Home warranties can be a great way to protect your family and your investment. If you are in the market for a home warranty, you need to know some key facts. This blog post will list the top things you need to know before buying a home warranty policy.
The overall cost varies
The direct cost of a home warranty is the monthly or annual premium you pay to have coverage in place. But, there are also service fees each time a technician is called out to your home. These fees usually vary depending on specific factors such as the company and the issue that needs to be fixed. For instance, you have to pay a service fee for the technician to fix it if your refrigerator breaks down. In this case, you may want to compare an American Home Shield cost against a Choice Home Warranty cost to see which company offers the best value for your needs. The service fees the former charges are often less than what the latter charges. It’s important to factor in both the premium and potential service fees when deciding on a policy. After all, the lowest premium may not necessarily mean the best value for your money if service fees are higher.
Be aware of coverage limits
Each home warranty policy will limit coverage for specific items or systems in your home. For example, some policies may have a maximum dollar amount to cover repairing or replacing an appliance. In contrast, other policies may limit the number of service calls allowed annually. The maximum dollar amount for coverage may also vary by item. The limit of service calls per year is essential because if you exceed the limit, you may have to pay for any additional calls out of pocket. It’s important to carefully review the coverage limits before purchasing a policy. You don’t want any unexpected expenses if something breaks down in your home. This means that for an older furnace that may need more frequent repairs, a policy with lower coverage limits for heating systems may not be the best choice for your needs.
Understand what is and isn’t covered
In addition to coverage limits, it’s also essential to understand what types of items and issues are covered by the policy. Many policies will have exclusions for certain things, such as routine maintenance or pre-existing conditions. Regular maintenance includes tasks such as changing furnace filters or cleaning out dryer vents, while pre-existing conditions refer to problems before the policy was purchased. Ensure you understand exactly what is covered before buying a policy. Otherwise, your money will be wasted on a home warranty that doesn’t cover the things that you need it to.
Consider additional coverage options
Additional coverage options may be available from some companies but you may have to pay for an additional fee. For instance, you may be able to add coverage for your swimming pool or spa or coverage for a second refrigerator in your home. These additional coverage options can provide peace of mind and help protect against unexpected expenses, but it’s essential to consider the cost before adding them to your policy. If the additional cost is too high, it may be more cost-effective to set aside funds in a separate savings account to cover potential repairs or replacements for these items. Usually, it’s best only to add additional coverage if the cost is reasonable and you feel it’s necessary for your specific situation.
There is often a waiting period
Most home warranty policies have a waiting period before covering certain items or issues in your home. This waiting period can vary by company and policy, but it is typically 30-90 days from the start of the coverage. It’s essential to be aware of this waiting period before purchasing a policy, as you may not be able to use it immediately for specific issues in your home. For example, suppose your dishwasher breaks down just a few days after purchasing a policy with a 90-day waiting period for appliances. In that case, paying for the repair out of pocket until the waiting period is over is necessary. Companies implement a waiting period because it helps prevent fraud and misuse of the policy.
Think about the long-term benefits
A home warranty can provide peace of mind and protection against unexpected expenses for necessary repairs or replacements in your home. It’s essential to consider the long-term benefits of a policy, as it can save you money over time and provide added security for your family’s residence. Additionally, some real estate agents recommend having a home warranty before putting your house on the market, as it can provide added value to potential buyers. Overall, a home warranty can be a wise investment for your family’s house.
Get quotes from multiple companies
As with any type of insurance, it’s always a good idea to shop around and get quotes from multiple home warranty companies before making a decision. Each company may have different coverage limits and exclusions, as well as varying premiums and service fees. By getting quotes from multiple companies, you can compare and contrast to find the policy that best fits your needs and budget. Plus, some companies may offer discounts or promotions, so it’s worth checking with several before making a decision.
Look into the reputation of the company
When purchasing a home warranty, it’s essential to consider the company’s reputation. Look for companies with a track record of providing good customer service and promptly addressing issues. It’s also a good idea to read reviews from past and current customers to get an overall sense of their experiences with the company. A reputable home warranty company can provide added peace of mind and assurance that any necessary repairs or replacements in your home will be taken care of efficiently.
Overall, a home warranty can be an intelligent investment for protecting your family and home. However, it’s essential to do your research and fully understand the details of any policy before making a decision. By considering factors such as overall cost, coverage limits, and what is covered, you can choose the best home warranty for your needs. Rest assured that with some thorough research and careful consideration, you can have peace of mind knowing that your family and home are protected.
