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How to Buy a Home Warranty Plan

When it comes to home warranty plans, the choice is often not clear. 

Do you need the most basic plan, or do you need a more comprehensive one?

When considering home warranty plans, you must consider how many appliances you have. Here are some tips to make the decision.

Read more: First Time Home Buyer? 5 Things to Know

1. Cost Of A Home Warranty Plan

While the average cost of a home warranty plan ranges from $25 to $100 a month, this figure may not be accurate. While some home warranty plans require a one-year contract, most offer monthly payments. Others offer no difference between plans, so you must consider the cost and the protection level you want. In addition to the price of the plan, consider the amount of protection you want to gain by purchasing a home warranty plan.

Most home warranty plans include some service call fee, which is the technician’s time and travel cost. The service call fee is typically between $75 and $125, covering the cost of sending a technician to your home. For example, suppose your air conditioning system breaks down and costs $500. Your home warranty plan would cover up to $400 of the repair cost. The cost of a home warranty plan varies by region.

2. Coverage Provided By A Home Warranty Plan

Home warranty plans are an excellent way to avoid costly repairs and unexpected expenses. But they’re not right for every homeowner. You should carefully examine the coverage provided by each plan to determine if it’s the right option for you. While some plans do cover preexisting conditions, others do not. In either case, you must review the plan’s terms and conditions carefully. Home warranty coverage is worth considering if you’re concerned about unexpected costs and want to minimize the impact on your emergency fund.

In most cases, a home warranty plan will cover the following: plumbing, heating, electrical systems, and specialty items. In addition, some plans include roof coverage and even cover swimming pool and spa equipment. Depending on your state, you may also be able to choose additional coverage for items like a good pump or roof. Before buying a home warranty plan, read the fine print carefully to determine if it covers your appliances and other equipment. In some cases, home warranty plans may not cover any parts or services of an old home but can offer great peace of mind if you need repair or replacement services.

3. Choosing A Home Warranty Plan

Getting a home warranty for your property is essential for many reasons. First, you want peace of mind when something goes wrong with your home. To get the best plan for your needs, consider some of the following things: pricing, technician experience, types of coverage, and age of your home. Then compare these plans and read reviews of different companies to find the one that is right for you. When choosing a plan, you should be able to select the coverage level and contract length that suits your needs.

The first thing to consider is the age of your home. If your home is new, you may still have the builder’s warranty, which applies to central systems and appliances. But older homes might need major repairs, such as a new furnace or roof. A home warranty may not be necessary, so it is vital to read the fine print. However, if you are concerned about the cost, consider purchasing a plan that covers all the significant parts of your home, including the roof.

Home warranty companies should provide customers with multiple contact options for customer support. Make sure to choose a company with a US-based call center and office hours that correspond with your time zone. A good home warranty company should also have a clearly defined list of coverages, so you can quickly identify which items they cover.

Ask customer service representatives about these details to make an informed decision. This will make the whole process easier for you and help you avoid spending a lot more than you have to.

Read more: A Handy Financial Guide To Buying Your First Home

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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