How to choose the best home warranty
When shopping for a home warranty, there are many factors to consider, the most important of which are transparency, service, value, and integrity. We don’t have to tell you, you often get what you pay for. A home warranty is no exception to this rule. If you’re purely shopping for the absolute cheapest plan out there, you’ll likely be disappointed with the return on your investment. There is much more than price to consider in a home warranty plan.
Transparency
The greatest predictor of satisfaction with your home warranty will be whether you have a clear understanding of what you are buying. One of the biggest problems in shopping for a warranty plan will be wading through the gimmicks and over-promises and getting down to the brass tacks on what is protected, and what is not protected with the plan. Many other home warranty companies are known for over-promising and under delivering. They’re interested in making that initial sale, then often fall short in following through with those promises. This leads buyers to feeling cheated and disappointed.
To avoid this pitfall, always read through the Terms and Conditions or Sample Contract of any home warranty plan you are considering. These documents will tell you exactly what will be paid and what won’t be paid, so you aren’t left in the dark. Always choose a home warranty with a short set of Terms and Conditions that is easy to read and understand. The longer the contract, the more exclusions and catches there are sure to be!
Service
Excellent service is hard to find these days. Many companies have abandoned their commitment to service and seem as though they aren’t interested in talking with their customers at all. In fact, they try to avoid it at all costs. Tired of navigating automated menus? Demand more from your home warranty company! Don’t settle for any company who doesn’t appreciate your business or is impossible to get on the phone. Choose a home warranty that offers 24x7 customer service with live representatives.
Value
Most people assess value in terms of one simple question: do the benefits outweigh the cost? How do you determine which home warranty plan will provide you with the most value for your dollar? This can be tricky, as there are so many different companies and options available.
First, choose a home warranty with no deductible. Why have a home warranty if you’re shelling out a fee each time a repair is needed? Most home warranties include a deductible charge like this in order to discourage the customer from making claims. Well, that’s kind of the point in having the plan, isn’t it? Always choose a company with no deductible.
Second, choose a home warranty that protects every part inside the appliance. You’re probably not an expert on appliances. Don’t feel bad, most of us aren’t. And if you were, you likely wouldn’t be shopping for a home warranty. Many home warranty companies have various parts exclusions included in their contracts, which often makes it confusing to get a handle on exactly what is going to be protected when something breaks. Don’t put yourself in this position. Always choose a company that protects every part inside the appliance.
Integrity
Doing business with an honest, trustworthy, and principled company is the only way to go. How can you find a home warranty company with integrity?
First, choose a home warranty that is small, or family-owned. When doing business with a mega-corporation, you’re just a number. You may even be calling a giant phone bank in another country when you call them. When working with a small, family-owned business, there is accountability and commitment to service not found in huge, impersonal corporations.
Second, choose a home warranty with many years of service under its belt. The worst thing you could do is enroll with a brand new company who may not even be around in another year or two. New companies haven’t had to prove themselves yet and don’t have the track record it takes to earn your trust. If you choose a company that’s been doing business for decades, you can rest assured they’ve stood the test of time and know how to take care of their customers’ warranty needs.
Lastly, choose a home warranty with an excellent reputation. Don’t be fooled by internet or television ads - do your own research and find out which companies have active complaints against them. Many of the largest advertisers in the home warranty space are those with the lousiest reputations. Some are even in trouble with state authorities for not honoring their warranty contracts. Visit the Better Business Bureau and other reliable (unpaid) review websites to find a company who has a solid reputation for taking care of customers.