Home warranty companies provide an essential service, helping reduce the expense associated with replacing systems and appliances that break down due to normal wear and tear. But these policies have their limitations.
Typically, home warranty plans offer two to four coverage options for systems and appliances: system plans and appliance plans. They also offer build-your-own plans so homeowners can customise their own protection.
Coverage
Home warranties cover the costs associated with repairing or replacing appliances and systems in your home that break down due to normal wear and tear, provided you choose a reputable provider who will send a vetted service provider out to assess and fix it as quickly as possible - though their type and amount covered depends upon which plan is chosen.
Most home warranty providers provide two to four plans, such as an appliance plan, systems plan and combo plan. Furthermore, there is often an option whereby you can select individual appliances and systems to include as coverage in your coverage plan; some also provide add-ons like pools or outdoor sheds for an additional charge.
As you shop around for home warranty providers, be sure to choose a company with at least an A rating on the Better Business Bureau rating scale and carefully read its sample contract. It should outline coverage details such as exclusions, extra fees and maximum payout limits as well as local service provider names and reviews online from previous clients of that provider.
Inquire as well if they work well with local service providers in your community while checking reviews to learn how well their reputation holds up against complaints in that community.
Exclusions
Though home warranties can help to lower repair and replacement costs for household appliances and systems, it's essential to understand their limitations. While these plans cover many items, each provider has coverage limits which determine what percentage of money they'll cover per item - these differ between companies and may be difficult to interpret. You need to make sure to learn what do home warranties cover before you sign the contract.
Most home warranty plans also contain exclusions for items not covered, such as water heaters or furnaces requiring professional repair and replacement services. Furthermore, there may also be limits placed upon how often an appliance or system can be repaired under these plans.
Home warranty providers require their customers to properly maintain the systems and appliances within their homes in order to qualify for coverage under their agreement, with failure resulting in claims being denied and possibly modifications or repairs being performed on covered items without proper authorization from the homeowner being prohibited by their contract. This is an additional disadvantage.
Reviewing a home warranty company's contract documents is the ideal way to understand its policies and coverage, such as an itemised list of covered services, terms and conditions for filing claims and exclusions. Some companies even provide sample contracts so you can familiarize yourself with what to expect before buying one - though these samples won't entirely reflect their final version, they can give an accurate representation.
Claims process
Home warranty claims processes should be carefully considered when choosing a plan. A smooth claims process can reduce unexpected repair costs and help homeowners budget for home maintenance more easily, so it is wise to familiarise yourself with it beforehand in order to avoid surprises or any pitfalls.
Home warranties offer peace of mind against equipment failure by providing service technicians to inspect and repair broken items in the house. Home warranties typically charge a nonrefundable service fee to cover their costs of visiting, with additional documents needed if claims are denied; appeals can also be submitted if this happens.
When selecting a home warranty provider, it is a good idea to read online reviews from local customers to gauge their reputation and reliability. Although many national companies operate nationwide, reading reviews on platforms like Trustpilot or the Better Business Bureau will give an accurate impression of local presence.
In addition, ensure the provider has a strong network of service technicians located throughout New York so they can promptly dispatch a repairman when you file a claim - they should also have 24/7 customer service if available in New York - otherwise move on!
Customer service
No matter the product or service, warranties come standard on everything from phones and cars to homes.
Home warranties provide homeowners with peace of mind in case an expensive appliance or system breaks down unexpectedly; but it is essential to do research into which home warranty companies are reliable before selecting one for yourself; friends and neighbors might also provide helpful recommendations.
A reputable home warranty company should have an exceptional customer service department that's there when problems arise and can provide support if needed.
Home warranty companies generally repair rather than replace appliances and systems under contract, although in certain instances a cash settlement may be offered as compensation. If replacement costs exceed the coverage limit or settlement amount, homeowners will be expected to cover those costs out-of-pocket.
When selecting a home warranty provider, take time to compare plans from different companies and read online reviews from past customers about their experiences with that provider. When making your choice, look for multiple coverage options and customizable plans as well as workmanship guarantees from each of them. Some providers even provide special plans tailored specifically towards veterans.
Homeowners must also pay an additional service call fee when the home warranty company sends out a technician to repair an appliance or system, usually between $75 to $125 depending on the plan they select and company involved.
Further reading: The ultimate financial checklist for buying a home.
