Countless homebuyers today turn to a home warranty company to receive protection from unexpected household repairs. They want to know they won’t face a high repair bill in the coming months, and this plan will provide that protection. However, homeowners need to compare various companies to find the one that best meets their needs. What should they consider when making this choice?
The Cost of the Plan
Many factors play a role in how much a person will pay for a home warranty. For example, each company puts limits on what it will pay out and this influences the premium. The same holds when it comes to exclusions and limitations. However, a person should not base their decision on which plan to buy solely on price.
The more coverage a person has, the less they will pay out-of-pocket for repairs to covered appliances and systems. Every person should request a quote from a minimum of three providers and review these plans carefully to learn which will be of the most benefit to them. What is appropriate for one homeowner might not be right for another.
Financial Stability
However, a company can only pay out when it has the funds to do so. Look into the financial stability of each plan provider before making this choice. Learn how long it takes for the average claim to be paid, as nobody wants to wait weeks, months, or even years to have an appliance or system repaired or replaced.
Two sources of financial information are the Better Business Bureau and A.M. Best. Choose a company with solid financial stability to ensure claims will be paid in a timely manner.
Limits and Exclusions
As previously mentioned, limits and exclusions play a role in how much a person will pay for a home warranty plan. Review each service agreement carefully to learn what will and will not be covered. For example, many plans cover a refrigerator but not the ice maker built into the appliance. Knowing the limits and exclusions helps to prevent unpleasant surprises in the future.
If there are any questions regarding what is covered or the limits on various repairs, ask before signing a contract. Furthermore, learn how much the company will pay for all covered repairs in a specified period. If multiple appliances break down in a short period, the homeowner might find they are responsible for paying for some of the repairs, as they have reached their limit for the year.
Customer Service
How easy is it to reach the company when a repair is needed? Can the customer make this request online, or must they call in and speak to a representative? Learn about all options open to customers in this situation.
Furthermore, read online reviews to see what others have to say about a company’s customer service. It’s frustrating to find what appears to be the perfect plan, only to learn the company is lacking in this area. It’s best to know this information before a provider is selected.
A home warranty comes with many benefits, but only when the right plan is selected. Consider the above when choosing a provider to work with for the best results. Homeowners who do so find they obtain the protection they desire at a price they can afford.