Questions To Ask Before Buying Home Warranty Protection

The home warranty is one such coverage, which can offer valuable coverage against the cost of different types of expensive home repairs, but one thing is important to keep in mind that not all the home warranty providers are created equally and not all the warranties cover same repairs.

It actually pays to ask several questions before entering into the home service contracts,keeping in mind that choosing the home warranty is completely different from the manufacturer’s warranty, which accompanies the purchase of new vehicles. Instead, the home warranty is similar to “after-market” vehicle warranty. So, one needs to understand what this warranty actually costs and what it actually covers by asking the following questions:

  • What is the service trip cost: Apart from the premium rate, the majority of the warranty companies ask for a fixed charge for every service call. So, you need to be aware of the price for each visit. Also check whether it is a flat fee or is there any additional cost for offering emergency service.
  • What is the standard pricing: The cost of warranty becomes an obvious consideration if you choose to buy a home warranty. But there is some more story than the pricing of the first year of coverage. The warranty companies are well aware of the fact that repairs become more likely when the systems become aged and in most of the cases, the cost of premium increases in the second and therefore in the following years.
  • How high coverage limit it has: The warranties mostly put limits on the liability of the insurance provider, whether those apply to the warranty to specific terms or as a whole. So, it becomes necessary to check whether this is some annual limit on all and any work that the company does. Also find out in case there is any specific limit on individual system or item. Don’t forget to find out if there is any circumstance when the company can opt out of this limit.

Which items are covered by this home warranty: It is perhaps the most basic question available, but it is important to consider this fact carefully. Components and systems, which you might believe are covered may be excluded specifically. Also check whether the coverage extends beyond foundation or in case you are responsible for sewer, gas and water lines, which are on the property but are located outside the foundation?

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