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Home warranties can be an excellent investment for new homeowners who may be unfamiliar with how to maintain and repair systems and appliances in their new homes. Unfortunately, premiums and coverage limits vary significantly among companies.
To ensure you are receiving the maximum value from your home warranty contract, it’s essential that you review its details. Here are a few items to look out for below. Also, remember that you can find home warranty companies in Florida online.
Coverage Options
Home warranty providers typically offer various coverage plans with differing costs and levels of protection, so it’s wise to carefully review plan details, pricing structures and customer feedback before selecting one as your provider.
Assure you purchase coverage that offers generous coverage limits and add-ons that can help cover repair or replacement costs in case of large scale problems. This may help cover unexpected repairs or expenses related to major issues that could occur later.
Be wary of contracts that contain high deductibles that could increase out-of-pocket expenses should something go wrong with your home warranty coverage.
Some plans may exclude systems and appliances that have been improperly repaired, modified, installed or used in commercial businesses like bed-and-breakfasts and day cares. Homeowners should consider whether to include extras such as lawn sprinklers, pools and roof coverage when choosing their warranty plan – it’s essential to carefully consider all factors and choose one that meets both their budget and needs.
Exclusions
Setting aside emergency funds can be draining, so having home warranty coverage prevents you from incurring costs that would drain them faster and could devastate your budget, especially with expensive repairs, like roofing. Most home warranties have limits; so be sure to read and understand their contract for details, protections and exclusions before signing anything.
Home warranty companies take a calculated risk when estimating how much in premiums will cover the costs associated with replacing or repairing systems, appliances and components that wear out over time. To minimize their exposure, they often set caps for specific items or scenarios covered under warranty coverage.
Maintaining meticulous maintenance records and mitigating damage when possible are the best ways to avoid claim denials and prove that your system or appliance was well cared for when it failed. Doing this will reduce the need to file a claim while also showing proof of good care taken with it when it went haywire.
Service Call Fees
An annual home warranty costs typically includes two components, the premium and service call fees. The premium is an annual charge that applies whether or not service is needed on covered appliances or systems; service call fees, on the other hand, are payable per service visit as co-payment and can range anywhere from $75-125 depending on your plan.
Most companies provide various plans and add-on coverages. Some provide well pump protection while others might include swimming pools as standard coverage; pricing doesn’t usually depend on square footage of property, while garages or guest houses may incur an additional fee. To determine annual home warranty costs in any particular location, it is wise to compare quotes among providers in that region.