Most new homeowners are overwhelmed with the responsibility that accompanies their new property. One of the first things on their to-do list is to purchase insurance, but they may not be aware of another type of coverage that can be just as important – a home warranty. Real Estate Daily News shares a quick guide to home warranties and why they are essential to every homeowner.
What Is a Home Warranty?
A home warranty is a service contract that covers the repair or replacement of major home systems and appliances that break down due to normal wear and tear. Home warranties are not the same as homeowners insurance, which covers damage caused by events such as fires, floods, and storms.
Why Purchase a Home Warranty?
- Save Money: Without a home warranty, homeowners would have to pay out-of-pocket for any repairs or replacements needed for their home systems and appliances. With a home warranty, you can save money on covered repairs and replacements.
- Peace of Mind: Homeowners can feel confident knowing that they have a home warranty in place in case something goes wrong with their home.
- Convenience: Home warranty companies will send a qualified technician to your home to fix any covered item, so you don't have to worry about finding a reputable repair person yourself.
How to Choose the Right Home Warranty
Coverage
The first step in finding home warranty companies in Arizona is to determine which systems and appliances you want to be covered. Some home warranty companies offer different coverage plans, so you can pick and choose which items you want to include. You should also consider the type and age of your systems and appliances. Before moving in and making your purchase, check the home inspection report for any red flags and take note of the existing warranties.
Caps
Home warranty companies often place limits on how much they will pay per repair or replacement. Be sure to ask about coverage caps so you know how much you would be responsible for if something major broke down.
Pricing
Home warranty coverage typically costs between $250 and $600 per year. When considering pricing, be sure to get quotes from multiple home warranty companies to compare. This will allow you to compare pricing and coverage to find the best option for your needs.
Customer Service
You want to be sure to choose a home warranty company that has responsive and helpful customer service. The last thing you want is to be stuck with a company that is difficult to work with when you need to use your coverage.
Reputation
Another important factor to consider when choosing a home warranty company is reputation. Be sure to do your research and read reviews before making your final decision.
Fine Print
Read the fine print in any home warranty contract before making your purchase. This will ensure that you understand the coverage and what is excluded from the policy.
Claiming From Your Home Warranty
It's important to keep records of all your home appliances and systems, as well as their make, model, and serial number. When something goes wrong, the home warranty company will ask for this information so they can send the right technician with the right parts. You should also organize your home warranty policy documents digitally so they're easy to access if you ever need to make a claim.
The right home warranty can save you a lot of money and headaches down the road. Be sure to do your research and choose a reputable company with a coverage plan that meets your needs. This way, you can rest assured knowing that your home is covered if something goes wrong.
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