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Home Warranties and the truth behind them

Home Warranties and the Truth behind Them

Like anything else purchased for the home, homeowners need to perform some homework on home warranties and the companies that offer them. Much is made of the need to read the “fine print” before buying a warranty. That does not make the concept, or the service itself, a scam. Any contract that people enter into with another entity has conditions, clauses, etc. Simply go ahead and read them, and ask many questions before buying.

Doing the Homework

Product and service comparison among companies is a must whenever people buy for the long haul. Go online and check out warranty company web sites and see what they have to say about their coverage. Double check their credibility by looking at other sites, such as the Better Business Bureau, consumer reports and blogs. As in other industries, a home warranty company may change ownership, management and even its name. If this is the case, look into it by contacting the company and finding out why.

Asking Practical Questions

Narrow down the field of companies with home warranties and dig even deeper. Ask whether live customer service is available 24/7 and test this by calling at an odd hour. Find out whether the estimates the companies give for various repairs on home systems and appliances are reasonable for the cost of service repair experts in the local area. Make sure you understand the deductibles or services fees associated with the home warranties, and whether these vary depending on the type of repair needed.

Asking Even More Questions

Also ask your selected companies whether they have an exclusive list of plumbers, electricians, etc., that they deal with, or if you can choose whomever you want. It would be good to also check with the local plumbers and electricians about their own experiences in regards to warranty work with the companies. In fact, they may have some excellent insight not gleaned during an Internet search. Be sure to ask the companies if they offer a cash option in lieu of receiving a bill and paying it. You may be able to have the repair done at a lower rate.

Are Home Warranties Worth the Effort?

Home warranties are obviously not mandatory, like basic auto insurance. However, fixing a major plumbing or electrical problem, or trying to figure out why an appliance is not working, can be a hassle, even for do-it-yourself homeowners. The exact type and timing of the problem are rarely predictable, even for older systems and appliances. If it turns out the problem requires a specialist to solve, then the cost can easily and quickly escalate into hundreds of dollars. This is more than the $250 minimum home warranty available on the market.

With some research and common sense, having a home warranty is worth it. You save time, energy, money and frustration in the long run. If any poor home warranty companies exist, they will not stand up long under the scrutiny of discerning shoppers. Do not let these few discourage you from considering a warranty for your largest investment: your home.
 

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