Choosing the right home warranty plan is crucial as it can save you a lot of money on unexpected home repairs or replacement expenses. Here are 10 steps you can follow to select the most suitable home warranty plan for your new home:
- Identify Your Needs: Evaluate the appliances and systems in your home that may need coverage. Older homes typically have older systems and appliances that might be more prone to breaking down. If you have a brand-new home, your appliances, and systems might still be under the manufacturer’s warranty, so you might not need a comprehensive home warranty plan.
- Research Different Home Warranty Providers: Look at different companies offering home warranty services. Check their reputation, customer service record, and financial stability. You can use online review sites, the Better Business Bureau and other consumer protection resources to see how the company handles claims and customer complaints.
- Understand the Coverage: Home warranty plans can vary greatly in what they cover. Some plans might only cover appliances, while others might cover systems like your HVAC, electrical, and plumbing. Some plans offer optional coverage for items like pools or spas. Make sure you understand what each plan covers before making a decision.
- Look at the Cost: Home warranty plans usually require an annual premium plus service fees (also known as a deductible) for each repair visit. Compare these costs among different providers and plans. Remember, the cheapest plan is not always the best, particularly if it doesn’t provide the coverage you need.
- Read the Fine Print: Some warranty plans have limitations or exclusions that could affect your coverage. For example, there may be maximum dollar limits for certain types of repairs or certain causes of damage might not be covered. Also, look for whether the warranty company reserves the right to deny claims based on improper maintenance or installation.
- Consider the Service Response Time: Check what the typical response time is for service calls. You don’t want to be waiting days or weeks for a repair when something breaks down.
- Check If the Plan Is Transferable: If you plan on selling your home in the future, a transferable home warranty can be an attractive bonus for potential buyers.
- Renewability: Check whether the plan is renewable annually. Some companies might not allow you to renew if you’ve had too many service requests.
- Ask Around: Get advice from friends, neighbors, and your real estate agent. They might have experience with home warranty companies and could provide recommendations.
- Request a Sample Contract: Before you make a decision, ask the company for a sample contract. This will give you an opportunity to read the details of the plan, including the fine print.
Remember, a home warranty plan isn’t the same as homeowners insurance and doesn’t take the place of saving for potential home repairs. But it can be a useful tool to manage the costs of unexpected repairs.