Unlike homeowner’s insurance that offers protection against perils such as weather and other natural disasters, home warranties offer protection against major home system failures.
The protection of home warranties can offer homeowners peace of mind against major repairs and unforeseen expense by assigning the repair risk over to the warranty provider.
Resale homes, in particular are great candidates for home warranties as the used systems and appliances they contain already have wear and tear and often times limited life remaining.
Here are three important tips in getting the most out of a home warranty:
Know your coverage
Know what is covered and what isn’t. Home warranty coverages differ and the providers that offer them differ too. Most home warranties cover all major systems within a home including central heating and cooling systems, electrical components, plumbing systems, clothes washers/dryers, and kitchen appliances.
Home warranty providers offer coverage at an annual premium, but they also include deductibles and service call fees. Knowing what those costs are can help you to weigh the benefits of one plan over another.
Perform routine Maintenance
Home systems must be “properly maintained” so knowing what a provider deems as proper maintenance is crucial in identifying any potential policy exclusions. Your maintenance performance as well as that of the previous homeowner before you will be evaluated by service technicians and relevant to your policy.
Choose a reputable warranty provider
Some warranty providers are prompt and professional and some are not. Researching a provider’s reviews as well as its service history is important to identify a reliable company. Home warranty providers typically have data available to reflect its performance and claim history. Use that data to compare and choose the provider that will offer you the peace of mind you deserve.