Your house is your most valuable asset, and you want to protect that investment. Part of doing that is ensuring that your home’s systems and appliances are in good working order at all times. Unfortunately, repairs and replacements can be prohibitively expensive, but you can protect your finances with a Colorado home warranty. Then, the warranty will keep your systems and appliances in tip-top condition without you having to pay for the repairs or replacements.
First, ask yourself some questions before making a purchase. Then, you will be ready to buy a warranty.
1. Do Your Appliances or Systems Have Known Pre-existing Conditions?
Home warranties are designed to fix and repair systems and appliances that have broken down due to normal wear and tear. However, most warranties don’t repair or replace items that have pre-existing conditions at the time you purchase the warranty.
For example, if your refrigerator stops working before you apply for the warranty, it won’t be covered. You’ll have to handle the replacement or repair yourself.
Keep in mind that some companies cover unknown pre-existing conditions. This means you can get a repair or replacement if you don’t know about the condition ahead of time as long as you weren’t aware of the problem before getting the warranty.
Companies have various sets of requirements when covering items with pre-existing conditions. Generally, companies only pay for items when the problem couldn’t reasonably be discovered with a visual inspection or mechanical test. While a mechanical test sounds complicated, it’s usually just a matter of being able to turn the appliance or system on and off without any issues.
If your appliances are working great now, they could still have pre-existing conditions. Thus, ask the home warranty company how it handles these issues before purchasing coverage. Also, assume that the company won’t pay for coverage for appliances and systems that you know are damaged. Even so, a home warranty can be a good purchase since it will cover appliances and systems that are working now but could break at a later date.
2. Do You Stay on Top of Routine Maintenance?
Before purchasing a home warranty, it’s important to look at your track record regarding maintenance. If you don’t regularly change your air filters, clean the coils in your refrigerator, and complete other regular maintenance tasks, you might have trouble making a successful warranty claim. In fact, some companies require that customers submit proof of maintenance before handling repairs or replacing items.
You can check the status of your appliances by hiring a professional to evaluate them. If your systems and appliances are in good shape, you’ll be ready to speak to a home warranty company. Ask if the maintenance records you have will provide enough evidence for your claims.
On the other hand, if you’ve been diligent about your maintenance, you’re ready to buy a warranty now.
3. What Coverage Do You Need?
Home warranty companies generally offer coverage tiers and add-on options. While this might seem overwhelming, it’s actually easy to find the right coverage after inventorying your home. Consider the age of your appliances and systems to see if they’re likely to break down in the near future. Then, think about the cost of replacing and repairing those items. For instance, replacing a hot water heater can cost $1,500 or more. In fact, you can expect to pay around $3,000 if it’s a tankless water heater. Thus, that’s an expensive item that would benefit from the warranty.
Once you know what you need to cover, look over various plans to see what’s included and excluded. Be especially mindful of possible exclusions, such as the ice maker on your refrigerator. Then, browse the add-ons to see if you need to add additional coverage for exempted or uncovered items.
By the time you finish, you should have a plan that meets your needs. You can use the warranty to repair or replace items instead of digging into your emergency fund or using credit cards.
Shop for a Home Warranty After Answering These Questions
Answering these questions will guide you toward the right home warranty. Spend some time answering the questions, and then pick out your warranty. After the waiting period passes, you can make claims if a covered system or appliance breaks down.
