Homeowners tend to assume that a home warranty is the same as insurance, which is not the case. Any home buyer or owner ought to understand the basics of home warranties so that they can make enlightened decisions. Here are important tips to consider.
1. Verify licensing of home warranty company
Confirm the verification of the warranty firm with the state’s department of insurance. The company ought to be properly licensed and allowed to do business in the state. In case licensing is not a requirement within your state, you might want to evaluate the firm’s reviews online.
2. Scrutinize the contract
Ensure you read through the fine print of your warranty contract before putting your signature on it. Remember that agreeing to abide by what the contract states means a lot; thus you should be sure of all its contents. Do not shy off from speaking up and getting into the details of the warranty before deciding whether the contract is right for you or not.
3. Communicate with the real estate agent
Most home owners will receive their warranty when buying the house. If this is the case, it is advisable to stay in constant communication with the real estate agent regarding any denied claims. Most agents have an attachment with the home warranty company and might follow up on your behalf.
4. Avoid invalidating your warranty Remember that the warranty offers protection under the specified terms only. The conditions must be met for it to be valid. For starters, the system should fall under the policy statutes. Note that any add-on work might invalidate the warranty. Another requirement is proper maintenance of the system in question. For example, if the furnace should be cleaned at certain intervals, this must be followed. The provider might deny you compensation of this rule is not adhered to. You also ought to understand that some warranties do not cover significant structural damages such as a leaking roof.
