Things to Consider Before Opting for a Home Warranty

If you’re in the process of buying a house, you might have come across the term ‘home warranty’ before. But what does it mean? Well, a home warranty is an agreement that lasts for one year and covers the repair and replacement of home appliances and systems. It’s different from homeowner’s insurance, which covers things like theft and natural disasters. If you’re buying a house, it’s a good idea to check if a home warranty is available. “It is common for a seller to purchase a home warranty and add it as part of their closing checklist for a new homeowner,” says Cinch Home Services, a company that provides a home warranty for buyers. But check with your seller to assure that they’re providing you with the option.

But how do you get a home warranty? A good home warranty contract can help protect your appliances and home systems by covering their repairs and replacements. Before you decide to get a home warranty, ask yourself these seven important questions which we’ve listed for you below.

Do you need a home warranty?

The first important thing to understand is that a home warranty is not the same thing as homeowners’ insurance. Your homeowners’ insurance probably doesn’t cover the cost of repairing or replacing your home appliances if they break down, and this can be a real hassle and expense. So, it’s worth checking with your seller to see if a home warranty plan is already included in the sale. If it isn’t, you may be contacted by home warranty companies after the sale is closed to purchase a plan for your home. Keep in mind that it’s always a good idea to have a plan in place to cover unexpected repairs and replacements, and a home warranty can be a great option for this.

What does the contract cover?

Always check what’s covered under the contract before signing. To ensure that all your desired appliances are covered, take inventory of the pieces in your home that might need repair or replacement soon, and check that they’re included in the contract. It’s also a good idea to include any expensive appliances or systems that you want to protect. There may be exclusions or loopholes in the contract terms and conditions, so always read the fine print and understand what’s covered and what’s not. For example, some policies may not cover damage caused by user error, such as improper handling or using appliances in ways not specified in the contract. Be sure to ask questions and clarify any concerns before signing a home warranty contract.

What even is a Home Warranty and what to Consider Before Opting for a Home Warranty?

Will you get repair or replacement services?

Home warranty contracts may not always cover the full replacement cost of an item. Some contracts may only cover partial replacement or repair. If an item needs costly repairs, the company may offer a replacement, but it depends on the specific item and contract terms. To get a better idea of what’s covered, read through the terms and conditions of the contract carefully. Look for information on which items can be repaired or replaced and which items are excluded from coverage. If an item falls under the exclusion list, it won’t be replaced under the warranty contract. This will help you to make an informed decision and choose a contract that best suits your needs.

What are the limitations?

When choosing a home warranty contract, it’s important to understand the monetary limitations and exclusions of the company. Limitations or exclusions refer to parts of appliances that won’t be covered by the contract. Monetary limits are the maximum amount the warranty will cover to repair or replace your appliances. Typically, there are specific limits on certain appliances or a maximum limit on all repairs and replacements. Remember to check your contract carefully to understand what options are available to you. While some companies offer unlimited coverage, others have limits on how much they’ll pay for repairs and replacements. Make sure you choose a contract that aligns with your budget and coverage needs.

What is the cost of the warranty?

The cost of the warranty usually ranges from a few hundred dollars to around a thousand dollars per year. You might have to pay the full amount upfront, or you may be able to pay in monthly installments. The type of property you have can determine the amount payable, but the size of the property may not affect the cost. However, any changes or upgrades to your home’s structure may increase the cost of coverage. It’s also worth noting that the cost of a home warranty can be higher for newer homes. In addition to the cost of the warranty, keep in mind that each service request typically costs around $60 to $100 for repair or maintenance. If multiple services are needed, you may need to pay for them separately.

Does the company have a great track record?

Before signing up for a home warranty, always research the company’s reputation. You can ask the company for references or read reviews from previous customers to get an idea of their quality of service. Look for reviews online and check the company’s ratings on reputable websites. Make sure that the company is trustworthy and has a good track record of providing quality service to its customers. Keep in mind that your appliances and home systems are important, and improper maintenance can cause further damage. Choose a reliable company to protect your investment. There are scammers out there too, so learn how to protect yourself against them.

Is the company capable and professional?

Home warranty companies require trained and licensed technicians to perform repairs and maintenance tasks. It is important to discuss the details with the company before signing a contract and asking to see the technicians’ licenses. Many states require companies to hire only licensed technicians for any home maintenance work. Hiring licensed technicians ensure quality service and reduce the risk of mishaps. It also protects your rights as a customer. You can check local forums for reviews on the company and cross-check its credibility before signing a contract. Experienced staff will understand your problems instantly and provide top-notch service without any hassle.

What even is a Home Warranty and what to Consider Before Opting for a Home Warranty?

Whether you’re starting a family and buying a property to kickstart your new journey or buying a home at retirement, a home warranty is a great way to ensure that your home appliances receive regular maintenance and repair services when needed. Nevertheless, selecting the wrong company can lead to more problems than solutions. Do your research before signing any contracts to avoid any impromptu inconveniences. Make sure you read through the terms and conditions to fully understand the warranty’s limitations and exclusions. Also, take the time to learn about the company’s background and reputation before hiring them. A home warranty is not a one-size-fits-all solution. Different companies offer different coverage options, so take the time to find the one that best fits your needs.