Selecting a home warranty is an important decision that is likely to have a significant impact on your finances in the future. You need to educate yourself and put some effort into finding the right warranty product to make sure that you won't have to pay for home damage out of pocket down the road.
The following are six things that it's important for you to do when you purchase a home warranty to avoid any costly mistakes
Think about how long you're going to be living in your home
Warranties generally only last for a certain amount of time. You don't want to purchase a warranty that's going to last longer than you're planning on staying in the home. On the other hand, some warranties can be renewed if you plan to stay longer. Consider the length of the warranty you're looking into as well as renewal possibilities and costs. Then, decide accordingly on whether the warranty is right for your unique situation.
Look into your warranty company's licensing
Warranty companies typically need to be licensed by the state department of insurance. You should be aware of the licensing status of any company you're looking to do business with. In some states, warranty companies might not officially be required to have licensing. However, it's best to work with licensed companies even if licensing isn't required by your state for the greatest reliability.
Consider what your risks are
Before you purchase a home warranty, you should put some thought into what types of damage your home is most likely to experience. For example, your home might be in a location where it is particularly susceptible to damage from burglars or from hailstorms. After determining what your biggest risks are, make sure that the warranties you're considering offer coverage for those particular risks.
Discuss warranty options with the real estate agent who is selling your home
Perhaps one of the best sources of advice and information on your warranty needs is your real estate agent. Make sure to contact home warranty services such as America's Preferred Home Warranty to ask important questions regarding available warranties. They can recommend which providers and coverage options they think are most important.
Learn what actions might void your warranty
Certain actions like home improvement work or neglected maintenance might void a home warranty. Make sure that you read the fine print and understand what actions will void your warranty so that you can be sure to enjoy warranty options if you need them down the road after paying for a warranty.
Plan your budget carefully
Needless to say, purchasing a home is an expensive proposition. There are a lot of added costs that come up like warranty costs that can significantly impact your budget. Plan your budget carefully and take your warranty cost into consideration to make sure that you'll be able to keep up with mortgage payments and real estate taxes.