How to Compare Home Warranty Costs
Buyers of home warranties receive an umbrella insurance policy, covering several items in their home. If one of those items breaks, the insurer will pay to fix or replace the item. There are two things that will determine the cost of your home warranty: coverage options and location. Additional fees should also be factored into the overall cost.
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Coverage
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Insurers choose different items to cover in a home warranty depending on the possessions they think are most likely to break or need replacing. Appliances and heating, cooling and plumbing systems are covered by most policies. An insurance company will usually cover a list of standard items for all customers for a fixed price and then give each customer the option to add on additional coverage for extra items, like spas, for an additional yearly cost.
Fees
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You may have to pay a fee when one of the company's contractors comes to your home to assess a broken item. Knowing the terms of the policy will prepare you for these additional costs of a home warranty and allow you to choose the company that charges lower fees.
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Geography
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Where you live will also affect the cost of your home warranty policy. Those who live in an area where the cost of living is high will pay more, since repair costs are higher in these areas and servicemen will charge higher fees.
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