| A home warranty is a policy that covers the | | | | benefit of a homeowner warranty. |
| homeowner for items that are not covered under a | | | | In addition to the ability to reach a representative, |
| typical homeowner's insurance policy. Some of the | | | | confirm that there are repair people in the area. While |
| items that may be covered under a home warranty | | | | this may be understood, many rural areas are not |
| are heating and air conditioning, roofing leaks, | | | | covered by all types of repairmen that are included in |
| electrical and plumbing problems. Some home | | | | the contract, or they may be far enough away that |
| warranties also cover repairs on major appliances, | | | | getting someone to your home quickly can prove |
| such as the washer, hot water tank or refrigerator. | | | | difficult. |
| Home warranties are paid for with an annual | | | | - What limits are included with the policy. It is |
| premium, then, when you file a claim, you will pay a | | | | important that you read your policy carefully. What |
| predetermined service charge. This will cover the | | | | sounds like a good deal when you sign can quickly |
| cost of the repair. Many people like home warranties | | | | become not much of a deal if your policy excludes |
| because they know that they will not have | | | | parts of the home from coverage. Also, ask what |
| unexpected repair expenses, and it makes it easier | | | | may cause a claim to be denied. Some common |
| to prepare a budget. | | | | reasons that a claim may be denied are improper |
| Not all home warranties are created equally. When | | | | maintenance, excessive wear or improper installation. |
| shopping for home warranty coverage there are five | | | | Some home warranty companies also depreciate the |
| things that you should consider before choosing a | | | | value of your home's contents, which means that |
| company. | | | | they will pay less as the odds of needing a repair |
| - The experience of the warranty company. A home | | | | increase. While you may have to settle for some |
| warranty company will not stay in business long if | | | | limits and exclusions, it is important that they are |
| their service is poor, their prices too high or they do | | | | spelled out up front. |
| not deliver on their promises. When choosing a home | | | | - The cost, both annually and for the service charge. |
| warranty company, pick one that has been in | | | | There are two types of payment for home |
| business more than a few years. New companies | | | | warranty service. The first is an annual premium, |
| may try to lure customers in with low prices, but the | | | | which may be paid annually, quarterly or monthly. This |
| savings will not be worthwhile if the company is not | | | | is similar to an insurance policy and must be paid in |
| in business when you are ready to make a plain. | | | | order to retain coverage. In addition to the annual |
| - Whether the warranty is transferable. The home | | | | premium, you will be responsible for a nominal charge |
| warranty should go with the house. Studies have | | | | for each service call that you make. The cost of the |
| shown that homes that have homeowner warranties | | | | service call is normally between 30 and 100 dollars. |
| sell more quickly than the equivalent home without a | | | | This is all that you will owe for repairs. |
| warranty. When choosing a company, ask if the | | | | Home warranties are a good way to save money on |
| warranty will transfer should you sell your home in | | | | what can be costly home repairs. To get the most |
| the future. | | | | value for your money, you need to research several |
| - What type of coverage is provided? When you call | | | | home warranty companies, assess the customer |
| the number provided by the warranty company, you | | | | service and make sure that there is adequate |
| should reach a live person, 24 hours a day, 7 days a | | | | coverage in your area. Before you commit to a |
| week. In addition, they should be ready to schedule | | | | particular home warranty company, read the contract |
| your repair visit right away. If you have to leave | | | | thoroughly and, if possible, speak with some |
| messages and wait for call backs, and then wait | | | | customers to see how easily their claims were |
| days, or weeks, for a service call, all you are saving | | | | handled. |
| is money, and time and convenience are part of the | | | | |