Cause for Concern: What to Look Out For When Buying a Home Warranty
A home warranty can provide peace of mind and financial protection, but there are several factors to consider before making the purchase. Here are six things to think about:
- Cost: Consider the premium costs and whether they fit within your budget.
- Routine Maintenance and Repairs: Will you need frequent maintenance or repairs? If so, choose a warranty that covers these services.
- Coverage Period: How long will the warranty last? Make sure it aligns with your home's age and condition.
- Exclusions and Limitations: Understand what is covered and what is not. Some exclusions may apply to certain items or damages.
- Auditing and Inspection Requirements: Who is responsible for auditing the warranty claims? Are there any requirements for regular inspections?
- Warranty Duration: How long will the coverage last, and can it be renewed or transferred to a new home?
Don't Let Hidden Fees Sink Your Budget
While some home warranties may seem attractive due to their lower premiums, there are often hidden fees and exclusions that can add up quickly. Make sure you carefully review the terms and conditions before making a purchase.