Deciding on what home warranty plan to buy can be a difficult decision. There are so many factors to consider. No two home warranty plans are the same so it’s important to do your homework to find a home warranty plan that meets your home’s needs. Here are a few things that should always be considered:
Availability
Not all home warranty companies cover all 50 states, so you’ll want to find a company that not only covers your state, but also offers the type of plan that you need. For example, if you reside in a rural area or remote location, make sure a provider can supply a service provider in your area. Also, find out if you are able to use your own technician if your provider doesn’t have one in your area.
Just because a company doesn’t cover all 50 states doesn’t mean you should not consider them. Comparison shop, ask for quotes, check out customer reviews and look at the reputation of the company before making your decision.
Covers Your Home Appliances and Systems
Getting a home warranty plan for the sake of just getting one is not enough. Some home warranty plans cover items that don’t necessarily apply to your home. They also offer different coverage levels, so it’s important to choose a company that offers warranty plans that cover everything that’s important to you.
Most plans will cover heating and air conditioning systems, water heaters, electrical systems, plumbing and major appliances and some may have separate plans for systems and appliances. Most will have add-on options for other items you may want covered. Make sure to find the plan that works for you.
Response Time
You are paying good money for a home warranty plan so you want to make sure that, should any issues arise, you are with a company that has a fast response time. Response time can range from anywhere between 24 to 48 hours and sometimes longer. There are a few companies that may even respond within 24 hours.
Homeowners should find out ahead of time the process to file a claim and what the turnaround time is, should an appliance need to be replaced or repaired.
Service Fees
The majority of home warranty companies will charge a service fee. This can vary widely and can be different depending upon a particular plan or level that you choose. Service fees can range from $50 to $150. Usually one service fee is per each repair or replacement service. These fees are usually expected at the time of placing the request or when the service is being done.
Home warranty companies typically have a workmanship guarantee to safeguard homeowners from extra fees when a contractor doesn’t repair the problem the first time.
Monthly Cost
The monthly premium is the cost of the selected coverage plan. How much you pay depends on things like the plan and company chosen, specific coverage in the plan, location and square footage of the property, service fees and more. Most companies have the option of paying on a monthly basis over the life of the service contract.
Reputability and Customer Reviews
The reputation of a company is an important factor to look at, as are customer reviews. Companies that have been in business longer typically have long established their reputation and customer reviews will be easy to find. Another factor to look at is a company’s Trustpilot, Google Review and BBB rating, which also lists number of and types of complaints.
Customers should take all of this into consideration before going with a company. Bad marketing tactics and sales pitches are a red flag. Ask questions, do your research, do your due diligence and take your time to shop around.