Nearly seven million people purchased homes in the United States last year according to reports from the real estate sector. Analysts expect a growing number of people to become homeowners in the years to come. While homeowner’s insurance protects against certain types of damage and the costs of repairs, those policies don’t cover all possible problems.
Taking Protection to the Next Level
Because of that, homeowners are advised to get a home warranty plan to bridge the gap. These plans cover factors homeowner’s insurance doesn’t, so they’re helpful for giving homeowners an added layer of protection. While they certainly offer their fair share of benefits, experts recommend that homeowners fully understand home warranties before making a final purchasing decision.
Factors to Keep in Mind When Purchasing a Home Warranty
It’s important to keep certain factors in mind when choosing a home warranty plan. Remember, not all warranties are the same. Each one is designed to cover specific occurrences. Furthermore, not all of them provide the coverage homeowners think they’re getting. Be sure to consider the following elements before signing on the dotted line.
What Does Your Homeowner’s Insurance Cover?
For one, it’s best to understand the exact coverage your homeowner’s insurance policy provides before choosing a home warranty. While having extra protection is helpful, it may not be necessary. Having overlapping coverage between an insurance policy and a home warranty could bring about unnecessary expenses. Take an in-depth look at your homeowner’s insurance before deciding which warranty plan is right for your situation.
What Do Home Warranties Cover?
From there, take a closer look at the coverage provided by various home warranty plans. Not all of them cover all appliance breakdowns and other issues that aren’t included in homeowner’s insurance policies. Compare the appliances you have and other problems that could arise, and weigh those against the protection provided by the warranties you’re considering. That’ll help you find the right amount of warranty coverage.
How Far Does the Warranty Go?
Additionally, be sure you understand exactly which issues home warranties cover and how much of a payout they may provide. Some have certain limitations in place. That means they may cover only a portion of repair expenses or provide a specific amount of money to be allotted to repairs. They may not grant payouts for appliances and other home components that haven’t been properly maintained. At the same time, some warranties only pay out a portion of the cost of appliance replacement, leaving you to make up the difference.
Finding the Right Coverage for Your Circumstances
These questions can help you find the right home warranty plan to suit your distinct needs. Be sure you’re not purchasing more coverage than you need. On the other hand, try to leave as few gaps in coverage as possible.
Take care to fully understand just how much protection different home warranties offer, too. That’ll help prevent unpleasant surprises and unexpected expenses when repair needs arise. All these factors will go a long way toward ensuring you have the protection you need as a homeowner.
