How to Compare Home Warranties
When your compare "promise" contracts, such as insurance policies, auto warranties and similar guarantees of something, you must first understand exactly what is being promised. You can then compare features. Part of the research should be directed at comparing consumers' ratings of the companies that offer the warranties. Does this Spark an idea?
Instructions
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Learn what typical home warranties offer to get a starting point for comparisons. Home warranties differ widely, but there is some consistency in the general items addressed. For example: air conditioning, appliances, water heaters, electrical systems, some or most plumbing components including ductwork, garbage disposals, and inside wiring for telephones and electronics are generally covered.
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Consider what additional protection you might desire. For example, some homeowners want warranty protection for roofs, basement waterproofing, extra or unusual appliances or special systems such as solar equipment for power or heating. Some home warranties allow "holiday tree" decorations, which refers to your ability to add special coverage items like ornaments to a Christmas tree.
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Become familiar with items that are not typically covered. Most outdoor items, such as lighting, grills, in ground irrigation, lawn and garden equipment and sheds are normally not covered. Some plans don't cover all appliances, with refrigerators, washers and dryers commonly excluded. Swimming pools, indoor or outdoor, are also usually excluded unless added at a specified cost.
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List the coverages you desire and locate some home warranties that offer this protection. A side-by-side comparison of coverages versus the costs and terms of warranties should lead you to one to three favored plans. Be sure to clarify details for good apple-to-apple comparisons. For example, plans that cover plumbing components often do not cover faucet repairs, the most common problem. Homeowners who want that coverage should be sure favored plans contain it. Include any extra coverage you desire, such as swimming pools, the roof, the basement, etc., and compare their related costs.
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Perform one final research task. Much like some insurance coverage or extended auto warranties, home warranty plans that look the best on paper may be among the worst in the real world. Use the Internet to locate real life customer reviews of warranties offered by the companies that make the final cut. Sometimes a wonderful website, excellent coverages, and low cost premiums eventually pale when compared with the company's track record of claims payment. Visit the Resource link to get comfortable with websites that list consumer problems and recommendations of home warranties that should be favored or ignored.
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Tips & Warnings
Spend some time considering what must be covered and those items that may be desired, but possibly are not totally necessary.
First time home buyers who are unfamiliar with the many necessities of maintaining a house should always consider purchasing a home warranty.
Don't assume that all home warranty companies are created equal. Some are wonderful while others are much better at accepting payment than making payment on claims.
Never just accept a preliminary warranty company decision to deny a claim payment on a covered item. Unless the item has been obviously misused or treated badly, you should pursue payment diligently after an initial denial.
