Home Warranties
According to the Better Business Bureau ("BBB"), many new-home owners are unaware of the limitations on home warranties, which can cause confusion and unnecessary frustration when problems crop up and repairs are needed. To prevent this, the BBB suggests prospective buyers do some research before accepting the keys to their new home.
- Find out how long the warranty company has been in business. Request a reliability report from your local BBB.
- Shop around for the best prices. Most home warranties cost between $300 and $395, but not all offer the same benefits — and make sure to factor in the deductible.
- Ask questions regarding the company’s policy on home repairs. Many have their own service contractors but others allow you to choose your own.
- Get a professional home inspection so you are aware of any possible problems that may not be covered by your warranty.
- Call the warranty company to ask questions and see how the customer service department treats you; this might indicate how you’ll be treated during future calls.
- Know what is covered and what is not. Typically, major operating systems and appliances are covered due to normal wear and tear for the first year.
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