If you are a new homeowner, you probably already own a home warranty, whether it was contained within your home’s purchase price or paid for yourself. If your home warranty is about to expire, it is time to decide whether renewing your agreement is worth the cost. Home warranties are designed to cover the maintenance and repair of appliances and major home systems, such as heating, cooling, and electrical. In concept, these plans should work as a safety net should you encounter potential expenses of having to repair or replace both costly and essential items in your home. If you have used you home warranty before, you already know how your warranty company functions and what to expect from them. If you have not, there are some reflections you may want to keep in mind before electing to renew.
The age of your home
A home warranty could be very worthwhile in the long run. The average cost of repairing an A/C unit, for instance, could be somewhere between $300 and $1,000, while replacing a complete system could cost you over $2,000. A home warranty, alternatively, can cost between $350 and $550 a year, with some companies charging an added fee between $55 and $75 for each service call. Consider your budget and decide if you would be able to cover the unexpected costs of replacements or repairs. If you did not have to pay for the initial coverage, then you possibly did not pay much attention to the cost of your home warranty. Nonetheless, you had to pay the service call fee if you had one and that likely felt like a fine deal, particularly if you had something major go wrong with one of your systems. For people who reside in older homes, age is definitely a factor to consider. How old are your appliances, your AC and heat pump, the filter motor for your pool, hot water heater, your roof, garage door opener amongst many other things that a home warranty can cover. It is important to know that if you do not have an existing home warranty you can always obtain one. You can acquire a home warranty any time, but take into account that there will be a 30-day waiting period for it to go into effect.
Home Warranty Coverage
Home warranty services vary significantly in what they will and will not cover, and many home warranty companies set a limit on how much they are willing to pay to replace specific items or on how many times you can demand repair for them. Remember that most home warranty companies will refuse to cover any pre-existing defects or damages, meaning that if the item was broken or out of order prior to purchasing the warranty, the company will not pay to have it fixed. Certain companies will not cover damages made by animals, problems resulting from unsuitable system installation, or any malfunction they deem was caused by poor conservation, so be sure to read the fine print and know exactly what and how much the warranty will cover before signing the contract. Some people do not have enough money in their savings to pay for a major repair like a heating, ventilating and air conditioning system malfunction. Customizing your Home Warranty plan is all about personal needs and no one is able to assess them better than you – the homeowner. Remember to prioritize: if you are apprehensive about your heating and cooling system make sure to purchase home warranty coverage for it as well as other crucial kitchen items for instance.
Be on the lookout
Aside from service omissions, watch out for deductibles or service fees, which can add up over time, particularly if you end up requesting service for an appliance or system several times over the year. Some companies will attempt to have problems fixed time and time again, opting for a short-term solution instead of exchanging what does not work. Furthermore, beware of home warranty companies that do not pre-screen subcontractors or do not guarantee the work they undergo. It is crucial that the provider you select guarantees customer satisfaction, even if they do not carry out the repairs themselves.
Renewing your current warranty vs. getting a new one
One way to deal with the question of your right to renew is to just simply ask the contractor you work with, whether it is a real estate professional or a home warranty company. If the home warranty that is being proposed to you for consideration does not allow you to renew without the company’s consent then you should consider comparing that service contract to others which would potentially allow you to renew freely. It is never beneficial to own a home warranty contract that does not guarantee your right to renew. In truth, you risk a break in your overall coverage if you purchase a home warranty that does not guarantee you the permission to renew as your next home warranty might not provide you instantaneous coverage after buying it, which would leave you with a period in which any repairs required, would be 100% on you.
Before renewing your home warranty contract, consider everything from the items covered to the limit on what the company will pay out, as well as any limitations on services and added service fees. If you are not satisfied with your present coverage but want to invest in a plan that can help protect your savings in the event of an emergency, consider your options and shop around for a customizable coverage and a home warranty provider with outstanding customer ratings, who will ensure the work done by third parties, and offer a large network of prescreened contractors.
Owning a Home Warranty is definitely worthwhile so renewing it should certainly be on the negotiating table. What you need to ask yourself is if you are pleased with your current provider and wish to renew with it or if making a switch to a new one would give you added satisfaction and relief.