Purchasing a home warranty is a big decision that should be made after careful consideration. A good way to decide is by asking questions of potential providers and reviewing sample contracts. A home warranty for buyers consists of many perks that can help homebuyers ease into the transition of a new home.
Asking the right questions can help ensure a hassle-free claims process and reputable contractors. Here are 7 essential questions to ask before deciding on a home warranty provider.
1. What is the coverage?
Home warranties provide financial protection for homeowners to repair or replace their systems and appliances. They also offer convenience through a streamlined claims process, access to qualified service providers and comprehensive coverage.
Most home warranty contracts include restrictions on what they cover, so buyers should be aware of the limitations before purchasing one. Repairs and damage that are covered by home insurance, severe weather or other events beyond a homeowner’s control are usually not included in a home warranty.
Most home warranty companies charge an annual premium in addition to a service fee each time you file a claim. These fees range from $75 to $120.
2. What is the cost?
A home warranty costs a monthly premium in addition to the cost of any service fees. The price varies by company and coverage. Most companies include basic appliances, home systems and separate structures like guest units, well pumps and sump pumps in their plans. They also offer optional add-ons for things such as refrigerators and laundry machines.
Ask if the company has sample contracts that you can look at. It is helpful to know the terms and conditions in advance of purchasing a home warranty. Some homebuyers choose to have their seller purchase a home warranty as part of the sale, which can cut down on expenses right after moving in.
3. What is the claim process?
Home warranty companies typically have a process for filing claims. It is important to understand how the claim process works before purchasing a plan. This will help prevent unexpected costs from arising, including non refundable service fees.
The home warranty company will then decide whether to repair or replace the item. They may also provide a cash settlement. It is important to know the coverage limit and any exclusions before filing a claim.
Some homeowners have experienced claim denials from their home warranty providers. If you have a denied claim, it is important to file an appeal.
4. What is the waiting period?
Home warranty waiting periods can seem frustrating, but they’re necessary for the protection of homeowners and the integrity of home warranty companies. They prevent fraudulent claims and encourage responsible homeownership.
Without home warranty wait periods, homeowners could immediately file claims for problems they knew about before purchasing a plan. This would lead to inflated repair bills and wasted company resources.
Most home warranty companies have a 30-day wait period. This is to ensure that new homeowners are aware of any pre-existing issues prior to purchasing a home warranty. The only exception is when a plan is renewed.
5. What is the warranty company’s reputation?
The warranty company’s reputation is important, as it determines how much coverage is available and how easily claims are processed. It also affects the cost of the plan. For example, some companies charge an annual premium and service fee for each call, while others offer a flat rate per covered system or appliance.
The best way to evaluate a home warranty company is to read testimonials and reviews. You should also compare costs and coverage limits between several companies and review sample contracts.
6. What is the warranty company’s warranty plan?
The home warranty company’s warranty plan is the contract that states their promise to repair or replace the system or appliance when it fails. Most companies offer several different plans with varying costs and coverage.
The warranty company will send a third-party service provider to your house to diagnose the problem and determine whether or not it needs to be repaired or replaced. The warranty company will then pay for the repairs or replacement. Home warranties do not cover damage caused by natural disasters or other events that aren’t related to normal wear and tear.
7. What is the warranty company’s service plan?
Many home warranty companies advertise their plans as a way to eliminate the stress of maintaining a house. However, homeowners must carefully read and understand the warranties’ exclusions and limits.
Moreover, they must know whether the service provider is reputable. Some national trade organizations have member directories that list providers that follow specific business practices.
In general, the best home warranty providers are transparent and easy to work with. Companies that hide contract details or make it difficult to receive a quote should be
considered red flags. In addition, they should have good customer support.