The Ultimate Guide on How to Shop for a Home Warranty
If you’ve just become a new homeowner, or if it's just time to renew your current home warranty, you've come to the right place! A home warranty is an essential investment for every homeowner. However, it's important to know how to shop for a home warranty because there's no one-size-fits-all solution. Every homeowner has unique requirements, and choosing the wrong home warranty can be a costly mistake. In this guide on how to shop for a home warranty, Heather Thurber dives deep into the process so that you can make an informed decision.
Understanding Your Home Warranty Options
Home warranty options provide homeowners with a level of financial protection against unexpected repair or replacement costs for various household systems and appliances. These warranties typically cover items like heating and cooling systems, electrical and plumbing systems, appliance coverage, and more. Homeowners can choose from different warranty plans based on their needs and budget, with options ranging from basic coverage for essential systems to comprehensive plans that include a wider range of items. When a covered item breaks down or malfunctions, homeowners can file a claim, and the warranty provider will arrange for repairs or replacements, often for a fixed service fee.
Research and Reading Online Reviews
The internet is a vast resource for finding information on practically anything, including researching home warranty companies, as The Real Estate Insider shows. Use trusted review sites to find reputable home warranty companies. Reading reviews from other homeowners can give you an idea of what to expect with different companies, and it's always a good idea to read both positive and negative reviews. It's essential to pay attention to recurring experiences with each company.
Comparing Quotes From Multiple Companies
Now that you have a few companies in mind that interest you, it's time to get a quote from all of them. Most companies provide quotes online, but it's always good to speak to a representative over the phone or via email. Let them know exactly what you need coverage for and what you'd like to exclude. Go through each quote thoroughly and pay attention to the fine print, including coverage caps, per-claim costs, deductibles, service fees, and exclusions.
Looking for Protection Against the Builder's Liability
A common issue homeowners encounter is with the builder's liability. Sometimes builders don't do a perfect job, and issues arise after you've moved in. Home warranties that offer protection against the builder's liability can save you from the hassle of trying to get the builder to correct the problem. Make sure to specifically ask each company if they offer this type of protection.
Reading the Cancellation Policy
While finding the right home warranty company is essential, Top10.com notes that it's equally as important to know that you can cancel a home warranty. Most home warranty companies have a minimum contract length, but it's always good to know what the cancellation policy is. Most companies will not refund your payment if you cancel, but it's useful to know if there are any cancellation fees or penalties.
Comparing Multiple Plans Side-By-Side
With a wide variety of home warranty plans available, it can be overwhelming to choose the right one. However, comparing multiple plans side-by-side can be a game changer. By doing this, you can easily identify which plan covers the appliances and systems you need most while also weighing the added benefits of optional coverage for things like pool and spa systems or well pumps. It's important to make an informed decision to ensure that your home is properly protected, and taking a comparative approach is the way to go.
Get a Home Inspection
When shopping for a home warranty, getting a home inspection first is a smart move. An inspection provides a detailed assessment of your home’s current condition, identifying any pre-existing issues that might not be covered by the warranty. This ensures you select a plan that meets your needs and avoids surprises down the road. With a clear understanding of your home’s systems and appliances, you can choose a warranty that offers the best protection, tailored to your specific situation.
Budgeting for Your Remodel
Once you have your warranty, budgeting for your home remodeling project is crucial to keeping your plans on track and avoiding financial stress. Start by estimating the costs of materials, labor, and any unforeseen expenses, then set a realistic budget that includes a contingency fund for unexpected issues. Prioritize your needs and wants to ensure that the most important upgrades are covered first. By planning and sticking to your budget, you can achieve your remodeling goals without overspending or compromising on quality.
In closing, shopping for a home warranty is an important decision, but it doesn't have to be complicated. Remember to research and read online reviews, compare quotes from multiple companies, pay attention to exclusions, look for protection against the builder's liability, read the cancellation policy, ask questions upfront, and compare multiple plans side-by-side. Now that you know how to shop for a home warranty, you can save yourself money and hassle in the long run!
If you’re looking for a trustworthy and knowledgeable realtor, call Redwood Empire Realty today at 707-344-9944
