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