Home warranties are there to help protect against the normal wear and tear that happens to any home. These policies protect your heating, cooling, plumbing and more, but you have to make sure that you’re not falling into any of the common mistakes that plague new homeowners. This will primarily concern homeowners in Arizona, but much of this information can be used by anyone considering a home warranty policy.
Not Reviewing the Policy
This is a massive problem no matter what type of insurance or warranty you’re buying. You always need to review the policy. Many people don’t want to because the information is lengthy, usually written with legal terms and they just don’t want to think about all the potential problems that might happen. This frustration is understandable, but you must know what your policy entails.
At the very least, you have to check your home warranty policy to see what is covered, whether labor costs are covered and if the warranty covers external structures. If you’re not sure, then ask the company selling the home warranty for clarification.
Skipping a Home Inspection
This can be problematic for a number of reasons, but we’re concentrating on home warranties. Before you get a home warranty in Arizona, you must do an inspection of the home to find out the condition of appliances. For example, failing to inspect your cooling system can be dangerous in the summer considering the high Arizona heats. Not only that, but some warranties require an inspection or they may not fully honor your benefits.
Be sure to schedule a home inspection. An expert will be able to tell you if everything is in working order or if some work needs to be done.
Picking the First Policy
Many people will pick the first home warranty policy that is given to them. Every insurance company has many warranty packages and you should check them over to make sure you get the right one. While every home warranty policy covers internal structures and appliances, a good warranty package can do so much more. This will determine how much you pay in labor, which appliances are covered, if external structures are covered and much more.
Don’t simply pick the first policy given to you. You should instead ask the agent about other packages to ensure you’re getting exactly what you need. You don’t want to get through a hot Arizona summer to find out your cooling or electrical coverage isn’t as good as you hoped. Take some initiative and check available warranty policies.
Covered by Other Warranties
New appliances have their own warranty. This is when you have to question if it would be smarter to get a home warranty to cover these services, or if it’s best to rely on the appliance warranty for now and get the home warranty later. There are pros and cons to both approaches.
If you rely on the appliance warranty itself, then you might have to pay some supplemental fees if the appliance breaks. You may also forget about including the appliance in your home warranty after the appliance warranty expires. This can be an issue because it might break and you’ll have no coverage. Getting a home warranty before the appliance warranty expires means you’ll be paying more money overall, but it also means you’ll never have to worry about coverage expiring.
Most people think that home warranty only covers repairing an appliance, but the truth is that sometimes replacing an item is cheaper than repairing it. In general, most home warranty policies will cover either repairing or replacing the item in question. If the item is replaced, then you might be responsible for paying some of the bill.
For example, if your policy says the home warranty only covers the appliance at its depreciated value, then you might have to pay for part of the replacement. Other policies will pay the full price of the replacement.
Home warranties are a wonderful idea for residents in Arizona and everywhere else. This protects many of the systems and appliances in your home and ensures you can easily get them fixed if anything happens. Just be sure to avoid these five mistakes and get the best policy possible.