Because of the large number of home warranty companies and the number of plans they offer, choosing a home warranty should be a thoughtful process. It’s important to know what you need in a home warranty and to choose a warranty with the best details for the price.
The first step is to take a look at your home’s systems and appliances. Think about how old they are and what kind of condition they are in. This can help you figure out what level of coverage you’ll need. If your HVAC system, for instance, is more than 10 years old and nearing the end of its useful life, you might want to make sure you have a plan with comprehensive HVAC coverage. On the other hand, if your appliances are fairly new and still under the manufacturer’s warranty, you might be happy with a plan that offers limited appliance coverage.
Then, with those exclusions in mind, take a hard look at exactly what each home warranty covers. Standard plans usually include the plumbing, electrical and HVAC systems as well as basic appliances such as refrigerators and ovens, but you may have to purchase additional coverage for other items such as your pool, spa or well pump, or pay extra for items like generators and heating systems. Be sure that the systems and appliances that you feel are most important to you are included in the plan. Also pay close attention to exclusions or limitations. Most home warranties do not cover pre-existing conditions, improperly installed items, or routine maintenance issues.
And certainly, the cost of a home warranty should be taken into consideration. Most companies determine the annual premium for their coverage, which ranges from $300 to $600, depending on the amount of coverage chosen. On top of that, you will be required to pay a service fee (or deductible) for each time a technician is sent to your home to repair or replace a covered item. The service fees range from $75 to $125. To get the most value, we suggest weighing the cost of the premium of the service fee against the projected repair and replacement costs.
Lastly, research the reputation of the home warranty company. Customer service is a big part of a home warranty because, to a large extent, you’re at the mercy of the company to send trustworthy technicians and see your claims through to completion. Read reviews and see what the Better Business Bureau says about the company’s rating before making a decision. Choose a company that is known for responsive service and clear communication.
Carefully weigh the needs of your home, weigh your coverage options, and review costs, and you can make a home warranty decision that brings you peace of mind and protects your home’s systems and appliances.
