If you're considering a home warranty, it's wise to research companies and request quotes. Look for a company with a good reputation and solid customer service. You should also read sample contracts on the company's website to check coverage limits and terms. Home warranty companies in New Mexico may differ from warranty companies in Colorado, so know the coverages and exclusions.
- Not Doing Your Research
It's a good idea to check online reviews and ratings before purchasing any home warranty. Word of mouth or referrals will be a great way to get an idea on the company you may want to purchase from.
A homeowner should also consider the items that are covered by each plan. It's important to make sure the policies include all necessary systems, including plumbing, electrical and HVAC, and to review the contract to see how many years of coverage each policy has.
Home warranties can help consumers protect their financial goals by allowing them to use money that they would otherwise put toward unexpected repairs as an investment in their home's value and future. However, a buyer should carefully consider whether the benefits of a home warranty will justify the cost when compared to other available options, such as an emergency savings fund.
- Not Reading the Fine Print
Home warranties are often offered when selling a house, and they can be beneficial for homeowners who want the security of knowing that certain appliances and systems will be covered. However, they can also be a waste of money if the contract is poorly written or if the company denies legitimate claims.
When shopping for a warranty, be sure to read the fine print carefully and compare prices. You should also ask for testimonials and complaints, check the Better Business Bureau ratings and reviews and poll friends and family to see what their experiences have been like with specific companies.
Purchasing a home warranty may seem expensive at first, but it can save you money in the long run by protecting you from costly repairs. If you do your research and choose a reputable provider, it will be worth the investment. Ideally, your policy will also include a clear contract with clearly defined terms, conditions, clauses and exclusions.
- Not Having a Plan in Place
When home buyers consider a warranty plan, they need to consider the price of the
annual premium and any deductibles or fees that may be charged each time an appliance or system is repaired. Home warranties also can cost a lot to cancel.
Home buyers should choose a provider that offers a transparent contract with well defined terms, conditions and clauses so they can feel comfortable making a decision. High-pressure sales tactics and a refusal to answer questions should be red flags.
Additionally, buyers should find a home warranty company that offers sample contracts for them to review. These samples won’t fully reflect the final contract, but they can provide an idea of what to expect. They should also ensure that the company has a good reputation and works with reputable contractors. Otherwise, they could end up with a warranty that doesn’t provide much value.
- Not Having a Maintenance Schedule
A home warranty is not a replacement for maintenance, but it can help cover unexpected costs and prevent major repair bills. When choosing a company, consider the price you are willing to pay and what other people have said about their experience with the service.
Some companies include a free annual plan in the homebuying process or offer plans for a low monthly rate. You should also check whether the company has a network of technicians or allows you to choose your own contractor. A reliable home warranty provider will ensure that any technician they dispatch to your home is licensed, insured and professional. Cheap labor results in cheap fixes that don’t last, so choose a provider that values quality and doesn’t use subpar contractors.
Be wary of providers who use high-pressure marketing tactics to encourage you to sign up for their plan quickly. This is often a sign that you won’t be getting the best service or value for your money.
Also, check for exclusions like excessive wear and tear or pre-existing conditions.Many homeowners would recommend purchasing a home warranty to save you from the headaches of costly repairs and hiring reputable contractors. It is recommended that all warranties be read thoroughly so you know what it is you are buying.
