Before purchasing a home warranty, make a list of your systems and appliances. Determine what is in good condition and which are nearing the end of their life span.
Next, read sample home warranty contracts. You can find these on home warranty provider websites. Homebuyers should also research the providers’ reputations by visiting websites like the attorney general’s office and consumer reviews. The best home warranty companies in California have great reviews and people really have positive experiences with them.
Cost
Home warranty prices vary, depending on the plan purchased. Some homeowners pay a monthly or annual premium and a service charge for each call. The service fee is usually $75 or $100 per visit, although it may be less.
Homeowners should carefully read the plans to determine what is covered and not. In some cases, a policy may exclude items like garage door openers and smoke detectors that are hard-wired or linked.
Some providers offer combination plans that cover systems and appliances for comprehensive coverage, while others have a la carte plans. In addition, customers should check the provider’s reputation through customer reviews and government websites such as BBB or Consumer Affairs.
Many real estate agents recommend home warranties and can help their clients choose a plan that fits their needs. However, a home warranty is not a substitute for setting money aside in a rainy day fund for routine maintenance and major repairs.
Coverage
Home warranty providers typically cover systems and appliances that have failed due to normal wear and tear. However, it is important to understand what the warranty does and does not cover. The best way to do this is to review the plan options and choose one that offers the highest level of coverage for your budget.
It is also helpful to pay attention to the warranty contract’s terms, conditions and clauses. Make sure the plan you choose has a clear and easy-to-read contract that is free of hidden charges or fees.
A warranty can be a good investment for new homeowners who want to save money on repairs and replacement costs. But it’s also important to consider the costs of a home warranty and decide whether paying annual premiums is worth it. Alternatively, you can use the money you would spend on a warranty and invest it in an emergency fund to save up for unexpected expenses.
Exclusions
Home warranties can save homeowners money by covering the cost of repairs for major systems and appliances that break down due to normal wear and tear. However, you should always read the contract to ensure that it covers what you need.
A home warranty company usually contracts service contractors in your area to perform the repair work. You can usually find a list of these providers on the company’s website. However, you should be aware that these contractors are often selected because they have been approved by the company to do repairs.
You should also note that most companies place annual coverage limits on each system and appliance and on total payouts. These limits are designed to prevent homeowners from abusing their policies. Additionally, many home warranty plans exclude the repair of items that have been abused or damaged, as well as pre existing conditions.
Reputation
Home warranties may help buyers feel safe and secure when they move into their new homes. Real estate agents often recommend them to their clients, and many sellers offer a warranty as an incentive to entice homebuyers. However, buyers should do their homework to ensure that the home warranty they buy will serve their needs.
It’s important to read reviews of a home warranty company before purchasing a plan. You should also research how each company vets their contractors and how they handle complaints. Choosing a company that has a hassle-free claim system could save you time and money down the line.
Home warranties provide a safety net against expensive repair bills, but they don’t always work as intended. To decide if a home warranty is worth it, homeowners should consider cost, coverage, and reputation.