In most cases, homeowners only consider buying a home warranty when selling their home to cover the major repairs and the replacement of major appliances. The basic home warranty will help to cover the main systems of the home, including plumbing, electrical, and heating and ventilation systems. The warranty company will, therefore, cover for the repairs or replacement of the damaged appliances, which is, of course, an ideal choice if you don’t have the budget to replace them outright. With a home warranty, you really don’t have to call for a repair technician. This is one main reason as to why a home warranty may be beneficial. Once you’ve footed the deductible fee, the warranty company will take care of the rest.
Here are four things to know about buying a home warranty.
- How a Home Warranty Works
A home warranty is an agreement between the homeowner and the warranty company where the latter agrees to take care of both the repair and replacement cost of the home appliances. Replacement only happens if the appliances are malfunctioning.
- Choosing the Right Home Warranty Plan
Of course, you’ll need to have the right plan if you want things to go your way. The following warranty buying tips will help you in making informed decisions.
- Make Use of a Home Maintenance Calculator
The first thing is to find out whether you really need a home warranty policy. The home maintenance, therefore, helps in calculating the estimated cost of repairing or replacing your home appliances and then comparing it to that of the policy.
It’s imperative to make a list of all the warranty companies you know of as well as those suggested by friends and families. This will help you in comparing the rates and service delivery. In addition to this, online reviews will help detect any scams.
- Get the Quotations
After having narrowed down the companies, your next step will involve asking for quotations. It’s important that you know what the company asks for in terms of the annual premiums. This information should be free of charge. The warrant company should also provide a list of the items they cover and those they do not.
- Cost Variations
Home warranty costs may vary from one company to the other. On top of this, it all depends on what you as the homeowner wants the cover for. It’s also important to go through the fine prints as they dictate the worthiness of the warranty. In some countries, there are authorities that help to govern and regulate warranty companies. This helps in controlling the costs as well as shady dealings.
- Home Warranties Are Renewable
Most home warranties will not extend a period of one year. Just like in most insurance policies, you’ll need to renew them if need be. One thing to note, however, is the fact that you may not receive notification that the warranty is expired, this is because not many companies cater to such incentives. It’s up to you to have your facts noted on your calendar.
So, if you are considering including a home warranty in your resale decision, then it’s one of those smart decisions you’ll ever make. It will help to lower so many costs as you transition into your new home.