Things to Consider Before Buying a Home Warranty 

Home warranties offer peace of mind, but it’s important to know what you’re paying for. Homeowners should be cognizant of the different plans and be sure to look for reputable companies. Sites like https://www.cinchhomeservices.com/faq-library/-/faq/home-warranty-california can provide more information on home warranty services. 

 researching providers through online reviews and the BBB before committing. 

You should also consider who the provider’s local contractors are and how they vetted them. Additionally, you should read the contract to see what limitations and exclusions are included. 

Cost 

With home buying costs being high — especially if you’re purchasing an existing house — paying for a warranty seems like a smart investment. However, you must weigh the pros and cons carefully. 

The cost of a home warranty typically includes an annual premium and service fees for repairs. The premium varies by provider, as do coverage options and cost caps. 

Before deciding on the right policy for you, it’s important to get quotes from several home warranty companies and compare coverages. You should also read sample contracts to see what’s covered, and how much is capped. 

The decision to buy a home warranty can be beneficial for first-time buyers who lack knowledge of home maintenance or owners with expensive or older appliances and systems. Similarly, the policy can be useful for sellers who want to limit out-of pocket repair and replacement expenses or attract buyers in a tight market. However, homeowners who are careful to evaluate their needs and budget may find that a home warranty isn’t necessary. 

Coverage 

If a home warranty sounds like the right option for you, compare multiple providers’ plans to find one that suits your budget. Look for a clear contract that describes standard coverage, optional coverage and exclusions. 

You can also ask a home warranty provider how it selects its contractors, which should help you determine whether you’ll get reliable service. Ask whether the company has a reputation for customer satisfaction, and how long it takes to resolve a claim. 

It’s worth asking about the home warranty company’s deductible and whether you can transfer or terminate the contract before you sell your home. You can also ask if the company offers special discounts or promotions. You may also want to ask about any automatic renewals or price increases, which can add up over time. Also, check the provider’s BBB rating to see what other customers have said about them. If there are many negative reviews, you might want to steer clear. 

Exclusions

Just like you shopped around to find your new home, you should also shop around for the best home warranty. Many warranties have hefty exclusions and may limit how much can be spent on a repair or replacement. Some providers may even refuse to honor a claim that was caused by improper maintenance, or if the appliance or system was in need of replacing before the policy took effect. 

Read a company’s fine print and look at customer reviews to get a better idea of what to expect. Be wary of glowing testimonials on a provider’s website, and check the BBB to make sure the company is well-respected. 

Ask the home warranty company how they source their contractors and whether they have a specific vetting process for vetting technicians in rural areas. You should also find out how a provider handles disputes and complaints, and whether there are any limitations on claims or how long the contract lasts. 

Flexibility 

A home warranty can help if you’re moving to a new house. Ask the seller what appliances and systems are under manufacturer or builder warranties, and how long those warranties last. Then compare those terms with a home warranty’s pricing and coverage details. 

Home buyers should also be sure the provider has an established network of service technicians and does a thorough vetting process before hiring them. That may prevent them from being billed for repairs that don’t occur. 

Finally, home warranty providers sometimes include wiggle room in their contracts that allows them to deny payouts for legitimate claims. This can make the whole idea of a home warranty less valuable. That’s why Consumer Reports recommends putting any money you would spend on a home warranty into an emergency fund. That way, you can avoid paying a premium that doesn’t save you money in the long run.