If you have a home warranty, you need to know how to get the most out of your coverage.
Not only should you be aware of the types of repairs you can have covered, but you should also be aware of the limitations and exclusions of the policy.
1. Comparison-shop for policies
Home warranties are not all made equal. When purchasing your warranty, look into the provider’s reputation before examining its coverage levels.
You can ask your real estate agent the same questions if the guarantee is offered to you in conjunction with the sale of a home.
2. Coverage caps and exclusions
Buying a home warranty in Utah is a great way to protect your investment and add to the value of your home. However, before you choose one, you should know precisely what the coverage will cover.
Read the contract and take note of the exclusions.
For example, a plan may not cover a water heater older than two years or a broken window air conditioning unit. It also does not cover items installed after the policy’s purchase or pre-existing damage.
These types of exclusions make sense.
There are also limits on the amount of coverage you can receive for each system in your home. For example, your air conditioning system might have a $1,500 cap on repairs per year.
If this limit is reached, you are required to pay the difference out of your pocket.
Most plans come with a cap on how much you can spend per year for the policy. Understanding is essential, as this will ensure you are not putting yourself at risk by overspending your coverage.
You can find a sample contract online for many top-rated home warranty companies. The best caps are reasonable, so be aware of them.
Once you have a feel for what is covered, you can determine which company will meet your needs. With the proper warranty, you can rest assured that your home is protected and can be repaired in an emergency.
A home warranty can provide you peace of mind and help sell your house. So consider buying one today. Whether it’s for the first time or you’re upgrading your current policy, it’s always a good idea to shop around for the best coverage.
3. First, get in touch with the warranty provider if something breaks
In winter, you have no heating! Why not get in touch with the furnace business right now rather than worrying about getting reimbursed later? Wait a minute.
The repair may not be covered if you hire someone first and then get in touch with the home warranty provider.
Some warranty providers offer round-the-clock assistance, but if the provider keeps you waiting for an eternity or can’t send a technician for a week, you might be in trouble.
Your decision then depends on how much you want your claim to be paid out and how much damage, such as frozen pipes, could happen while you wait.
4. Ask if accepting cash payments is a possibility
Indeed, warranty providers occasionally offer cash in place of replacing a piece of equipment. The money they pay will generally fall short of your replacement cost, which is a drawback.
The plus is that you can select the model and installer of your choice if you have the money.
Shortly after we purchased our current home, our water heater broke, and my home warranty provider provided a $500 check.
We were happy to have the option to upgrade the unit and work with a more reliable plumber than the one the warranty company initially provided, even though our new water heater ended up costing twice as much with installation.
5. Pre-existing conditions may not be covered
Most home warranties do not cover pre-existing conditions. However, there are some exceptions to this rule. The best way to find out if you have pre-existing conditions is to do a home inspection.
Your home warranty company will likely require you to complete a check before the coverage period begins, allowing you to determine whether your home has any pre-existing conditions.
Generally, you must perform a visual and functional examination of your covered appliances and systems. These tests are intended to check for damage and missing parts.
If there is a problem with these items, you will be able to receive coverage.
Another common pre-existing condition is a lack of maintenance. Some companies require that you take action to correct this before you can begin receiving coverage.
Alternatively, you can get a residential service contract covering pre-existing conditions. It is the preferred method because it is more cost-effective and will be a better investment in the long run.
Pre-existing conditions can cause your appliances to fail before you start receiving coverage.
For example, if you have a home inspector perform an inspection and notice a problem with your home, this is considered a pre-existing condition.
But if your home inspector doesn’t detect a problem, your warranty won’t cover it.
A warranty is essential, especially if you live in a remote area with no appliance repair shops to take care of your appliances.
There are many home warranty providers to choose from, so it’s essential to research and compares them before deciding. If you do decide to go with a home warranty, make sure to read the fine print to ensure you will be protected.