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Making Sense of Home Warranty Plans


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home warrantyThere are many factors that need to be considered when selecting a home warranty plan. For starters, homeowners need to ask themselves how each plan on the shortlist differs from one another. Home warranty plans typically cover the major appliances in a house and various system components. These include the garage door, the HVAC unit, the refrigerator, dishwasher, the washing machine and/or the tumble dryer. A problem with many home warranty plans is that users don’t know what is covered, what isn’t covered, and how much will be paid out in the event of an emergency.

What are the most important things to look for in home warranty plans?

Unfortunately, there is no blanket strategy that can be applied to all home warranty plans. They differ according to your personal situation. Think of a home warranty plan as an investment portfolio. Some people prefer a stocks-heavy portfolio, while others are inclined towards things like commodities, treasuries, foreign exchange holdings and the like. With a home warranty plan, it’s important to negotiate based on personal preferences. For starters, the appliances in a home are designed to make every day chores easier and automated. These include things like washing machines, tumble dryers, dishwashers, electronic garage doors, air-conditioning systems, refrigerators and the like. Like all things, they are subject to wear and tear. Various home warranty companies try and work certain clauses into their offerings by providing discounts for the purchase of brand-name appliances.

Are there any pre-existing problems with any of the household appliances?

This is an issue that needs to be addressed before purchasing a home warranty plan. Many companies will not insure against appliances that are already faulty. It may be necessary to address these concerns before searching for the cheapest home warranty plans. During your research and inventory of household items, it is important to understand which components have warranties, and which don’t. Remember that many of the household appliances today are complex machines with intricate functions and high repair costs. Whatever home warranty plan you opt for, it should cover the essentials.

How long do you have to wait before you can make a claim with your home warranty plan?

Be advised that the type of plan you opt for may not necessarily cover routine maintenance costs. Conversely, they will certainly penalize you for failing to act and perform the necessary maintenance. The question of whether home warranty plans cover aesthetic or cosmetic damage is debatable. If normal wear and tear caused that damage, it should be covered. However, if deliberate acts caused that damage such as kicking, punching, slamming, or otherwise damaging the item, it will not be covered. When appliances are damaged, the amount of coverage that is provided becomes important. The best home warranty plans offer maximum coverage. It’s important to understand that you will have to wait between 1 month and 2 months on average before you can claim from your home warranty provider. Certain providers have a much shorter waiting period. Experts recommend that users shop around for the most comprehensive home warranty plans, create a shortlist, and then choose the best plan from there.

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