5 Key Factors to Consider When Selecting a Home Warranty Company

You've decided to get a home warranty for your new home, but the next step is to choose which one. With the variety of companies available today, it can be difficult to make sure you find one that meets your needs. Thankfully, there are a few key differences between companies. By looking into the following factors, you can find one that's going to be incredibly beneficial and that meets all of your needs. 

Know What's Covered

Make sure you know what's covered by the home warranty. Depending on the home warranty, it can provide coverage for the HVAC, plumbing, and electrical systems as well as major appliances in your home. A trusted home warranty company will cover as much as possible for you, ensuring you can save money and keep your house running. Check out the specifics for each category to make sure you understand what repairs will be covered if something goes wrong or how the policy works if something does break down. 

Find Out What's Excluded

The average home warranty policy will have exclusions, which are things the policy won't cover. Cosmetic damages, which are damages that might be apparent at a scratch and dent sale but don't impact how the appliance works, are commonly excluded from coverage. Pre-existing damages, which are those that appear before the policy is in place, will likely not be included, either. Some policies will cover maintenance, but others will not. Carefully read through all of the exclusions to make sure everything you need is covered. 

Check Out the Cost

Make sure you look carefully at the monthly or yearly cost to have the home warranty. Some are inexpensive, but they may not cover as much. Others may have an average price, but cover a lot more than the average policy. You'll want to find one that covers everything you might need at a lower price, so it's far more affordable. Compare the entire home warranty plan, not just the cost, to make sure you find a good deal. 

Look at the Service Fees

Understand what happens if you do need to use the home warranty. Are there service fees you'll need to pay? How much is the deductible? Understanding your out-of-pocket expenses allows you to make sure that calling the home warranty company and filing a claim is affordable. If the deductible is too high and you won't be able to pay it or the service fees are exorbitant, you're not going to use the home warranty policy, so you won't get any of its benefits. 

Find Out How Long it Lasts

Learn how long the contract lasts for the home warranty policy and what you'll need to do to renew it. Most policies will last for one year, but there are some that have a two-year or longer contract. Understand how you can cancel the contract if needed and what penalties will apply if you do have to cancel. This information is crucial if you ever need to cancel the policy for any reason. 

Are you ready to start shopping for a home warranty policy? Make sure you're comparing the options carefully to find one that's going to meet your needs and your budget. Consider all of the information here whenever you compare policies so you understand exactly how they compare and how to tell which one is right for you.