Home warranties can help homeowners save on costly repairs and replacements. However, it’s important to ask the right questions before choosing a provider.
Look for a provider that has a hassle-free claims process and reputable contractors. Also, find out if the provider has sample contracts that you can look at before purchasing a plan.
What is the coverage?
Home warranties cover systems and appliances that break down due to normal usage or wear and tear. They do not provide coverage for natural disasters or damage to the home structure like homeowners insurance does.
Review the contracts and service details for your chosen company to ensure that you’re getting the coverage you want. Some warranty companies offer sample contracts that can give you an idea of what the contract will look like when finalized. It’s also important to check whether your chosen company excludes coverage for items that are covered by another warranty.
What are the exclusions?
Even the best home warranty providers have limitations and exclusions. These include things like a warranty’s payout cap (the maximum amount the company will pay for a claim) and the fact that some systems and appliances may have preexisting conditions.
Ask about these before you sign a contract to avoid surprises. Also, make sure you understand the claims process and what happens if you cancel your coverage. These questions will help you find a provider that’s right for you. For more information about what to look for, contact us today.
What is the payout cap?
Home warranty companies have a limit on how much they’ll pay out for repairs and replacements. Make sure you understand these limits before signing up, and find out whether they apply to all claims (aggregate) or are per-item. Also, find out if the repair company will choose contractors or give you options. If the repair company is not your choice, it could lead to poor service or subpar results. A better option is to learn how to handle minor home repairs yourself and build an emergency fund to cover expenses that you cannot anticipate.
What is the service fee?
Home warranties can cost a few hundred to over $1,000 per year, depending on the coverage. Many homeowners believe a home warranty is worth it because they can avoid paying out-of-pocket for expensive repairs and replacements.
However, it is important to understand the service fee and its purpose. This can help customers make better purchasing decisions and appreciate the value they are receiving. Moreover, it helps them understand the benefits of the service fee and its importance to the company’s financial sustainability.
What is customer service like?
Home warranties save homeowners time and money by connecting them with reputable repair or replacement contractors. The best warranty companies offer friendly, knowledgeable customer service. They also provide sample contracts to allow homeowners to compare prices and coverage before they purchase a plan.
Read consumer reviews and ratings to see how a provider treats its customers. Look for a provider with a hassle-free claims process, a network of local service technicians, and a robust vetting system for its contractors. Be sure to ask a provider about their waiting period, as most have a 30-day window in which covered items won’t be fixed or replaced.
What is the warranty company’s reputation?
Many warranty and service contract companies are not reputable, which is why it’s important to check the company’s reputation before purchasing a home warranty. You can do this by entering the company name into a search engine and looking for customer reviews.
A home appliance repair insurance plan can help alleviate some of the financial burden that new homeowners face when major appliances and systems break down. However, it’s important for buyers to understand exactly what is covered and how much the policy costs before they buy one. This way, they can avoid wasting money on a warranty that doesn’t provide the coverage they need.
What is the warranty company’s warranty policy?
Many warranties come with stipulations that can make using them difficult. If a company’s warranty policy makes it difficult to use its warranty, consumers can file complaints with state consumer protection agencies or hire attorneys to pursue legal action.
A warranty is a promise by a company to repair or replace a product. Some warranties have claim caps, deductibles and service fees. Other warranties require specific maintenance to keep them in effect. Some warranties also include “consequential damages,” which cover losses caused by a defective product, such as food spoiled in a refrigerator.
