Gardening with Allen

How to Pick the Best Home Warranty

Buying a home is one of the largest investments that most people make. Homes are expensive, implying that the homeowner has to pay a huge sum of money to own the home. In USA, the average cost of a home is around $226,800.

It is crucial, therefore, to ensure that you protect your investment adequately. One of the best ways to protect your home is by buying a home warranty. A home warranty gives you peace of mind and helps you to save money in appliance repair and replacement costs.

It is important to ensure that the warranty you pick is the best for your home and meets your needs as a homeowner. One of the best ways to choose the best home warranty is by answering the following questions:

How much does the warranty cost?

Generally, the cost of a home warranty depends on the kind of plan you choose as well as the service provider. There are various plans that consumers can choose. The three main features of the plans include coverage for a specific item, coverage for all appliances, or the plan that covers all the appliances as well as plumbing and electrical works.

The cost of the warranty can also be affected by your location. Home warranties in Washington, for instance, can be a little bit higher as compared to those in the countryside. Generally, warranties in cities are costlier as compared to those in the less urbanized areas.

Do you have existing protection?

It is important to confirm that the appliances you wish to cover have been covered under other plans. Warranties provided by the sellers may cover new and even older appliances. Before you sign up for a plan, check if your appliances are covered under a dealer or manufacturer’s warranty.

Is it clear what the warranty covers?

According to insurance providers, most complaints they receive come from clients who don’t fully understand their coverage plans. Potential clients must go through their warranties’ terms and conditions carefully to ensure they don’t miss something important.

Reading through the policy helps one to understand exactly what is covered. For example, some policies may cover your refrigerator but not the ice maker. Some plans may also not cover the item if it breaks down under certain conditions. For instance, some companies don’t protect items that break down during self-mode cleaning or power surges. In such cases, one has to pay for the repairs out of pocket.

Does the cover repair or replace the broken item?

Most home warranties choose to repair the broken item. However, if the perceived cost of repair is too high, the provider might replace the damaged item. It is also important to note that some home warranties only compensate for the depreciated value.

Companies that compensate for the depreciated value require clients to pay for the difference between the new item’s value and the depreciated value reimbursed. In such a case, consumers may end up spending money on replacing their broken items despite having a home warranty.

It is also important to note that some plans limit how much clients will get in a payout. For example, some companies pay up to $2,000to access, diagnose, repair, or replace the covered item.

Allen Wilson

Allen has been writing about gardening for over 30 years. He is a retired professor of Horticulture.

Comments