Are you thinking of purchasing a home warranty? Here are seven essential questions to ask before making a decision.
Question 1: What is the coverage period of the warranty?
This is one of the most critical factors to consider. Check if your home warranty covers damages and repairs for the entire duration of ownership or for a specified number of years (e.g., 2-5 years). Make sure it also includes any additional services like termite treatment or mold remediation.
Question 2: What is the coverage area of the warranty?
The geographical area covered by the home warranty should be clearly stated. Check if it covers your entire property, including any outbuildings or attached structures.
Question 3: Are there any exclusions or limitations on the coverage?
Some home warranties may have specific exclusions or limitations, such as coverage for certain types of damage (e.g., water damage only) or restrictions on repairs that require labor costs (e.g., replacing a roof). Make sure you understand what is and isn't covered before purchasing.
Question 4: What are the deductibles and co-pays?
The deductible and co-pay amounts can be significant, so make sure you understand how they work. Some home warranties may also have a "total cost of ownership" clause that includes any additional costs for repairs or maintenance.
Question 5: Are there any additional services included with the warranty?
Some home warranties may include additional services, such as home inspection coverage or emergency repair services. Make sure you understand what's covered and what's not before purchasing.
Question 6: What is the policyholder's responsibility for maintenance and repairs?
The home warranty should clearly outline who is responsible for maintaining the property and making repairs. This includes any scheduled maintenance, such as HVAC system replacements or plumbing repairs.
Question 7: Are there any claims submission processes and timelines?
The home warranty should have a clear claims submission process and timeline. Make sure you understand how to submit a claim and when it will be processed.
By asking these questions, you'll be better equipped to make an informed decision about purchasing a home warranty that meets your needs and budget.