Important Things to Consider Before Buying a Home Warranty

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Are you thinking of buying a home warranty? Home warranties are a great way to protect your home investment. By purchasing a warranty, you ensure that any repairs or replacements of major appliances and systems in your home will be taken care of at no cost to you. However, there are some important things to consider before buying a home warranty. This blog post will discuss the most important factors when deciding whether a home warranty is right for you. Let’s get started.

Compensation Period

The reimbursement period is one of the most important things to consider when buying a home warranty. This refers to when the home warranty company will reimburse you for repairs or replacements. Most warranties have a reimbursement period of one year. However, you can find home warranty companies with no waiting period or even a 30-day period. Finding a home warranty company with a reimbursement period that meets your needs is important.

This means you need to check the warranty length and how long it will take for the home warranty company to reimburse you. Some companies offer smooth reimbursement, while others have a lot of conditions that must be met. So, it’s important that you understand the reimbursement policy before buying a home warranty.


Another important thing to consider when buying a home warranty is the deductible. The deductible is the amount of money you will have to pay out of pocket for repairs or replacements before the home warranty company will reimburse you. The deductible is usually a percentage of the repair or replacement cost. For example, if the repair or replacement costs $100 and the deductible is 20%, you will have to pay $20 out of pocket.

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It’s important to find a home warranty company with a deductible that meets your needs. Some home warranty companies have a high deductible, while others have no deductible. Finding the right deductible is important because it will help you save money in the long run.

Company’s Limits and Exclusions

Every home warranty company has limits on what they will and will not cover. Make sure to read the fine print of any contract you are considering to know exactly what is covered. Additionally, many companies exclude certain items from their coverage, such as pools, spas, trampolines, and other outdoor amenities.

It is important to know the exact limits and what is excluded from the home warranty before you purchase it. Otherwise, you may find yourself unexpectedly responsible for a repair or replacement that you thought would be covered. For instance, you may think your home warranty will cover your pool pump replacement, but it is excluded from the contract.

Cost of Your Chosen Plan

The cost of the home warranty plan is another important consideration. Home warranty plans typically range in price from $350 to $600 per year. The price of the plan depends on the coverage you choose and the deductible you select.

It is important to find a home warranty company that offers a fair price for their services. You don’t want to overpay for your home warranty, but you also don’t want to underpay and end up with insufficient coverage. If possible, talk to a few different home warranty companies to get quotes and compare prices.

Types of Service Providers the Company Works With

Another important thing to consider before buying a home warranty is the type of service provider that the company works with. Some home warranty companies only work with licensed and insured contractors. Others will work with any contractor willing to provide services at their rates.

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Finding a home warranty company that works with service providers you are comfortable with is important. You don’t want to have to worry about whether or not the contractor is licensed and insured. Instead, you want to be able to focus on getting your repairs or replacements done on time. For instance, if you only want to work with licensed and insured contractors, find a home warranty company with those requirements.

Type of Home

Is your home new or old? If your home is new, you may not need a home warranty. The builder’s warranty covers new homes for the first year or two. However, if your home is older, a home warranty can help protect you from unexpected repairs or replacements.

Ensure that the home warranty company you choose offers coverage for your home type. Some companies only offer coverage for certain homes, such as single-family homes or condos. Others may exclude certain types of homes, such as manufactured homes. If possible, find a home warranty company that offers coverage for your specific type of home.

Choosing the right home warranty company is important. There are many things to consider before making a decision. Some of the most important things to consider include the deductible, limits and exclusions, plan cost, types of service providers, and type of home. By taking the time to research your options, you can find the best home warranty company for your needs.

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