What to Look for in a Home Warranty

Home warranty coverage can be a great way to protect your budget against expensive home system and appliance failures. However, a home warranty isn’t an insurance policy–it’s a service contract. It provides repair and replacement service on a home’s major components (such as heating, plumbing, and electrical) and appliances.

So how do you know if a home warranty is right for you?

• Are you on a tight budget? A home warranty can provide reassurance by protecting your pocketbook. With a home warranty you can rest easy knowing that if a covered appliance or system breaks, you’re covered.
• Are you selling your home? A home warranty can be a great way to help make your listing stand out against the competition.
• Are you buying a brand-new home? If so, your builder may provide you with a home warranty for the first year. Many home warranty companies also offer special warranties for new homes. Check with your builder or real estate agent.
• Are you buying a previously owned home? If the home you’re buying is not brand new, a home warranty is a great way to keep your likely over-stretched budget from breaking. With expensive appliances systems near or past their life expectancy, a home warranty might be a good idea.

Here are some tips to help you choose the best home warranty:

• Basic plans often cover major home systems (heating, plumbing, electrical, kitchen appliances, and so on), while enhanced plans can add coverage for air conditioning, refrigerator, washer/dryer, and more. If your home has systems such as a pool, or septic system or well, look for home warranty companies that also offer these coverage options.
• Look for a home warranty that offers multiple plans and customizable coverage that can meet your individual needs.
• Available coverage typically varies by state and region for most home warranties.

• Look for a warranty that does not have age restrictions on covered appliances or systems.
• You should understand that not everything is covered by a home warranty, for example, small appliances like toaster ovens and mixers are not covered. Nor are some structural modifications to your home. Make sure you read and understand your contract.

• If your heater fails at 9 p.m. on Friday night you aren’t going to want to wait until Monday morning to place a claim. Some service providers have Saturday service so make sure you can request claim service around the clock, either online or by phone.
• Make sure you choose a home warranty that allows unlimited service requests during your contract.

• A good home warranty will cover appliances and systems regardless of age or make/model.
• A home warranty should replace your covered items if they cannot be repaired.

Having a home warranty can take the stress and hassle out of repairing or replacing home systems and appliances when they break down. Your home warranty company will also provide a contractor, saving you the time and energy of having to track down the right tradesperson for your needs.