Home Warranty Tips for Homeowners
Experts advise that homeowners set aside between 1% and 3% of the purchase price of their homes to pay for repairs. That can add up to a large sum of money. And that’s one reason many homeowners make the decision to invest in a home warranty—a product that can help you budget more easily for home repairs and protect major, unforeseen maintenance expenses.
What Is a Home Warranty?
For starters, a home warranty isn’t an insurance policy. It’s a contract between a homeowner and a home warranty company. Home warranties aren’t contingent to the same regulations that govern the insurance industry. But home warranties do share some features with insurance policies that you’ll recognize. You’ll pay a monthly premium for home warranty coverage. If you make a home warranty claim, you’ll pay an out-of-pocket deductible for each service call required to resolve your maintenance problem. Your coverage will have pre-determined coverage limits and exclusions. In short, home warranties are rather complicated instruments and you should be sure you understand all of the terms of any warranty you’re taking into account.
Home Warranty Coverage 101
The majority of home warranty companies offer two categories of protection: system coverage and appliance coverage. When your shower starts leaking out of the blue and you need to phone a plumber or your central air stops working during the hot days of summer and you need an HVAC contractor as soon as possible, system coverage goes into effect. If the self-cleaning feature of your oven is breaking down, that repair would be covered under the appliance part of your warranty. Most home warranty companies provide consumers the choice of carrying one type or both types of protection.
The best home warranty companies allow you to tailor your plan to an extent. You can choose both system and appliance coverage or one or the other. Most home warranty companies also offer provisions for less frequent home amenities like pools and trash compactors.
Finding the Best Home Warranty for You
The best suggestion we can give you is to look around and carefully consider whether you actually need a home warranty. If you live in a newly constructed home, all of your systems and appliances are brand new and under factory warranty and a home warranty is probably not worth the cost at this very moment.
Also, go online and visit different sites such as Trustpilot and the Better Business Bureau. Check out reviews and see what other customers are saying about home warranty companies. Read consumer complaints registered and avoid companies that are unfavorably rated or rack up a ton of negative feedback.
Is Home Warranty Worth It?
A home warranty is like an insurance policy in one more fundamental way. You purchase it to dodge large expenses. If you currently live in an older home or your appliances are showing some deterioration, you’re more likely to use your home warranty. You may never make a claim and you may feel like you bought something you didn’t need. But at the end of the day home warranties, like insurance policies, do provide peace of mind. And that’s a substantial part of their value.
Source:
Genesis Walker, Money.com
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