The Essential Factors to Consider When Buying a Home Warranty

Have you recently purchased a house? If so, you likely want to take a breather and avoid spending any more of your money. But unforeseen home appliance and system repair bills are an unfortunate reality. Sometimes, your air-conditioning unit or other systems may break down at the worst possible time.

For this reason, a lot of homeowners think about buying a home warranty plan from Select Home Warranty. It's a service agreement that generally covers the cost of repairing major home appliances and systems once they malfunction. 

Do you think you can benefit from the extra assurance that a home warranty brings? Here are some of the essential factors you need to consider when buying a home warranty.

Service Fees

Find out if there's a cost whenever an incident happens and how much the service fee will be. The home warranty company will likely have a set amount you need to pay (deductible) for every claim. You need to factor this into the annual cost against the wide range of services they offer. This way, you'll know whether you're getting the best out of the policy. 


Determine what your needs are, then match those up with the available warranty options. Also, ask if the plan will cover items of all ages. If you have newer appliances at home but your plumbing system's timeworn, you might want to get a premium plan instead. It's pricier but covers the more expensive household systems. 

Find out if you're allowed to make additions to a company's standard plan. Many providers offer add-ons (at an extra cost) to cover specific amenities not included in their basic plan. Keep in mind that the best home warranty plan should be the one that works best for you. For example, the most suitable offer could be a highly discounted combo pack that provides coverage for everything. Or, you may only need to cover major appliances in your kitchen and laundry room.

Either way, carefully weigh the terms in your home warranty plan. You'll likely end up saving a lot in the long run by only spending a little bit more money on your ideal coverage. 

Limits and Exclusions

Equally important is to check the limits and exclusions of the policy you're interested in. For example, there are cases when the company will not cover appliances or systems that have broken down for specific reasons. The circumstances under which these exceptions occur can be a bit confusing. So, you must ask your prospective provider to explain these items thoroughly before buying a home warranty plan. Read the terms carefully and ask questions before you settle on a particular plan. 


Ask about the company's policies, such as whether or not the plan includes replacing defective items with similar or better units. Additionally, find out what the plan's cancellation policy is. Will you be on the hook for a set period? Will, your home warranty plan, be subjected to certain charges should you terminate the agreement before a specific date?

Customer Support

Another consideration when buying a home warranty plan is the availability of a customer service representative. Is there someone from the company to take your call should something go wrong? You'd likely want a warranty plan that offers support around the clock. You may not always have to file a claim every time something seems amiss. But expect that there will be an issue at some point, sooner or later. Talking to someone and getting things resolved quickly is vital. 

Buying a home entails a lot of responsibilities. These include protecting it as much as you can. One way to achieve this is by getting a home warranty plan. It would be exasperating to shell out an excessive amount of money for a major appliance or system repair. This is especially true if you've recently spent most of your funds on your home's down payment. As you know, fixing a major system could cost you hundreds or even thousands of dollars.

With a home warranty plan, though, you don't have to stress over where to find enough money to repair or replace a broken unit. Instead, the policy will act as a buffer and give you the peace of mind you need.  



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