How to Buy a Home Warranty in 5 Steps
- Determine what type of home warranty you need.
- Research home warranty companies and compare pricing and coverage.
- Choose a home warranty company and purchase a plan.
- Understand the terms and conditions of your home warranty contract.
- Use your home warranty when something goes wrong with a covered item in your home.
Step One: Determine What Type of Home Warranty You Need
When you purchase a home, you want to protect your investment. A home warranty can help by providing repair and replacement coverage for many of the most important systems and appliances in your home. But with so many different home warranty options available, how do you know which one is right for you?
The first step in choosing the best home warranty for your needs is to determine what type of coverage you need. Do you need a comprehensive plan that covers everything from your HVAC system to your refrigerator, or would a more basic plan that covers only major systems and appliances be sufficient?
Once you have a good idea of the type of coverage you need, you can begin researching home warranty companies to find the best fit for your needs.
Step Two: Research Home Warranty Companies and Compare Pricing and Coverage
There are many different home warranty companies to choose from, so it’s important to do your research before selecting one. Start by reading online reviews to get an idea of what other customers have experienced with a particular company.
You should also compare pricing and coverage options when choosing a home warranty company. Some companies offer basic plans starting at around $250 per year, while others offer more comprehensive coverage for closer to $500 per year.
It’s important to find a company that offers good value for the price, as well as the specific coverage options that you need.
Step Three: Choose a Home Warranty Company and Purchase a Plan
Once you’ve compared pricing and coverage from different home warranty companies, it’s time to choose one and purchase a plan. Most companies will require you to pay an annual fee, as well as a service call fee each time you use your home warranty.
Be sure to read the terms and conditions of your contract carefully before signing up for a plan. Some home warranty companies have waiting periods before coverage starts, while others have limits on the number of claims you can make per year.
It’s also important to understand what is and is not covered by your home warranty. For example, many plans exclude coverage for pre-existing conditions or items that are not properly maintained.
Step Four: Understand the Terms and Conditions of Your Home Warranty Contract
As we mentioned earlier, it’s important to read the terms and conditions of your home warranty contract carefully before signing up for a plan. This way, you’ll know exactly what is and is not covered by your home warranty.
Some home warranty companies have waiting periods before coverage starts, while others have limits on the number of claims you can make per year. It’s also important to understand what is and is not covered by your home warranty. For example, many plans exclude coverage for pre-existing conditions or items that are not properly maintained.
By taking the time to understand your contract, you can avoid any surprises down the road.
Step Five: Use Your Home Warranty When Something Goes Wrong with a Covered Item in Your Home
If something goes wrong with a covered item in your home, your home warranty can help cover the cost of repairs or replacement. To make a claim, simply contact your home warranty company and let them know what happened.
Be sure to have your home warranty contract and any other relevant documentation handy when you call. The customer service representative will likely ask you for this information so they can process your claim.
Once your claim is approved, the home warranty company will send a technician to your home to diagnose and repair the problem. In some cases, they may even decide to replace the broken item entirely.
Depending on your contract, you may be responsible for paying a service call fee each time you use your home warranty. In most cases, this fee is around $75-$100.
The Bottom Line
A home warranty can be a valuable tool to have in your homeownership arsenal. By understanding what a home warranty is and how it works, you can be better prepared to use one if something goes wrong in your home.
When choosing a home warranty company, be sure to compare pricing and coverage options carefully. You’ll also want to make sure you understand the terms and conditions of your contract before signing up for a plan.
By taking these steps, you can be sure that you’re getting the most out of your home warranty.