Home warranties are supposed to calm buyers nerves and usually do. However, what if ultimately the buyer feels cheated by the insurer? The policy could be more trouble than it is worth.
The most important point to consumer satisfaction, in regards to a home warranty, is picking a reputable insurer and reading the fine print. Although there will always be complaints, it is important for all parties involved to understand these home warranty contracts are limited.
Home owners who are thinking of purchasing a home warranty contract should consider the following issues.
- Get an opinion from the state insurance commission. They are usually aware of companies that have a poor reputation or will let you know that the company you are inquiring about, is worth it.
- Like any other contract, read the home warranty contract carefully before signing. If the company does not give a contract out in advance, do not buy it. Any reputable company will not have a problem with someone wanting to read their contract.
- If there are any pre-existing conditions with any system or appliance, before the contract was signed, the insurer won't cover it.
- Keep all receipts or proof that the required maintenance was completed. Most insurers have clauses in their contracts that require specific routine maintenance for the systems or appliances to be covered.
- Who will do the work? Find out how many approved contractors there are and where they are located.
- Find out about service fees. Service fees to determine the extent of the problem and whether it is covered, can be very costly. Buyers should know that beforehand.