When you buy a home, there is always the chance of an appliance or home system suddenly breaking downs. Really expensive and essential items like the plumbing system, oven, and HVAC system, can be quite costly to repair or replace. Once you have found your new home, you can protect your investment by getting home warranty coverage as a complement to your standard home insurance policy.
A home warranty is not the same as home insurance. For instance, a home warranty is not mandated, as most home insurance policies are mandated by the mortgage lender. A warranty works differently than homeowners insurance. This type of plan covers repairs or replacements of specific appliances and systems in your home that breakdown due to normal wear and tear as well as age, or the units or systems no longer have a valid manufacturer warranty. Home insurance, on the other hand, covers damage from such incidents as flood, fire, hail, wind, vandalism, and other natural occurring events.
When searching for home warranty plans, there are a number of important points to consider before you make the purchase, including:
Determine your Warranty Coverage Needs
In your new home, do an assessment of all of the appliances and home systems. Find out their age, and if any are still under manufacturer warranty. An older unit or system will have gone through some wear and tear due to use, so it is wise to get older items covered under a warranty. It is important to get an idea of how likely an appliance or system will fail which will require repair or replacement.
Find a Trusted a Home Warranty Company
It pays to shop around for a home warranty company since not all home warranty plans are equal. Important qualities to look for in a good provider with quality plans include: they offer customizable plans, monthly premium payments, bundled warranty plans, extended warranties, and some even offer no term limit agreements. Also, check the company’s service and repair information to see if they have 24/7 customer contact, emergency services, and if their service technicians are pre-screened.
Read the Warranty Contract and Fine Print
In a home warranty agreement, you will only be covered for the items and systems listed. So, make sure you provide all needed items for coverage, and read the fine print which will state exactly what appliances and home systems are covered. In addition, read all of the terms and conditions. You should confirm before you sign the contract. Basically, make sure you understand what’s being offered.
A home warranty is an excellent complement to a home insurance policy, as home warranty plans cover things that are not covered by home insurance. The warranty will help you financially to repair and replace covered appliances and home systems. Home warranty plans are a popular choice by new and existing homeowners because they offer peace of mind.