A home warranty can be a lifesaver when appliances or systems unexpectedly break down. But with so many providers and plans available, how do you know which one is right for you? Asking the right questions before signing up ensures you choose a plan that truly protects your home without draining your budget.
This guide outlines the most important questions to ask when evaluating home warranty companies and plans.
1. What Exactly Does the Plan Cover?
Coverage can vary dramatically between providers. Some plans only cover appliances, while others extend to HVAC systems, plumbing, and electrical. Always ask for a complete list of inclusions and exclusions.
2. Are Pre-Existing Conditions Covered?
Most warranties exclude pre-existing issues. However, some companies offer “unknown pre-existing condition” coverage, which can be valuable for older homes.
3. What Are the Service Fees?
Even with coverage, you’ll typically pay a service call fee ($50–$150) each time a technician visits. Compare fees between providers and factor them into your overall costs.
4. How Are Claims Processed?
Ask about response times and whether claims can be submitted online or via an app. Fast, efficient claims processing is essential during emergencies.
5. Can I Choose My Own Contractor?
Some companies require you to use their network of service providers, while others let you choose your own licensed contractor. Knowing this upfront helps avoid frustration later.
6. What Is the Coverage Limit?
Most home warranty plans have caps—for example, $2,000 per appliance or $10,000 annually. Understanding these limits ensures you won’t face surprise expenses.
7. Are There Add-On Options?
Need coverage for a pool, septic system, or second refrigerator? Check if the company offers add-on coverage to customize your plan.
8. What Happens at Renewal?
Ask about renewal pricing and whether premiums may increase. Some companies lock in rates for multiple years, while others raise them annually.
9. Is the Company Reputable?
Research customer reviews, BBB ratings, and the provider’s financial stability. A warranty is only as good as the company backing it.
Choosing a home warranty is not just about the lowest price—it’s about securing reliable protection for your home. By asking these essential questions, you can confidently select a plan that fits your needs and gives you peace of mind.