How to Select the Right Home Warranty When You Are a Homeowner and Why It Matters

Being a homeowner comes with a lot of responsibilities. It’s something to be proud of, but you also need to be prepared. When something goes wrong, it’s your responsibility to make repairs. Those repairs can sometimes be costly, which leaves you in a bind. Investing in a home warranty plan might just protect you when it comes to your hot water heater going out or other unexpected maintenance issues.

Before you just run out and buy the first home warranty package you find, check out this guide to help you select the right one for your needs. We share helpful insight as to why you might need a home warranty policy and useful tips for choosing the best fit. Read more below!

Why You Need a Good Home Warranty

There are a lot of benefits to purchasing a home warranty. The biggest of those reasons is that it can help with large-dollar replacements or repairs as they come up. It can be challenging to come up with a chunk of money, and most home repairs need to be made quickly. Having a warranty helps you be prepared for any scenario.

When you purchase a home, there isn’t always a warning about potential problems. You’re likely going to face some unexpected needs over time. A home warranty is simply there when those issues arise.

Tips to Choose a Great Home Warranty

You know the benefits of a home warranty, but you also need to know just what you are getting. Every home warranty is different, and there will be varying prices for coverage and companies across the board. Choice home warranty prices are known for being very affordable for good coverage, and there are many other top choices with low rates too.

Below, you will find several tips for checking out home warranty packages and making your final selection.

What Are Your Coverage Needs

Think about what you want your warranty to cover and even the dollar amount of coverage. This might impact what policy you go with. If you primarily want the warranty to help with the replacement of things like appliances, then you might be able to get away with a more limited plan. If you want a warranty that covers big problems and issues, this requires a comprehensive plan with higher coverage options.

Think about what you have, the condition of the home, and how much coverage you want to be prepared with. For example, if this coverage is for a newly built home, you likely won’t need as extensive of coverage for big repairs. The same goes for if you have all brand-new appliances. Think about the home and the appliances and systems and determine just where you need your coverage to focus.

What is Your Budget?

Your budget is going to impact the coverage that you choose. You will find a wide variety of plans and price ranges to choose from. It’s up to you to decide how much you can or will spend and the type of coverage in that price range that works. Take the time to do a little bit of research and find plans that meet your needs within your budget.

Proactive research will go a long way. Get several different quotes and compare the details. Prioritize your needs and adjust the coverage as needed until you get the right fit. Use other people’s experiences and even search tools to help you find a great choice in your budget range.

What are the Terms?

There will always be fine print to consider. Before you agree to a warranty, be sure to look through the terms and conditions. Get to know what the policy will or will not cover. When it comes to repairs and replacements, are there exceptions to coverage? For example, maybe your policy won’t cover a new dishwasher but will cover a repairman.

This is just an example to consider. Every policy will have certain limitations or requirements that you will need to be able to work within. Know and understand these details so you can make sure you get the best coverage for your needs.

Know What Isn’t Covered

Set realistic expectations for your coverage. You can’t expect your home warranty to cover every single detail. It’s important to be realistic about what may or may not be covered. Remember that plans may vary, and you may have to increase coverage for certain things. While companies offer several levels of coverage, there are also things that may not be covered by any company.

These are some issues that are often not covered by a home warranty:

• Pre-existing conditions
• Wear and tear
• Structural concerns
• Rust and corrosion
• Manufacturer defects
• Improper installations
• Building zone or code violation
• Commercial equipment and systems

Final Thoughts

Protect your home with a home warranty policy that meets your needs. Take the time to know and understand your options before you settle on a policy. Home warranties can be incredibly helpful when the unexpected happens, but you still need to understand your policy so you can choose what will work best for your needs. Use these tips to navigate the options and find a home warranty that works for you!