How to Use Your Home Warranty Effectively

A home warranty can protect you from big repair bills.

Home warranties can be a dream or a nightmare. Getting service calls, claims paid, and repairs done correctly can be a hassle, covered or not. With warranties costing hundreds of dollars per year, when you have home warranty protection, you want to make the most of your policy to ensure you get the most for your money.

Things You'll Need

• Copy of your warranty agreement

Instructions

1. Read your policy before you need to file a claim. Understand what equipment your home protection plan covers. There are usually a range of coverage levels, some including equipment, like heat pumps, and some not.

2. Keep the phone number and policy number with you. Program it into your phone and/or computer. If you have an emergency situation while not at home, you need to be able to contact your home warranty company.

3. Try your home warranty company's 24-hour help line before you have a problem. If your company does not have one, call them and ask them what to do in case of emergency on a covered repair, for instance, if you have a furnace problem in the middle of winter or no working sinks.

4. Do not call your own repair man and expect the warranty to pay for the services.

5. Learn about replacement policies on items that cannot be repaired. Most warranties replace items that cannot be repaired with an item of similar kind. Many times these are not items you would have chosen if you were purchasing new.

6. Ask for a cash-out option on items that you want to replace or upgrade yourself. You may get significantly less than what you will pay for the new item, however the price they give you reflects the wholesale price they are getting on a lesser-valued item. If you want to upgrade, though, it might be the way to go.

7. Maintain your home equipment regularly and document service dates. Keep written documentation on air conditioning and furnace servicing, cleaning the water heater, and other home maintenance records.

8. Attempt to tackle small problems, like a dripping faucet or or running toilet on your own. No matter how small the repair, a warranty company charges a set service-call fee no matter what. Additionally, the warranty company contracts its work out to local repair company, but charges their own fee. For small repairs, inquire as to a local company's service fee before contacting the warranty company.

9. Be assertive on the phone. Speak calmly, state the problem, ask only for covered services, and continue moving up the chain of command until you get your questions answered.

Tips & Warnings

• Evaluate how much the warranty costs, what repairs would have cost without it, and the state of your home to see if you want to renew it.

• Document interactions and letters

• Check consumer reviews and local real estate agents for information about plans offered in your area.

• Repairs contracted through home warranties can take longer than doing it yourself. Be patient, but demand quality licensed professionals work on your home.

• If you have equipment installed, have the gas, water or electric company out to look at it. If it is installed incorrectly, document it and have it fixed.

• For expensive repairs, the warranty company may require more than one repair company to give an estimate.

References

• The Chicago Tribune: What You Should Know About Home Warranties
• Investopedia: Do You Need a Home Warranty

Resources

• Home Warranty Reviews.com