How to Compare Home Warranty Insurance
For most people, purchasing a home is one of the largest single investments they will ever make. Having the proper insurance on your home is essential, but the cost of home repairs can become overwhelming. Home warranty insurance provides homeowners with peace of mind as it covers the cost of many common home repairs. Having a home warranty also eliminates the stress of finding a reliable contractor when dealing with home repairs. While this insurance has numerous advantages for homeowners, finding a company that will suit your needs can be a challenge.
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Instructions
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Determine what items you would like to have covered in your home warranty. Most standard plans include water heaters, plumbing and dishwashers. Make sure the company you choose covers anything extra you may want covered, such as pools, air conditioners and refrigerators.
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Look into sample contracts, which most home warranty insurance companies provide. These contracts list basic terms as well as any limitations or exclusions. Ideally, the company should cover all makes and models and extend coverage to multiple appliances without additional charge.
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Investigate customer service. The best companies will allow an unlimited number of service calls while you are covered. You should be able to call for repairs at any time. Check customer reviews and, if possible, the customer retention rate This is best done on independent websites, such as www.homewarrantyreviews.com. Look for companies that respond quickly when a problem arises.
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Find out what isn't covered. Most companies won't cover damages that are caused by lack of maintenance. These so-called pre-existing conditions mean you will end up paying out of pocket, sometimes for damage previous owners have caused.
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Consider the price. An annual home warranty premium can cost anywhere between $200 and $600. Deductibles are your out-of-pocket expense per repair and average $50 to $100. These deductibles are charged even if the company can't repair the damage. Keep in mind that a less expensive plan may not protect every major system in your home.
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Read the fine print before signing a contract. Most dissatisfied customers have issues relating to items that were included in the contract, but overlooked. For instance, most companies will replace items which can not be repaired, but some will not. Some companies like to hide the dirty details in the fine print, such as the payout limits on individual items.
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Tips & Warnings
Before purchasing home warranty insurance, consider a home inspection. This will enable you to fix any problems that may be considered pre-existing.
References
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