A home owners insurance policy does not cover wear and tear or items that break from regular use. Should things like your air conditioner, water heater or fridge break down, you will typically have to pay for the repairs or the replacement on your own. These repairs or replacement costs can add up quickly and for many people, can cause a huge strain on their finances. A home warranty can help to protect and cover many of the things that a home owners insurance policy does not cover. If you are looking to purchase one, it is important to understand that they are not all the same. Here are a few of the things you need to closely look at when you buy a home warranty.
What is Covered
First and foremost, pay close attention to what is covered. Different items are covered with different companies. Some will cover things like your roofing, heating and cooling appliances and your plumbing. Others will only cover smaller items like appliances. Some companies may cover your pool, while others may not. Carefully reading through what is and is not covered will help you find the coverage you are looking for in a home warranty.
The Waiting Period
Another important factor to consider is how long the waiting period is. Most companies have a waiting period so you do not buy a plan only when you need work done. In some cases, the waiting period may be as short as 7 days or as long as 90 days. Consider the length of the waiting period so you know how long you will have to wait until your policy or plan kicks in after buying it.
The last factor you need to consider is the deductible. Just like a home owners insurance plan, most home warranty plans have a deductible. If your deductible for the warranty is high, your costs for the warranty may be lower. However, if you have a high deductible, such as $1000, you may find that you can't use it often. Most repairs and even appliance replacement costs are below the $1000 mark, the plan may have little to offer you. Carefully weigh the deductible cost with the average repair or replacement cost to find the right balance for your needs.
Paying close attention to all of these factors will help you select a home warranty company, such as High Tech Home Warranties, that offers the home warranty that is ideal for you.