What To Ask When Choosing A Home Warranty?

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Published on August 3rd, 2021

A home warranty plan ensures the long-term maintenance of home appliances and systems. Most home appliances companies provide a manufacturing warranty for a limited period.

When the limited warranty period is over, the owners can opt for home warranty services. Also, some home systems such as plumbing units or heating units often come without a warranty. A home warranty plan can make sure all these appliances and systems are running properly.

In case of a sudden breakdown, the plan covers the cost, helping the owner to save extra charges. For all these reasons, American Residential Warranty has become quite popular among homeowners in the USA.

Why Choose a Home Warranty?

A residential warranty is a contract that covers the cost of maintaining household systems or appliances. Home appliances and systems require timely maintenance to work efficiently.

Even if the owner looks after the maintenance, they can break down at any moment due to normal wear and tear. Some appliances and systems such as water heaters, refrigerators, or air conditioners are used daily. A sudden breakdown can lead to a chaotic situation.

To avoid such problems, a home warranty plan is essential. Secondly, a home warranty helps the owner to avoid the high cost of repair or replacement, as the warranty covers most of it. Here are the main reasons for which one should consider purchasing a home warranty.

  1. Save Money: By choosing a home warranty plan, one can avoid paying for the repair or replacement of appliances and home systems each time they break down or malfunction.
  2. Peace of Mind: A home warranty is like a peace of mind that ensures that the home appliances and systems are covered when service is needed.
  3. Convenience: One doesn’t have to go out and look for the right service professional as the home warranty companies send their professionals for the servicing task.
  4. Customization: Since most of the home warranty companies offer customized plans, one doesn’t have to pay for coverage that is not needed.
  5. Free Services: Some home warranty companies in the USA offer a free-of-cost first month or a trial version of the service so that the buyers can decide which plan is suitable.

Who is Eligible for a Home Warranty Service?

Anyone who wants to secure a long life of appliances and home systems is eligible for buying an American Residential Warranty.

However, some home warranty companies mention that one should be a property manager or a homeowner to be eligible for this service.

A landlord who has rented one or more apartments is also eligible for purchasing a home warranty for all rented apartments.

What to Ask When Choosing a Home Warranty?

There are several things to know while buying a home warranty plan. Below are some essential questions one can ask the home warranty company before purchasing a plan.

1. What does the home warranty cover?

When purchasing a home warranty, coverage is the first thing that the buyer considers. So, before making the contract or even reading it, one should ask the home warranty company which items are covered by the different plans.

The buyer can make a list of the items the person wants to be protected and then see if the plan is suitable or not. Most home warranty buyers look for a home warranty plan that covers the following items.

  • Well maintained appliances that are nearing the end of their lifespan
  • Home appliances and systems which are expensive to repair or replace
  • Appliances that are necessary for the comfort of living in a home

2. What are the limits and exclusions of the home warranty?

Almost all home warranty plans have some exclusions or limitations. Exclusions are usually mentioned as some appliances, parts of appliances, or situations that the warranty does not cover.

Limitations are mentioned in the contract as specific monetary amounts that the company will pay. Any excess amount will be the owner’s expense.

Depending upon the company, the exclusions and limitations vary. For example, some companies have limits on specific items, while others have a set limit on all repairs and replacements. Hence, to be prepared for the consequences, the buyer must ask the company about its exclusions and limitations.

3. What is the pricing for a home warranty?

For almost all American Residential Warranty services, the homeowner has to pay a monthly or yearly premium and a service call fee. As the costs vary from company to company, it is crucial to ask the home warranty companies how much they charge.

Usually, the charges vary between $350 and $600 a year. Some companies add a service charge to the owners, which varies from $60 to $100 depending upon the repair. The service charge is usually paid to the contractor when they arrive at the home to diagnose the failed system or appliance.

4. Who are the company’s contractors?

The next question one must ask the home warranty companies is what qualifications their contractors have. Usually, the companies partner with local businesses as their contractors and send them service calls when a homeowner calls in with a problem.

The contractors should be licensed and bonded with the state they serve. It is the responsibility of the home warranty companies to investigate whether their contractors are eligible for offering the service.

5. What are the company’s ratings and reviews online?

Researching about a company’s service includes reading its online reviews. If the reviews are not available online, the buyers should ask the companies to present some authentic reviews and feedback.

· Conclusion:

Asking the above questions can be fruitful while choosing a specific home warranty plan. For many homeowners in the USA, American Residential Warranty has become a service worth investing in.

It not only helps them to save money but also the time and effort of sudden repairs. Regular wear and tear can make the appliances and home systems break down at any moment. It is better to stay prepared for such situations by choosing the best home warranty plan.