A home warranty should be tailored to your home. Before you lock down a company, it’s crucial to do the following:
Solidify Your Budget
On average, home warranty plans cost between $300 and $600 annually, and you should expect service fees ranging from $50 to $150, depending on the company and your chosen plan. It’s important to feel confident in your financial commitment on a monthly and yearly basis.
Assess Coverage Needs
What do you need coverage for in your home? Some people may only need coverage for appliances, like washers and dryers, or systems like HVAC and electrical, while others may want both. Get a clear picture of the items covered in each home warranty plan you review.
Read Reviews
Search each home warranty company on sites like the Better Business Bureau, Yelp and Google to get a sense for how current and past customers feel about the business. Search specifically for local reviews and those that mention the specific issues you want to cover.
Obtain Multiple Quotes
Once you narrow down your choices to a few home warranty companies, you’ll want to reach out for quotes from a few different companies. This will help you compare costs as well as what is included in each plan.
Review Contracts and Terms
Obtain a sample contract for each provider and read the fine print to ensure you understand everything. Each home warranty provider outlines its coverage restrictions in the fine print. For example, a home warranty company may offer up to $3,000 for HVAC repairs throughout your contract period.
There may also be other restrictions or policies to note in these sample contracts too, such as coverage for pre-existing conditions, whether you choose your own technician, typical response times, any workmanship guarantees and if you’re subject to any cancellation fees.
Understand the Claims Process
A home warranty company becomes important when an issue arises. Inevitably, you’ll have to make a claim, so it’s pivotal to research a company’s claim process before signing on. Some companies offer mobile apps that simplify making a claim, while others allow online submissions. Separately, you should ask each company you speak with about their average response times from putting in the claim to solving the issue.