Every homeowner knows the importance of protecting their home. A home warranty can be necessary because of the added protection and ease of mind. Your home is your investment and the savings and upkeep benefits can make a home warranty worth it.
Finding quality home warranty companies can be challenging. Homeowners may not know the right questions to ask in order to find the best home warranty to meet their needs. A few good tips will help you choose the best protection for your home.
A home warranty is a residential service which covers the costs that come with maintaining household appliances or systems. This differs from home insurance because it is a property insurance. The warranty will usually cover the large systems in a home. This may include hot water heaters, HVAC systems, electrical and plumbing. The service agreement will determine what items are covered and will be clear about the agreed terms.
Good Tips and Useful Advice
Some homeowners have been known to contact the Better Business Bureau when they discover that an item is not covered, blaming the service provider. Keep in mind, every homeowner will need to go over all of the details of the warranty and gain a clear understanding of their plan. Many complaints have come from consumers who did not know the terms.
Tip number one is to make sure you have a clear understanding about what will be covered and the items that will not be covered. Be clear about the following:
Understand the takeaway: this is the main point and it is filled with conditions and terms. Every warranty plan will be different from the next. One policy might cover the hot-water heater and not the entire water tank. Find out exactly which appliances will be covered and which ones are not on the covered list and be sure you have an understanding of all conditions. Keep in mind, various circumstances are not covered under some policies. This is referring to your appliances and how they actually break down. A power surge may not be covered. There are many details to understand in terms of the takeaway
Ask if the plan is going to replace broken items: Sometimes a repair is too expensive and some providers may replace an item instead of paying for the repairs because it is less expensive
Ask about pay outs and limits: It’s a good idea to find out how much the plan will pay out and if there are limits. An insurance limit is referring to the money that the insurer will pay toward a claim. The payout is the total amount of money that will be allowed as stated in a plan
Choosing a Home Warranty Plan
There are a few good steps to help any homeowner choose the best warranty plan. This is an important decision and home repairs can be costly without the added protection.
The following steps ought to be helpful in making your decision:
1. Compare and research; ask around and compare companies. Inquire with a realtor
2. Decide what you will need from your plan; once you know what you need, find a plan that will match them
3. Decide how much money you can spend on a plan; obtain straightforward costs and deductible and fit it into your budget
4. Inquire about the coverage limits; make sure all limits are written down because there are stipulations involved and you will want to be informed of the limit set and all details
5. Ask about replacement options; be sure to determine what your needs are in terms of the options that are offered in the plan
6. Ask about flexibility; there may be flexible payment options. It may be a good idea to find out if it is possible to upgrade at some point