Does anyone believe homeownership is a walk in the park? Not only do you have to maintain the house, pay the utility bills, clean, and renovate occasionally, but you also have to pay for home insurance and home warranty plans. Yes, these two are different. The insurance covers natural calamities such as fire, flood, and typhoons. The home warranty is for the appliances and home systems, such as the heating and cooling systems, dishwasher, refrigerator, and many others.
The struggle with choosing a home insurance company is the same as the challenges of picking a good plan. You want to make sure you are getting the best that your money can afford. After all, if you pay at least $600 in premium a year, you want that money to mean something.
But the question is, how do you know you are getting the best coverage plan? With so many home warranty companies offering the “best” plans, how can you be sure you are picking the most cost-efficient service agreement? Most homeowners will want to look at the cost of the coverage, but the money you spend on it is not the most telling quality of a home warranty. Instead, you know you are getting the best home warranty coverage when you are getting your money’s worth. Here’s how to measure that:
A Smooth Proposal
If you want to know more about home warranty coverage, you need to reach out to an agent who will make a proposal. Sometimes, homeowners still have a lot of questions about the warranty. What kind of appliances and home systems will it cover? Can you customize the plan? The agents should explain all of these in detail. They should answer all your questions and put to rest any misgivings.
Communication is the key when it comes to service agreements. The clients want to make sure their needs are being cared for. If you already have a hard time with the agent during the proposal stage, you might want to think twice about signing that agreement. A sign that you are picking a good home warranty company is when it addresses all your apprehensions during the initial stage.
The best home warranty coverage is one that can be customized. Most home warranties have a basic package — that means it offers coverage to basic appliances and home systems. However, homeowners can extend the coverage by paying more to include appliances such as the washer and dryer. Some even want to add the furnace and the plumbing.
Not all home warranty companies allow the customization of packages in an à la carte way. Instead, they will ask the clients to choose among the bundled packages. As a client, you want the service provider to give you the freedom to decide what to include in the service agreement. After all, you are the one paying, right?
The average cost of basic home warranty plans is between $350 and $600 a year. Extended coverage will add $100 to $500, depending on the types of appliances and home systems you want to add. Each service call will cost around $50 to $100 per visit. The lower your annual premium is, the more expensive each service call will be.
Some home warranty companies do not include plumbing in their basic coverage because plumbing problems are usually a complex web of environmental problems. Clients should look into the basic inclusions because they might already have what they need without the add-ons and extensions.
A home warranty should have a straightforward claims process. You should know the first steps to take when making a claim. What will happen during the process? What can you expect? The agent should give a step-by-step guide on making a claim when something breaks in your house.
The best home warranty contracts are the ones that are very clear about their scope and limitations. They will give a breakdown of the service agreement costs and make sure that the client will benefit from it. The process of knowing if you are being presented with the best home warranty plan starts from the beginning — when you reach out to an agent and ask for a proposal. From signing the agreement to the claims process, the road should be swift and hassle-free.