What is a Home Warranty?
A home warranty is a contract between you and an insurance company that covers maintenance and repair costs for your home. It's usually paid upfront, and the coverage period varies from company to company.
6 Things to Consider Before Buying a Home Warranty
- 1. Check the Coverage Period: Make sure you understand how long your warranty covers maintenance and repair costs. Some companies offer extended coverage periods, which can range from 12 to 24 months.
- 2. Review the Policy Terms and Conditions: Understand what's covered, what's not, and any limitations or exclusions before purchasing a home warranty.
- 3. Compare Companies and Prices: Research different companies to find the best value for your money. Some companies offer discounts for bundling policies with other insurance products or loyalty programs.
- 4. Consider the Deductible and Payment Terms: Understand how much you'll pay upfront, and what's covered under the deductible. Some companies have high deductibles or require payment within a certain timeframe.
- 5. Think About Additional Services: Many home warranty companies offer additional services like appliance installation, HVAC maintenance, and pest control. Consider whether these services are included in your policy or if you need to purchase them separately.
- 6. Check the Company's Reputation and Ratings: Research the company's reputation online, read reviews from other customers, and check their ratings with independent organizations like the Better Business Bureau (BBB) or the National Association of Insurance Commissioners (NAIC).