How To Compare Home Warranty Plans

When it comes to warranty coverage, each individual home comes with its own set of unique needs. This means selecting a plan that is exactly perfect for your home can be a bit of a tricky endeavor. No two home warranty coverage plans are the same, so if you’re in the market for a new one, chances are you’ll be looking through an endless list of possible choices. It’s easy to get intimidated – especially considering the fact that your ideal coverage changes widely depending on the type of property and situation. For example, if you’re someone who has lived in your home for years, you will need a very different coverage from someone just buying a new home. You get the idea – the point is, if you’re going to choose the right plan for your home, you’ll need to know what to look for when comparing all the home warranty plans out there. Here’s what you need to know:

To choose the right plan, you must first find the right home warranty provider. Don’t know where to begin? No worries, when you’re just starting out it may seem like there are just too many choices to pick from. To help narrow down your possible choices, you can start by reaching out to a knowledgeable realtor – preferably one that you personally know and trust – and ask them what home warranty companies they would recommend. This should give you a more manageable list to work with.

Now that you’ve got your list, all you have to do is let the Google search begin. You’ll need to find out which of those companies offer coverage in your area and get a general feel for the company to see if it will suit your needs. When you start doing your initial research, pay close attention to reviews and make sure they are coming from reputable and honest sources. Also see how each company handles online customer complaints. Do they seem forthcoming with a resolution? Do they offer the type of customer service you would like to receive if you were the customer? Once you get a general feel, you can also request a quote from each company to see their plans and coverage in greater detail.

Hopefully, you will come out of this research more informed, confident and with some idea of your top company choices. But try to still keep an open mind because next you will need to compare the differences in their various plans.

Once you get an idea of your top home warranty companies, you will start to notice the differences in the plans that they offer. Maybe you already have an idea of which type of plan you want, or maybe you’re as confused as ever. Either way, it’s important to follow some basic guidelines to make sure you’re getting the coverage you need.

Let’s say you’re currently buying a home. Generally, if you are in the midst of a real estate transaction you would need to look for coverage that is geared towards homebuyers. You see, plans that are designed to suit a homebuyer will include coverage for fixing or replacing various systems such as: heating, cooling, plumbing, and electrical. They are also generally made to cover appliances like ovens or dishwashers and even things like tune-ups for your HVAC system.

Plans like these are made to give homebuyers their peace of mind when it comes to unforeseen fixes and repairs. Sure, it is always recommended to go through a detailed home inspection before purchasing any home, but even with professional help, it’s hard to know exactly when a system or an appliance will fail or need repairs. If this sounds like your situation, choosing a plan like this will ensure your precious budget (or what’s left of it) won’t have to be spent on repairs and replacements on items that fail from normal wear and tear.

If, on the other hand, you are a current homeowner who is simply looking to change or set up a warranty plan for a long-time home, you will need to look for plans that fully maximize your benefits. These plans tend to fall under two categories. One type of plan generally covers just the systems in your home, not the appliances. The second type will also include all the appliances along with your systems.

Always keep a sharp eye and your budget in mind when analyzing individual home warranty plans. Pay special attention to what systems and appliances you already have and will need to get covered. Also take note of the ones that you do not have. If you, for example, do not own a washer or dryer, you shouldn’t have to pay for a plan to cover them.  On the flip side, you can usually find upgraded coverage for systems or appliances by moving up to a higher coverage plan. This will obviously cost more money. Depending on the company, additional coverage might also be offered for individual appliances or systems that don’t fall under a specific plan.

Pay close attention to information on coverage, this will tell you what systems or appliances will be repaired or replaced by the home warranty in case of failure.  The exclusions are items that will not be covered, so take note of those as well. Some systems or appliances will have financial limits. That means that the warranty will cover a certain designated amount of money, but you will have to cover the rest of the repair cost out of your own pocket.

Whatever coverage you end up choosing, we hope this information puts you on the right track to finding the perfect home warranty plan!