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Want To Get A Home Warranty? Here’s Some Important Advice

Home warranties are becoming increasingly popular, especially among first-time homebuyers. A home warranty is a service contract that covers the repair or replacement of important home systems and appliances, such as air conditioning, electrical, and plumbing systems. While a home warranty can be a valuable asset, it’s important to understand the limitations of these contracts before you purchase one. Here are some things to keep in mind.

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Budgeting Your Home Warranty

The first thing to consider is the price of the home warranty. So, understanding the choice home warranty pricing is a key step in ensuring you select a plan that aligns with your budgetary constraints and coverage expectations. For example, Choice Home Warranty offers a variety of plans, each with a unique cost structure tailored to the maintenance needs and financial capabilities of homeowners. By examining the pricing details and reviews of different warranty plans, you’ll be better equipped to make an informed decision that balances cost efficiency with comprehensive protection. This foresight can mitigate future financial surprises and solidify the value of your investment in a home warranty plan.

These contracts typically cost between $300 and $500 per year, depending on the coverage you choose. Be sure to factor this cost into your budget when considering whether or not to purchase a home warranty. To get started, you can take a look at the American Home Shield warranty cost and what it covers. Depending on the coverage, the cost will be different. For example, a mid-level plan costs $36.00 per month while a higher-level costs $48.00 per month.

What’s Included in a Home Warranty?

Home warranties typically cover the repair or replacement of major home systems and appliances, such as air conditioning, electrical, and plumbing systems. Some home warranties also cover additional items, such as pools, spas, septic tanks, and water heaters. Be sure to check with your home warranty company to see what is included in your contract. It’s important to understand what is not covered by your home warranty before you purchase one. These contracts typically do not cover routine maintenance, such as changing air filters or batteries, or cosmetic damage, such as scratches and dents. In addition, home warranties usually have a dollar limit per item, so if an appliance needs to be replaced, you may only receive a payment up to that limit. 

How Does a Home Warranty Work?

If something goes wrong with a covered item in your home, you simply call your home warranty company and request service. A representative will then come to your home to assess the problem. If it is determined that the item needs to be repaired, the home warranty company will arrange for a contractor to come to your home and make the necessary repairs. If the item needs to be replaced, the warranty company will send you a check for the replacement cost, up to the dollar limit of your contract. 

Picking the Right Home Warranty Company

Not all home warranties are created equal. When considering a home warranty, it’s important to do your research and a reputable company. Be sure to read reviews of different companies before making a decision. In addition, make sure you understand what is included in the contract and what the exclusion is. It’s also a good idea to get quotes from multiple companies before you purchase a home warranty. To get quotes, you need to provide some basic information about your homes, such as the square footage, age of the home, and type of coverage you’re interested in. Additionally, understanding what exclusions are can save you a lot of money and headache.

Choosing the Right Coverage

As you compare home warranty companies, you’ll also need to decide what type of coverage you want. Home warranties typically offer basic, comprehensive, and premium coverage. Basic coverage typically includes items such as air conditioning, electrical, and plumbing systems. Comprehensive coverage usually adds on additional items, such as pools, spas, septic tanks, and water heaters. Premium coverage is the most expensive but includes the basic and comprehensive plans, plus a few extra perks, such as concierge service and 24/7 customer support. 

When deciding what type of coverage you want, it’s important to consider the age of your home and appliances. If your home is new or your appliances are relatively new, you may not need as much coverage as someone with an older home. In addition, if you’re handy and can do your own repairs, you may not need comprehensive or premium coverage. 

Home Warranty VS Home Insurance

It’s important to understand the difference between a home warranty and home insurance. A home warranty is a service contract that covers the repair or replacement of major appliances and systems, such as air conditioning, electrical, and plumbing systems. Home insurance, on the other hand, is a type of property insurance that covers your home from damages caused by events such as fires, storms, and burglaries. While both are important, they serve different purposes. A home warranty can save you money by covering the cost of repairs or replacements for common household items. Home insurance protects your home and belongings from damage or loss due to events beyond your control. 

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A home warranty can be a great way to protect your home and budget from unexpected repairs. Be sure to do your research before purchasing a home warranty to ensure you’re getting the best coverage for your needs. You can use our quote tool to compare home warranty companies and find the right coverage for you.