A home warranty contract entails coverage for residential homes that covers maintenance and replacement costs of home systems and appliances. It helps to reduce home repairs cost. When purchasing an older home, it is advisable to sign up for a home warranty, especially when buying an older home whose appliances and systems depreciation level is high.
Below are some of the things a home warranty will cover:
- Home appliances such as washing machines, dish wash, and garbage disposal. The refrigerator, microwave, and gym equipment also apply.
- Home systems including air conditioning, electrical systems, and interior plumbing
- Roof repairs and replacement
- Mold growth prevention and removal
A home warranty will not cover minor scratches and dents on various home surfaces or machines. They also have a charge limit. When buying a home with repair and replacement issues that need immediate attention, you may have to wait for the set limit before filing a claim. Sometimes a home seller may offer the warranty to potential buyers to encourage them to buy the houses. Warranty companies also work with real estate agents to enlighten homeowners on the benefits of having a home warranty.
Choosing the best home warranty may seem challenging. We will discuss 3 tips on things to consider before signing a home warranty contract. It will help you save on home maintenance costs and avoid scams associated with home warranty companies.
Things To Consider Before Purchasing A Home Warranty
1. Home coverage needs
To determine the best home warranty for you, first, consider the home appliances and their maintenance procedures and care. Secondly, consider the age of the home appliances and their current condition. These two factors will determine if you will need regular repairs or replacement of the home appliances. Considering the cost of replacement and repairs for appliances will help to reduce deductibles for home warranties. They are also less than the entire cost you may pay for the system’s replacements and repairs. Some homeowners have expertise in repairing home appliances or have friends and relatives who may help fix the home appliances. They may not need a home warranty. But those with no access to professional help in fixing appliances will benefit from signing up for a home warranty.
2. Review various home warranty companies
You should seek recommendations from friends and family members. Some professionals also review various home warranty companies to help potential clients make the right decision. Your realtor can help too. Doing research online is another idea of identifying some of the best home warranty companies. Consider the feedback from existing clients of various companies as it indicates the type of service a company offers. Before you choose a home warranty company, compare and review the following aspects first;
3. Cost
It varies, and most home warranty companies offer three packages; The Platinum, Gold, and silver packages, and that depends on your coverage preference.
4. Review the coverage
Ideal home warranty companies should cover all the home appliances, home foundations, walls, or finishes. But the cost will differ. Depending on the value of your home appliances and systems, the cost of coverage will be high if their value is also high.
5. Contract terms and conditions
The home warranty contract will state the coverage period, charge limits, waiver of coverage in case of poor appliance care and maintenance, or exclude specific parts of a home system or an appliance. Reading the fine print on the contract is advisable to be sure of what the warranty covers.
6. Remodeling plans, care, and maintenance procedures
Remodeling reduces the chances of having to do a repair or replacement on various home appliances and systems. If you plan to remodel your home, you can reduce home warranty deductibles by taking old systems or home appliances coverage. A home warranty covers the repairs and replacement due to normal wear and tear. If you do not do regular home maintenance procedures, the home warranty may become invalid.
Some home maintenance procedures to adhere to are:
- Changing the HVAC air filters regularly
- Unclogging and putting measures to stop clogging of drainage pipes
- Flushing sediments from water heaters
- Cleaning and adhering to refrigerator maintenance procedures
Following such home maintenance care and procedures ensures that your home warranty remains valid, and you qualify for compensation when there is a need for repairs or replacement. A home warranty is essential to help reduce home maintenance and repair costs. If you have other home coverage contracts, you can review the coverage you require to save on monthly deductibles.
