Can You Trust Your Home Warranty Coverage? Five Things You Need to Check
When buying a home, one of the first essential things you'll consider buying is a quality home warranty. After all, a home is a big investment, and you want to make sure that your investment is protected from unforeseen problems. Before you trust your home warranty, make sure you check these five things.
1. Will Your Warranty Cover Pre-existing Conditions?
It's important to check your home warranty to see if it will cover any unknown pre-existing conditions. Most home warranties will not, which is why it is important to have a thorough home inspection performed before purchasing your home. Some home warranties do come with coverage for certain pre-existing conditions that may have been missed during the home inspection. Always read the fine print to see if there are any pre-existing conditions covered.
2. Deductibles and Coverage Limits
Having a home warranty and using a home warranty are two different things. Just like any form of insurance, home warranties are only as good as what they'll cover when you need to use them. Make sure you know if there are any deductibles in your warranty for damage and repairs. When looking at what is covered, also look at what monetary limits are placed on what is covered. For instance, if you need to replace your roof due to damage, will your home warranty cover the cost of your roof, or will you have to pay an additional amount?
3. What Are the Exclusions?
You'll want to pay particular attention to any exclusion listed in your home warranty. Certain appliances or appliance parts may be excluded, which could cost you thousands in the future. Paying a little bit more for a warranty upfront may save you this money over the long-term, especially if you have older appliances and know you'll eventually upgrade. You may prefer home warranty coverage that is more comprehensive and gives you more benefits. Or you may prefer less coverage. Still, knowing these exclusions can help you better plan your finances for your future homeownership.
4. Find Out Exactly What Your Home Warranty Covers
Home warranties come in all shapes and sizes. Some cover more than others, so you'll want to make sure you know exactly what is covered in your home warranty. Look for coverage regarding your home's roof, appliances, plumbing, HVAC system, and even whether or not mold is covered. As mentioned above, knowing what is covered can help you better plan for the future. A lot of what is covered in home warranties are add-ons that you can purchase separately. You'll want to understand this because if you don't add these supplemental services, you won't be covered. Usually, home warranties cover HVAC systems and plumbing, but you'll want to know how much and what parts are covered.
5. Be Sure to Plan for What Might Go Wrong
Of course, you want to know the wording of your home warranty, what is covered, and how much you may have to pay out of pocket if your roof, appliances, or HVAC system need repair or replacement. It's not a bad idea to also save up for the inevitable. Using your home warranty will be the true test of whether or not you can trust your home warranty. When something happens, will you get reputable repair technicians, and will they do quality work? Will you experience unforeseen costs? Will you be allowed to shop around for prices? What's on paper may not be what is truly provided once you need to utilize the services offered by your home warranty.
Overall, home warranties are great, because they can help you protect your investment. Just make sure you know what's in your home warranty, read the fine print, and prepare financially just in case you run into unforeseen problems along the way.