Home Warranty plans are a great way to begin home ownership. Not every home requires a home warranty plan, but that's up to a homeowner. You may be very handy and can fix most anything; or you hire every repair to be completed.
There are some key things to know about home warranty plans. Home warranty plans can be compared to an insurance policy. The plan will cover specific items and there will be a fee due at time of service, similar to a deductible.
A home warranty plan is designed to repair items that fail and there's a specific list of what is and is not covered.
If you've just purchased your home, a repair that is identified in a home inspection report as defective or needing replacement will not be covered by a home warranty plan. That's similar to what's called a "pre existing condition" in an insurance policy.
If you're not sure if a home warranty plan is in your best interests, consider the age of your home and appliances. Research each major appliance and the systems in your home. Are they of the age that it might be wise to purchase a home warranty plan to cover those items if they fail?
One example of how a home warranty plan works is a water heater failure. In Arizona, water heaters typically last on average between 8 - 10 years. If your water heater is older than that, consider a home warranty plan. A water heater will be replaced or a credit given for replacement when it fails by the home warranty company. Price a water heater versus the annual cost of a home warranty plan to determine if it's in your best interests to purchase a home warranty policy.
When calling for repairs, group like types of repairs together and make one call to the warranty company. One example of this is grouping all plumbing repairs into one category and one phone call. One call may mean one service call, saving you money on the plan.
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