Home warranties protect you against the relatively frequent repairs and replacements of the major appliances and systems in your home. Like all forms of insurance, the major considerations for choosing the appropriate policy rest with your budget and the level of risk you are willing to accept. If you know the general condition of your major systems, what they are made of and whether they are covered by an existing warranty or service contract you will make a better decision regarding home warranty coverage.
Huge points for Transparency
This company is one of the few that will actually show you the terms of the contract right on their website. They warn on the very first page that “It is important to understand that a home warranty is not the same as homeowner’s insurance. In fact, warranties exclude coverage on any damage to the homeowner’s insurance. Also, they are not designed to cover pre-existing conditions or to remedy building code violations.
Gather Your Records and Know Your Existing Warranty Status
Try not to let the language in the terms of agreement sections dissuade you – any warranty you are going to purchase is worth reading all the way through so there are no surprises. The terms of most service contracts include charging you for the service call. This functions to make sure that you don’t call them for every little problem you have with the stove, etc. Check the age and warranty status of any system you might consider covering to avoid duplicative coverage. As you buy a home, it is important to ask how old the various systems are so that you can make an assessment of how long they will last and when they may need replacement. A home warranty service can make a great deal of sense if you feel like your house is due for some major system overhauls soon. Most warranties are short term contracts, so timing is very relevant.