Whether you are planning to move to a new home or you just want to protect your home systems and appliances, purchasing a home warranty can be the best decision you can make as a homeowner because it can save you money, time, and even give you peace of mind. That is if you purchase the right home warranty. It is also advisable to shop around so that you can get the best warranty to help you safeguard your appliances and systems.
But when it comes to a home warranty plan, how can you know that the plan will be worth your money? To determine that, all you have to do is ask the American home warranty company a set of questions.
Here are some of the top questions you need to ask a home warranty company before you sign any contract with them.
What does the home warranty cover?
This is the first question you need to ask the home warranty company. After all, you are purchasing the coverage to help you protect your appliances and systems. Before you even start reading the policies, you need to take a look around your home. Write down a list of all the items that you want to be covered. If you are not sure about the items you want to be covered by your home warranty, remember that a home warranty covers the cost of repairs and replacements of appliances that break down due to age and wear and tear. Of course, you would want to cover items that are:
- Properly maintained, but are approaching the end of their lifespan
- Are expensive to repair or replace, including electrical, plumbing, and HVAC systems
- Are vital for your daily life
After coming up with your list of things you want to be covered, you can now go through the home warranty contract. You can easily compare and download contracts from different home warranty companies via their websites. If the company offers coverage for all the items on your list, you can go ahead and finalize the contract.
What are the limits and exclusions with the home warranty?
It is worth that there are some cases when a home warranty plan may not cover certain situations or items. These are termed as exclusions and limitations. Exclusions are listed as specific items, parts, or situations that the company won’t cover. Limits, on the other hand, are specific monetary amounts that the company will pay up to repair or replace your appliances or systems, but any other additional cost will be the homeowners’ expense.
Companies vary when it comes to limits because some have limits on specific items within a home, while others have limits on all repairs and replacements. Again, other home warranty companies have a limit for all repairs and replacements. That means that if the repairs and replacements of the home go over the amount, the homeowner will have to dig deeper into their pockets to pay for all repairs and replacements. The reason why you should be aware of the home warranty company’s limits and exclusions is because it can help you determine which company is best for your situation.
How much does your home warranty plan costs?
Generally, home warranty companies work the same: the homeowner is required to pay a monthly or annual premium and a service call fee. An annual premium for a home warranty ranges between $300-$800, depending on the home warranty plan you choose to purchase. This amount can be broken up into monthly payments for certain companies.
On top of that, there is an additional service call fee, which ranges between $60-$100. This is the amount of money you pay every time you call the company to come and assess your appliance or system that has broken down.
Who are the company’s contractors?
One thing about a home warranty is that it is the home warranty company that chooses the contractor or technician who will come and fix your appliance or system. So that means that the homeowners don’t have the ability to choose from different providers. However, the home warranty company does not employ contractors, they only partner with local businesses in the areas that they operate.
Ask the company if they vet the contractors or if they are bonded. Of course, you want to work with a company that has licensed and bonded contractors. Experience also matters when it comes to repairing your home systems and appliances. Ask the company about the experience level of these contractors.