Home warranty plans can save homeowners thousands’ worth of money. Instead of paying for the service fee and repair or replacement, the home warranty will shoulder part of the cost of repair or replacement.
As you should know by now, homeownership is more of a responsibility than a privilege. Owning a home means facing problems such as a broken-down heater that wouldn’t turn on during the dead of winter.
Appliances and home systems break down not because you are a neglectful owner. They break down because the home undergoes the usual wear and tear.
Home warranties exist to give homeowners peace of mind. Imagine not having to worry about home systems and appliances because a warranty covers them.
However, you have to get a home warranty from one of the top providers to ensure you are getting the best kind of protection.
Service Agreements
When looking for a home warranty, the best place to start is the service agreement. This contract specifies what appliances and home systems the agreement covers and under which conditions.
It is tempting to choose the cheapest warranty plan. However, it is not the most practical nor the most cost-efficient.
Most home warranties cover basic appliances such as the oven, stove, and dishwasher. Yet, what will happen to your heating and air-cooling systems if the warranty does not cover these?
The less expensive contracts usually do not cover heaters and air conditioners because they are more costly to repair or replace. Also, they are prone to breaking.
So, before signing any agreement, ask the agent what the contract covers. Start determining what you need first before picking the cheapest contractors out there.
That contract has no use if it only covers appliances that still have a manufacturer’s warranty.
Limits And Exclusions
You might be tired of hearing this, but you have to read the terms of the conditions. Make sure you understand the contract’s fine print before signing your name on the dotted line.
Limits and exclusions are a pain for homeowners because they are often hidden in the contract. If you cannot find the exact provision, ask your agent for a list.
The list will include the appliances that the agreement does not cover. It will also have the conditions that the appliances should be in for coverage.
For example, the agreement can provide a warranty for the stove but not the oven that comes with it.
Knowing the scope and limitations of the contract will help you plan the best course of action when an appliance or home system breaks down.
Costs
The plan’s cost will depend on the coverage, limits, and exclusions. The more appliances and home systems you want to be covered, the more expensive the contract will be.
There is, of course, an advantage to paying a higher premium. It also means you have fewer out-of-pocket expenses when a home system or appliance suddenly breaks down.
Many warranty companies will let you customize the plan’s coverage. You need to pick a basic plan and add options to your coverage if you want.
For example, if you want the washer and dryer to be covered, you need to pay for more than the basic coverage. Most basic home warranty plans do not cover the washer and dryer. Click here to read more
Licenses And Insurance
One of the most important things to check before paying for a home warranty is if the service contractors are licensed and insured.
First, you want only duly licensed technicians to work on your home systems and appliances. That ensures that they have the knowledge and experience to fix the problem.
Second, homeowners should want only insured technicians to come to their homes. This is both for the protection of the technician and the homeowner. Suppose an accident happens in your home involving the technician.
In that case, the insurance company should be liable for the expenses they incurred — whether in terms of needing emergency care or any item they broke in your home.
The Takeaway
A home warranty works to the homeowner’s advantage only if they know how to choose the right company. Fly-by-night warranty companies will take your money and leave you hanging when you thought your appliances and home systems are covered.
Ask for quotations from reputable home warranty companies in your area. Compare their costs and features. While the cheapest policy is usually the most attractive, that doesn’t mean it is the best.
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