How to Get a Home Owners Warranty
A home warranty offers peace-of-mind protection for certain components in your home that fail because of normal wear-and-tear. Warranty contracts usually last a year and include repair or replacement of major appliances and heating, cooling, plumbing and electrical systems. Coverage varies by company and by plan. Although warranties are contracts, not insurance policies, some states' insurance regulatory agencies oversee warranty providers as well.
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Instructions
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Determine that you need a home warranty. If you purchased your home recently and it's a new construction or a new manufactured or modular home, a builder's or manufacturer's warranty might be in effect.
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Include a clause in your sales contract stating that the seller will purchase a warranty on your behalf, if you're about to purchase a home.
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Search the Internet for home warranty providers that offer coverage in your state. Each provider's website should have a drop-down box that allows you to search your state.
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Research the warranty plans offered by several providers that do business in your state. Make a note of the items each plan covers and excludes, including appliances and heating/cooling, plumbing and electrical system components, service-fee deductibles and ceilings on coverage.
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Conduct an apples-to-apples comparison of the different levels of coverage each company offers. For example, compare the lowest-cost plan from Company X to the lowest-cost plan from Company Y, then the midrange plan, and so on.
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Contact each company for a price quote. Request a quote for each level of coverage each company offers, including deductible amounts. Ask the person you speak with to explain the process of purchasing a plan, requesting repairs and canceling your contract.
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Purchase the plan that offers the best combination of coverage, deductibles, warranty price and repair procedures, according to the procedure explained to you during your research.
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Tips & Warnings
You'll likely need extended coverage if you'd like to include an air conditioning unit, pool or other "luxury" item in your plan, or if you want coverage for appliance parts not covered by lower-level plans. For example, Home Warranty of America's basic plan doesn't cover dishwasher racks, baskets and door seals, but its premium plan does. Pre-existing conditions -- so named, in some instances, merely by the nature of a problem and the likelihood that it occurred gradually -- almost certainly require extended coverage. (HWA)
The warranty provider, not the homeowner, decides whether to repair a covered item or replace it.
If you're purchasing a home and the seller provides your warranty, she'll likely purchase a bare-bones plan. You may need to pay out-of-pocket for extended coverage.
A home warranty is not insurance and it does not replace homeowner's insurance. Insurance protects against losses due to damage to your property's structure and contents. A warranty merely repairs or replaces your home's appliances and systems that wear out with normal use while the warranty contract is in effect.
