When it comes to home warranties, there are a lot of factors to consider. It’s important to choose a plan that covers the appliances and systems you need, offers good customer service, and is offered by a reputable company. Here are six things to keep in mind when choosing the right home warranty for your needs.
1. How much does it cost?
The question of how much a home warranty costs is essential to consider when deciding whether or not to purchase one. Various factors go into pricing a home warranty, such as your home’s size, the home’s age, the type of coverage you need, and more.
While the cost of a home warranty may seem like a large upfront expense, it could save you money in the long run by preventing expensive repairs or replacements down the line. In addition, many home warranty companies offer discounts for customers who purchase multiple years of coverage or add additional coverage options to their plans.
The cost of a home warranty will vary depending on the company and the plan you choose. Generally, the average home warranty cost of basic plans starts at around $500 per year, while more comprehensive coverage can cost upwards of $700. That’s roughly $40 to $50 per month, which is relatively affordable considering the out-of-pocket repair costs you may spend without a home warranty. Remember that you’ll also have to pay a service fee every time you use your warranty, typically between $50 and $100, but that’s reasonable.
2. What’s included?
As a homebuyer or homeowner, you know that things can break. And when they do, it can be expensive to repair or replace them. That’s where a home warranty comes in. A home warranty is a service contract that covers the repair or replacement of many of the most common home systems and appliances, such as your HVAC system, electrical system, plumbing, and more.
When choosing the right home warranty for your needs, one of the first things you’ll want to consider is what’s included. Most home warranties offer coverage for major systems and appliances, but there may be differences in what’s covered by each company. For example, some home warranties will cover your pool or spa while others won’t.
It’s important to read the fine print of any home warranty you’re considering to know exactly what’s covered. That way, you can be sure to get the coverage you need and avoid any unpleasant surprises down the road.
3. What’s not included?
Just as important as what’s included in a home warranty is what’s not included. Most home warranties won’t cover things like pools, spas, or other outdoor features. Additionally, many plans exclude coverage for pre-existing conditions or items that are considered “high risk.” Be sure to read the fine print carefully to know what isn’t covered.
4. What is the claims process like?
The claims process for a home warranty can vary depending on the provider, but generally speaking, it is fairly straightforward. There are a few things to keep in mind about the claims process.
You will first need to contact your home warranty company to report the problem and request service. Once they receive your request, they will dispatch a qualified technician to diagnose and repair the issue. In most cases, you will only be responsible for a small service fee, and the home warranty company will cover the cost of any parts or labor required to fix the problem.
Second, it is important to read your home warranty contract carefully to understand what is covered and what is not. Some home warranty companies have exclusions for certain repairs, so it is important to be aware of these before making a claim.
Additionally, many home warranty companies have a limit on how much they will pay out per claim, so if the repair costs exceed this amount, you may be responsible for covering the difference.
Finally, it is important to consider the claims process when choosing the right home warranty for your needs. Some home warranty companies have a more streamlined process than others, so if you are concerned about having to jump through hoops to get your claim processed, it may be worth considering a different provider. Additionally, some home warranty companies require that you use their preferred service providers, while others give you the freedom to choose your own. Considering the claims process when deciding can help ensure you get the best possible value for your money.
5. What is customer service like?
Customer service is important for any type of insurance, and home warranties are no different. You want to ensure that you’re working with a company that’s easy to get in touch with and will respond to your claims promptly. Be sure to read online reviews before choosing a home warranty company.
6. Is the company reputable?
There are a lot of fly-by-night home warranty companies out there, so it’s important to ensure you’re working with a reputable one. Look for a company that’s been in business for several years and is accredited by the Better Business Bureau. You should also make sure that the company is licensed and insured.
Choosing the right home warranty can be difficult, but it’s important to take your time and choose the right plan. Keep these six things in mind when deciding, and you’ll be sure to find a home warranty that meets your needs.