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What to Know When Shopping for a Home Warranty

Updated: May 12, 2023

A home warranty is a contract that covers certain repairs or parts replacements when an appliance or system, such as central air conditioning, breaks in a home. One of the main differences between a home warranty and insurance is that a warranty covers more expected incidents, such as normal wear and tear, while insurance covers unexpected accidents and natural disasters.

Here, All Real Estate Title Solutions outlines some things to know when shopping for a home warranty.

The Benefits of Purchasing a Home Warranty

Home warranties generally last for a year and assist with the cost of repairs and replacements in a house. More specifically, it benefits homeowners to purchase a warranty because of it:

  • Helps homeowners with paying to fix broken items, which can be costly

  • Enables residents to potentially receive faster service, leaving them without the use of their appliance for a shorter amount of time

  • Gives homeowners a better opportunity to hire someone who they trust

Home warranties can be particularly beneficial for those who own homes with older systems and appliances.

The Costs of a Home Warranty

You’ll need to consider the total cost of a home warranty. It is important to consider the fees associated with this type of coverage before making a decision. Home warranties generally come with an upfront cost accompanied by additional fees for each service request. These additional fees often depend on the type of service required and the cost of parts and labor needed to complete the job. Other common costs associated with home warranties include diagnostic fees, trip charges, maximum limits per repair or replacement, and applicable taxes.

How to Organize Home Warranty Documents

Because the process of choosing a home warranty company is already so time-consuming, homeowners will want to keep any documents they receive from the warranty company well-organized to avoid spending more time tracking documents down. Digitizing documents as PDFs by converting them from Word, PowerPoint, or other formats is a godsend in this regard. When something breaks, being able to locate important documents quickly will assist with having the repair completed as soon as possible. Keep in mind that you can use a PDF file converter, a handy online tool to quickly convert files in four easy steps.

What Coverage a Homeowner Needs

CBS News points out that determining what coverage a resident needs in the first place is important when shopping for a home warranty. For example, people in the industry say that homeowners with older homes or pricier appliances might benefit from having a more expensive plan that will cover more if something stops working. Shopping around online and asking other homeowners in the area about their experiences with home warranty companies and what they cover are both good ideas.

How the Reviews Stack Up

Reviews are an important aspect to consider when choosing any product or service, and, as you’re looking for a warranty, a home warranty is no different. There are plenty of websites online where customers rate their experience with warranty companies, so peruse these to get an idea of the company's reputation. Remember that one bad review does not necessarily mean that the company is bad, since negative experiences can happen to anyone. However, reading multiple opinions about a business can give homeowners a good overall idea about the business.

The Fine Print

Like most contracts, there is a considerable amount of fine print to read on most home warranty documents. notes that going through the fine print may be tedious and time-consuming, but doing so, as well as asking questions, will help prevent any surprises that could come up when the resident makes a claim. If there is something that makes a customer hesitate about their warranty plan, they should speak up before committing to a year with the company.

Buying a home warranty plan is an important decision and one that people should make with care. By being aware of some of the things to know before purchasing a plan such as the costs and benefits, homeowners can help ensure they make better choices.

Tampa-based All Real Estate Title Solutions has the best quality service, offering cutting-edge technology and bilingual personnel to serve you in your language. Contact us today to learn more! (813) 876-4373

By Shirley Martin

"Shirley turned her neat freak personality into a business when she became a home organizer. When she isn’t busy working her magic on homes in need of her special touch, she is sharing helpful tips on her site, Tidy Life Today."

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