Provide yourself a peace of mind with a home warranty. It’s a shrewd money move for new homeowners and others who may not have the cash reserves to cover repairs.
The details vary, but most home warranties start 30 days after you buy the contract. To make sure the coverage suits your needs, check out sample contracts and review customer reviews.
Coverage Options
Depending on the plan you choose, home warranties can cover a variety of systems and appliances in your house. Most companies allow you to customize your coverage with add-ons like pool and spa service, electronics coverage and more. Some companies even offer sample contracts, which are not a full representation of your final contract, to help you make an informed decision.
As you review a home warranty provider’s offerings, look for annual coverage caps. These limits determine how much the home warranty company will pay for a given repair or replacement. This can be important to consider if you have expensive or specialized appliances and systems in your home. You may find that you’re responsible for the cost of repairs beyond the limit of your plan, which can add up over time. The alternative is to save for the costs of repairs or replacements out of pocket. That can take some time, but it can also save you a lot of money in the long run.
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Exclusions
Home warranties may not cover every repair or issue. Those that do often come with coverage limitations or exclusions, such as annual caps and pre-existing conditions.
These limitations can be found in the company’s contract documents, which can be obtained from a provider directly or by reading sample contracts. These can include specific models or brands that a provider won’t cover, as well as coverage amounts for both systems and appliances.
Most providers also exclude issues caused by normal wear and tear or due to the age of an appliance or system. This means that a homeowner would have to turn to their homeowners insurance to cover damage and loss of the item in these cases. It is important to note that homeowners insurance typically covers things such as fire, theft, hail, and certain types of water damage. So, a homeowner must decide whether the annual premium for the peace of mind of knowing that their systems and appliances are covered is worth it.
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Costs
The cost of a home warranty varies by company, plan and location. It’s important to find a provider with a low monthly or annual premium, and coverage that is
comprehensive without having dollar caps or exclusions.
A good provider offers a variety of add-ons to make their plans even more affordable, such as guest units, well pumps and spare refrigerators. Understanding a warranty for kitchen appliances such as a dishwasher or insinkerator warranty can help you choose the right coverage. It’s also a great idea to get sample contracts from multiple companies so you can compare costs, coverage options and service fees.
If you decide that a home warranty is a valuable addition to your real estate transaction, ask your agent to recommend a reliable company with an excellent customer service team and online portal or app for filing claims. Then, let your buyer’s agent know that you’d like to include a home warranty in closing costs so the seller can transfer it to the new owners at closing. This will provide buyers with peace of mind that their home systems and appliances are covered.
Getting Started
If you are ready to take advantage of the benefits of a home warranty, it is important that you do your research. There are many factors to consider, including pricing and coverage limitations and exclusions. It is also wise to read sample contracts and look for complaints from consumers.
Once you have a list of well-regarded home warranty providers, begin the process of requesting quotes. Compare the plans offered by each company and carefully examine any fees that may apply, such as deductibles or service call charges.
If you find a plan that offers the right level of coverage for your needs, it’s time to purchase your home warranty. Adding this safeguard to your homeownership can save you money and stress in the long run. It can also be an attractive incentive for potential buyers who might otherwise worry about unforeseen repair costs. And with one phone number or website, you can access a network of professional contractors to handle any necessary repairs.
