You are buying a home and are considering getting a home warranty. Considering it is a good idea, but it’s important to know more about this type of warranty to make the right decision.
Not Home Insurance
Sometimes, people confuse home warranties with home insurance. Both may sound the same, but that couldn’t be further from the truth. The more you know about these policies, the clearer the difference should be.
In essence, home insurance is there to cover expenses linked to some kind of natural disaster or an event that occurred through no fault of your own. This could include things like fires or even thefts. A home warranty is here to help you cover the common expenses a homeowner might need to deal with. Home warranties can cover appliance repairs, plumbing repairs, or AC repairs, just to name a few.
Addressing Pre-Existing Conditions
Some people don’t know how pre-existing conditions in home warranties work, but they should. It’s important to realize that home warranties will only cover pre-existing conditions under specific circumstances. If you want to get the most out of your warranty, you need to learn about those circumstances so that you have the coverage you want.
The good thing is there are a few respectable companies that are willing to work with you. They’ll tell you about these circumstances and how you can meet them. For example, you might have to get your home inspected before purchasing. If issues are found, they need to be fixed before the home warranty kicks in. If you do this, more things will be covered by the warranty.
Is Everything Free of Cost After?
It’s important to read your contract before signing, and that’s good advice whenever you have to sign something. The reality is you’ll still have to worry about out-of-pocket expenses after purchasing this warranty. For example, you are probably going to have to pay something every time someone has to come to your home.
The deductible could be as low as $50 or as high as $125. Read your contract so that you know what to expect. If something does need to be repaired, there’s usually a deductible associated with that repair. Now, the amount is significantly lower than what you would have paid, but you should still know this. High-efficiency products or specialty products usually require specialty repair professionals, and that could cost you more, too.
A Different Repair Person World
It should be pointed out that when you purchase a warranty, you are also accepting a new repair person. In this world, you can only work with repair specialists from the company you have your warranty with. If you have been working with a certain repair person for some time, you might not be able to use this person anymore.
Sure, it’s possible your repair person works with this warranty company. You could find out before purchasing the plan if this is important to you. You shouldn’t worry too much because warranty companies only work with qualified specialists. Their vetting process is extensive because they want to make sure each repair is perfect. The last thing a warranty company wants is to pay for multiple repairs.
Eliminate What’s Already Covered
Home warranties can be modified to your needs. Each thing you can eliminate means you’ll be paying less. You can eliminate all sorts of things because they are probably covered.
A lot of homeowners forget that many appliances are covered by the manufacturers for a certain amount of time. If your appliances are relatively new, chances are you’re still covered. All of these items can be removed from the list of items that need to be covered by your home warranty policy. Most of the time, the warranty manufacturers provide is pretty good. They are even willing to replace the items covered.
Now that you know a little more about home warranties, you can figure out what you’ll do next. This could be a smart purchase that’ll give you peace of mind, but you’ll get more out of it if you pay attention to the details.