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What to Look for in a Home Warranty Contract

If you’re thinking about getting a home warranty, it’s essential to understand what to look for in a contract. A home warranty is a great way to protect your home’s major appliances and systems. It can help you decide whether the plan is right for you. It can also save you money on repairs.

Coverage

The coverage provided by a home warranty contract depends on several factors, including the age of your house and its square footage. It also depends on the level of protection you desire and the price you’re willing to pay. Typically, home warranties cover major home systems and appliances like the electrical system, HVAC system, plumbing system, refrigerator, oven, dishwasher, and washer and dryer. Depending on your chosen plan, they may include optional coverage for large items like pools and spas or smaller appliances. One of the most significant benefits of a home warranty company in Nevada is that it helps to cover repair costs when your primary home systems and appliances break down, which can be an expensive surprise. But before signing up for a home warranty, you should know what to look for and what limitations to watch out for. You should read the policy carefully, especially the fine print. It’s essential to understand what is and is not covered by a home warranty and the service call fee and payout limits. The best home warranty contracts provide broad coverage and low premiums. In addition, they’re easy to understand and offer several customizable add-ons. You’ll also want to find a provider with a good reputation for quality repairs and customer service. Check out consumer review sites and national trade organizations to understand a company’s reputable status.

Exclusions

A home warranty contract has its fair share of exclusions. These are often a source of frustration to homeowners and can cause the claims process to go sideways. Some exclusions are self-explanatory, while others are a bit more complicated. For example, a warranty contract may mention that coverage is not provided for the remote control on a garage door opener or an appliance. Other exclusions include structural issues that aren’t covered by a typical warranty. For instance, a leak in your roof is unlikely to be repaired by a warranty company. While this may be true, a home warranty can help you avoid a costly repair or replacement. It can also save you the hassle of calling a plumber or HVAC contractor to fix a broken system. In addition, most warranties will set limits for repairs and replacements. These limits are designed to protect the company from excess losses. For example, a home warranty company might set a limit of $500 on one appliance or the total amount it will pay out per item in a year. This way, it can balance the costs of providing warranty services with what it needs to earn money from homeowners. It also helps to eliminate overlapping coverage. This makes the policy a better deal for everyone involved.

Fees

The fees charged by a home warranty contract are an essential part of the policy’s overall cost. They include the premium, service call fees, and deductibles. These fees vary widely among home warranty companies and plans, depending on the type of coverage you choose and various other factors. The cheapest way to pay for a home warranty is to make a lump-sum payment when you purchase the policy. This is typically about $50 to $100 per year, less than paying monthly or starting a payment plan. However, the warranty cost can also increase when you select add-ons to cover more items or to add coverage for things your contract does not include, such as pools and wells. These extras can sometimes add up to hundreds of dollars each month. When deciding which company to purchase your warranty from, look for companies that offer generous dollar caps and low premiums. It’s also important to read your contract carefully and note any exclusions or limitations. Often, homeowners get their warranties through real estate agents and title companies that earn commissions when they recommend home warranty contracts. This is a conflict of interest, and it sometimes needs to be clarified that the agents or title companies have a financial stake in the home warranty contract.

Limitations

Home warranty companies are all about risk reduction, so setting limits is the best way to keep your premiums in check. The most important limitation is the number of yearly repairs or replacements for your covered systems and appliances. You’ll also want to watch for a good deal on a service contract, such as a multi-year plan or bundled package. The most reputable companies are happy to oblige and may offer you a free quote. If you’re looking for the best deal on a home warranty, use our free quote finder to help find your perfect match. Most major carriers offer a variety of coverage packages, so shop around for the most comprehensive and cost-effective option. The most important thing is understanding your opportunities and the potential pitfalls before making final decisions.

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