however the old adage "You
get what you pay for" is almost always true.
Q. WHAT HAPPENS IF I PURCHASE AN 'EXTENDED SERVICE CONTRACT AND
I END UP SELLING MY HOME WHILE IT'S IN FORCE?
A. Most companies will allow you to transfer the remaining coverage
on your contract to your buyer. Some may charge a small service
fee to complete the transfer processing. This can benefit you in
two ways. First, having extended service coverage can help you sell
your home more quickly than if you have no protection to offer your
buyer. Secondly, you can usually get a higher price for your home
because this valuable benefit is available for your purchaser at
the time of sale.
Q. CAN YOU TELL ME WHAT IS COVERED IN MOST 'EXTENDED SERVICE CONTRACTS'?
A. Most extended service contracts provide NEW HOME coverage on
the following:
- MAJOR APPLIANCES
- PLUMBING & WATER HEATER SYSTEM
- CENTRAL HEATING SYSTEM
- CENTRAL COOLING SYSTEM
- COMPLETE ELECTRICAL SYSTEM
- HOME STRUCTURE
- LOAD BEARING STRUCTURAL PARTS
- DUCT WORK
Some companies even offer coverage for:
- FOOD SPOILAGE
- LOST KEY/LOCKOUT SERVICE
- EMERGENCY LIVING EXPENSE
Q. I'M GOING TO PURCHASE A
USED MANUFACTURED HOME. CAN I GET COVERAGE?
A. Yes, coverage is available for most late model manufactured homes.
This coverage is similar to new home coverage in many respects,
however there are some differences. First of all, you can only purchase
an 'Extended Service Contract' at the time you purchase your used
home. Coverage is not available after the purchase date. Secondly,
contract terms usually limit you to three (3) years or less depending
on the company providing coverage and the age of your home. There
may also be some variables in structure coverage as well. Nevertheless,
this is outstanding protection to have since most major home components
are covered. You may even be able to select an option that will
cover your central cooling/air conditioning system.
Q. I WOULD LIKE TO PURCHASE AN 'EXTENDED SERVICE CONTRACT' BUT I
CAN'T PAY THE TOTAL FEE AT ONE TIME. DO I HAVE ANY OPTIONS?
A. Yes you do. Depending on the state you live in some companies
or administrators can offer you financing that will spread your
cost over up to twenty four (24) equal monthly payments, and only
require a small down payment. Payment by major credit card is also
available and you can also pay the total fee by check or money order.
For extended service information on new
manufactured homes, click here.
For extended service information
on pre-owned manufactured homes, click
here.
To get a quote now, click here.
|
