Published: March 1, 2018
5 Tips to Consider When Shopping for a Home Warranty
Hint: Cheaper Isn't Always Better
When it comes to buying a new home, there is a lot to consider. One such major line item to keep in mind is whether or not to purchase a home warranty, which includes comparing home warranties and home warranty companies to find the best one for you and your new home.
Before making the final decision on a home warranty plan, consider these top five tips when shopping for a home warranty:
1. Remember, buying a home warranty is not the same as purchasing homeowner's insurance.
This is one of the most common questions for curious home buyers. Aren't these the same? Home warranties, or home service contracts, cover what insurance policies won't cover, like when issues with the plumbing comes up or when a refrigerator stops working...unexpectedly. To read more about the differences between home warranties and home insurance, check out: https://comparehomewarrantyquotes.com/home-insurance-vs-home-warranties.
2. Evaluate the likelihood of you choosing to use the home warranty.
When comparing home warranty quotes and comparing home warranty companies, understand the certain restrictions and specific limitations. Making sense of how a home warranty can benefit you, your family, and your home will make better financial sense if you know the ways your coverage keeps you, well...covered.
Keep in mind that when purchasing a brand-new home, items and appliances stocked inside are likely still somewhat covered by the manufacturer's warranty and/or the builder's warranty itself – an important consideration to keep in mind when determining whether or not to purchase a home warranty plan.
For an older home, a home warranty makes a lot of sense, as the systems and appliances within the home have most likely already seen their fair share of wear and tear throughout the years, and you never do know when they will breakdown.
3. Do your homework and a little cost-benefit analysis.
Just how much will my home warranty cost? The best way to compare home warranty quotes is to compare actual home warranty plans. Cost will depend in large part on the type of plan and the home warranty provider. To determine the best deal, and to factor in all of the stipulations of each plan, we recommend conducting a side-by-side comparison of home warranty plans and providers in your new neighborhood.
To start this comparison, enter your zip code here and start comparing home warranty quotes: www.comparehomewarrantyquotes.com. When comparing home warranties and comparing home warranty companies, a simple and general rule of thumb, although this varies depending on the home and individual circumstances, is to find a type of plan that covers what you think you might need coverage for most: home warranty coverage for one specific appliance, for every appliance, or for your appliances and your plumbing and electrical systems.
Buying a home warranty does not mean you won't ever have to pay out of pocket again. Co-payments for contracted repair work will still need to be paid – no matter the plan – and these costs can vary, making it another important factor to consider when purchasing a home warranty plan.
4. Make sure you understand every aspect of your home warranty.
You're not alone if you're signing on the dotted line and hoping it will all "work out," but don't make this mistake. The vast majority of home warranty customer complaints generally stem from people not fully understanding their coverage. Read the terms and conditions. If the print is too small and cumbersome, it can be worth it to contact a legal advisor to take a look at it with you.
After a thorough read-through, the small inconsistencies, yet important details, will be apparent. For example, some home warranty polices may cover refrigerator repair, but they may not cover a repair to the ice maker, which can cause some serious frustration when that's what you need repaired.
5. Lower cost home warranty options don't guarantee affordable rates later on.
In the end, cheaper home warranties may look appealing, but these home service contracts do not always equate to a cost savings. Depending on the variance in charges for service fees and things like the limit in the number of allowable claims per year, you may end up shelling out less money when you sign up and spending more money later on.
As you compare home warranty quotes and companies, remember: More affordable home warranties up front may not ultimately end up being more affordable later on.