Home warranty companies can be tricky to evaluate, as you should take several factors into consideration when doing so. When examining plans it’s essential to look at plan options, pricing details, service fees and customer reviews in order to form an opinion of what would make a suitable policy provider.
Home warranties may be beneficial to first-time homeowners, especially if their systems and appliances have long outlived manufacturer warranties or nearing end-of-life status. A home warranty can also provide valuable peace of mind for sellers when selling their property. You can learn more about a Cinch Home Warranty solution for Colorado residents.
Peace of Mind
Purchase of a home warranty can bring homeowners peace of mind. Coverage alleviates the stress associated with finding contractors or paying for repairs when something breaks in their house, such as essential appliances or systems.
Before purchasing a warranty plan, buyers should conduct extensive research on both provider and plan. Premiums, exclusions, and coverage options vary widely, and buyers should avoid plans which require them to pay out-of-pocket repairs themselves or do not meet their needs.
Assuming a new home has been constructed, manufacturer warranties should provide adequate peace of mind for appliances and systems installed within it. Furthermore, many warranty providers offer optional coverage add-ons that can be purchased to protect specific items like pools and roofs within your home; this additional coverage can reduce overall warranty costs and ensure only essential items are covered by your plan.
Coverage Limits
Home warranty providers establish coverage limits based on various factors. These could include how often something breaks and what it would cost to replace it.
When you call a company about an issue, they typically send out a vetted service provider who will determine if your concern falls within their coverage and can be fixed. Once confirmed, a service call fee or deductible may apply and then plans will be put in place either to repair or replace any broken items.
Limits help make home warranty services affordable for most homeowners and set clear expectations as to what coverages exist and don’t. Your contract should provide details regarding its limitations; if in doubt about what your limits are, contact your provider or look up sample contracts for guidance.
Exclusions
Some home warranty providers omit certain systems or appliances from coverage, and have set limits on how much financial coverage will be offered per system or appliance – meaning if repair costs surpass this amount, any difference must be paid out-of-pocket by you.
Many home builders provide warranties on their work as part of the sales contract or separately as an independent document, but these usually expire once ownership passes to you. Therefore, it is essential to read this document thoroughly and understand any exclusions or provisions which might apply before accepting ownership of a property.
Meenan suggests getting quotes from several providers and reviewing sample contracts to compare costs and coverage limits. He advises finding a provider who provides online resources with tips and information on selecting plans based on coverage limits, exclusions, claims process etc to find one that meets your individual needs.
Claims Process
Home warranty companies typically have a procedure you must follow to file a claim, so make sure you read your contract thoroughly in order to understand this step-by-step process.
Investigate if the company requires an in-person inspection or third-party evaluation before covering broken appliances or systems, this can help avoid claim denials.
Most companies prefer repairing items instead of replacing them, although there may be circumstances when replacing is more cost-effective for homeowners. Warranty companies usually cover any associated costs; however, any upfront expenses must still be covered by the homeowner.
Reputable companies usually have established appeals processes, but it may be challenging to overturn a decision made by an individual representative. If this is the case for you, consider asking your state’s insurance commissioner or Department of Consumer Protection to evaluate and take legal action on behalf of their actions if any decisions made are found to be inaccurate or unethical.
