Tip #1: Research, Research, Research

Before buying a home warranty, research the company and their coverage options. Check the terms and conditions, including what is covered, what is not, and any exclusions or limitations.

• Avoid companies that charge high premiums for minimal coverage.
• Check if the company offers a free home inspection to evaluate your property's condition before purchasing the warranty.

Tip #2: Understand What is Covered

The terms and conditions of the home warranty will outline what is covered, including repairs, replacements, and maintenance. Make sure you understand what is not covered, such as normal wear and tear or damage caused by pets or accidents.

• Avoid companies that charge for routine maintenance, such as changing light bulbs or cleaning gutters.
• Check if the warranty covers any defects in materials or workmanship.

Tip #3: Review the Fine Print

Read the fine print carefully before signing a contract. Make sure you understand the terms and conditions, including any penalties for cancelling or modifying the warranty.

• Avoid companies that have loopholes in their coverage or exclusions that could lead to unexpected costs.
• Check if the warranty covers any out-of-state damage, such as floods or earthquakes.