Whether you have recently purchased a new home or remain worried about the upkeep of your existing abode, a home warranty can address and resolve your concerns regarding ongoing costs. Since these types of policies give you financial coverage against multiple maintenance issues, they remain a staple for prudent homeowners.
But as essential as a home warranty can be, its purchase process can often get confusing. With seemingly similar providers but vastly different coverage options, picking the right policy can feel like a demanding test.
With that being said, knowing what to do can turn the challenging process into a walk in the park. To help you along the way, here are 5 things to know about buying a home warranty.
1. Not All Home Warranty Offerings Are the Same
Similar to how there is a difference in the value of home remodeling projects, there is a distinction between various home warranty offerings. Some of these policies only cover a limited number of appliances, while others extend their coverage to more home fixtures. A few of them also support outdoor property, but others stay away from this additional solution.
Keeping this in mind, make sure to look through various options to find the best home warranties for your specific needs. This step not only provides you with highly supportive warranty solutions, but also lets you categorize them with the type of spaces and fixtures that they cover.
2. Be Mindful of Additional Charges
Many home warranty providers offer different price points for their solutions. This means that you can often find options that come at highly accessible rates. But it’s important to learn that such rates only give you the essential coverage for your home.
For instance, competitive quotes may give you coverage for all of your basic home appliances. But support for fixtures such as your built-in pool or septic pump may come at an additional fee.
If your home has elevated needs, keeping this tip in mind lets you shop wisely. In case you use a home budgeting app, you can factor in these potential costs for a clearer picture.
3. Steer Clear of Comparing Apples and Oranges
While you are searching for information on how much a home warranty costs, you need to remember the above points regarding the distinction between offerings. This saves you from comparing apples and oranges, while also letting you leave behind those policies that offer very little value for their price.
This means that you don’t have to categorize different vendors by simple pricing labels. Instead, you need to see the complete list of items that they cover for each available package. Similar to using a discount shopping app, you can then compare the price you will pay against the services you are going to receive.
4. You Will Still Need Home Insurance
It is easy for first-time homeowners as well as novice home warranty purchasers to have questions regarding home insurance and its relation to warranty coverage. Simply put, many home insurance policies kick in after unforeseen events such as theft, fire, and natural disasters, whereas home warranty covers ongoing breakdowns.
Home insurance usually covers the replacement cost of your structural property, furniture, and personal effects. But home warranty delivers repair and replacement coverage for fixtures such as appliances and home devices.
As a result, if you plan to buy a designer couch as well as a digital dishwasher and want to have financial coverage for both, you need insurance and warranty at the same time.
5. The Solution Is Available at a Yearly Plan
When you want to buy a home warranty as a part of following essential home maintenance tips, it is imperative to learn the pricing structure of these policies. For what it’s worth, it is not difficult to understand: While home warranty providers show their packages in a monthly structure, they are typically billed annually.
Being aware of this small yet important distinction ensures that you are not surprised at the time of making your purchase. Knowing that your choice will remain in effect for the whole year also helps you make an informed decision when picking a suitable provider. As a result, you can safely choose a company that you feel comfortable dealing with.
Keeping these points in mind allows you to find the right home warranty policy for your needs. In turn, you can stay financially secure in the knowledge that if your covered property faces any breakdowns, help will just be a call away.
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