Be Wary of Home Warranty Policies

If you are in the market for a home this summer, and you’re like many potential homeowners, you’ll probably ask the seller to provide a home warranty for your purchase.

Which can be a good move, or a pretty bad move.

What is a home warranty, anyway?

A home warranty policy typically covers large cost items in a home like plumbing systems, major appliances, AC units and more.

These policies usually last 1 year from the date of purchase of the home. Many have a deductible of $100 and will charge a service fee when they come to your home.

Having a home warranty can be great, but there are a few very important things to be aware of.

According to home improvement web site Angie’s List:

Home warranty companies have topped their “Top Complaints” List for the past several years.

The reason for this seems to be an “expectations gap” between companies and clients regarding what is covered, and if service fees apply or not.

Home warranty companies can also deny a claim on an appliance, for example, by telling you the breakdown happened because of damage caused by the previous homeowner. And is therefore not covered in your policy.

The bottom line is, you never know what will be covered, and what will not be covered, until it breaks down, and a service person comes to your home.

Then you could be fine, or you could get a big shock.

Remember to always read the fine print and do not be afraid to ask questions, before you sign a home warranty policy. Making sure you notice what types of items and situations are excluded from coverage.

Now sometimes your real estate agent will purchase a warranty as a gift to you, the buyer. While this may sound like a good deal to you at first, you must look deeper into the policy. A “gift” that does not cover you when you need it the most, is not much of a gift at all.

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